Microeconomics
Scarcity - Answer-the condition of having to choose among alternatives
scarce good - Answer-one for which the choice of one alternative requires that another be given up
free good - Answer-one for which the choice of one use does not require that we give up another.
opportunity cost - Answer-the value of the best alternative forgone in making any choice.
margin - Answer-is the current level of an activity.
choice at the margin - Answer-a decision to do a little more or a little less of something.
Ceteris paribus - Answer-a Latin phrase that means "all other things unchanged."
fallacy of false cause - Answer-Reaching the incorrect conclusion that one event causes another because
the two events tend to occur together
positive statement - Answer-A statement of fact or a hypothesis
normative statement - Answer-one that makes a value judgment.
, quantity demanded of a good or service - Answer-is the quantity buyers are willing and able to buy at a
particular price during a particular period, all other things unchanged.
demand schedule - Answer-a table that shows the quantities of a good or service demanded at different
prices during a particular period, all other things unchanged.
demand curve - Answer-a graphical representation of a demand schedule.
change in quantity demanded - Answer-A movement along a demand curve that results from a change
in price
law of demand - Answer-for virtually all goods and services, a higher price leads to a reduction in
quantity demanded and a lower price leads to an increase in quantity demanded.
change in demand - Answer-A shift in a demand curve
demand shifter - Answer-A variable that can change the quantity of a good or service demanded at each
price
complements - Answer-if a reduction in the price of one good increases the demand for another, the
two goods are called
substitutes - Answer-If a reduction in the price of one good reduces the demand for another, the two
goods are called
normal good - Answer-A good for which demand increases when income increases is called a
inferior good - Answer-A good for which demand decreases when income increases is called an
Scarcity - Answer-the condition of having to choose among alternatives
scarce good - Answer-one for which the choice of one alternative requires that another be given up
free good - Answer-one for which the choice of one use does not require that we give up another.
opportunity cost - Answer-the value of the best alternative forgone in making any choice.
margin - Answer-is the current level of an activity.
choice at the margin - Answer-a decision to do a little more or a little less of something.
Ceteris paribus - Answer-a Latin phrase that means "all other things unchanged."
fallacy of false cause - Answer-Reaching the incorrect conclusion that one event causes another because
the two events tend to occur together
positive statement - Answer-A statement of fact or a hypothesis
normative statement - Answer-one that makes a value judgment.
, quantity demanded of a good or service - Answer-is the quantity buyers are willing and able to buy at a
particular price during a particular period, all other things unchanged.
demand schedule - Answer-a table that shows the quantities of a good or service demanded at different
prices during a particular period, all other things unchanged.
demand curve - Answer-a graphical representation of a demand schedule.
change in quantity demanded - Answer-A movement along a demand curve that results from a change
in price
law of demand - Answer-for virtually all goods and services, a higher price leads to a reduction in
quantity demanded and a lower price leads to an increase in quantity demanded.
change in demand - Answer-A shift in a demand curve
demand shifter - Answer-A variable that can change the quantity of a good or service demanded at each
price
complements - Answer-if a reduction in the price of one good increases the demand for another, the
two goods are called
substitutes - Answer-If a reduction in the price of one good reduces the demand for another, the two
goods are called
normal good - Answer-A good for which demand increases when income increases is called a
inferior good - Answer-A good for which demand decreases when income increases is called an
