Sophia Microeconomics Alpha. Key Terms- Unit 1 Questions And Answers All Correct

Sophia Microeconomics Alpha. Key Terms- Unit 1 Questions And Answers All Correct Absolute Advantage - CORRECT ANSWERS The capacity to produce a higher number of goods or services using the same production resources as competitors. Capital - CORRECT ANSWERS Material assets in the form of money or machinery used as a factor of production. Ceteris Paribus - CORRECT ANSWERS Holding all other variables constant. Comparative Advantage - CORRECT ANSWERS A trading advantage achieved over another company due to lower opportunity cost. Complement Goods - CORRECT ANSWERS A good for which the demand increases as the price of an associated good decreases. Constraints - CORRECT ANSWERS An element that interrupts production of a firm or consumption by individuals. Constraints - CORRECT ANSWERS An element that creates parameters which may interrupt the achievement of a goal. Constraints - CORRECT ANSWERS An element that interrupts production of a firm or consumption by individuals. Consumer Optimization - CORRECT ANSWERS Maximization of consumer utility within the parameters of household income and price of goods or services. Consumer Surplus - CORRECT ANSWERS Determined by the difference between actual price paid for a good and the highest amount the consumer would have paid for the good. Cost Minimization - CORRECT ANSWERS Output strategy that incurs the least amount of cost. Deadweight Loss - CORRECT ANSWERS A variable that decreases the producer and consumer surplus due to a section of incapacitated resource, such as tax. Factors of Production - CORRECT ANSWERS Resources defined as land, labor, and capital that are necessary to produce output for the sake of profit. Factors of Production - CORRECT ANSWERS Resources defined as land, labor, and capital that are necessary to produce output. Final Goods - CORRECT ANSWERS Products ultimately produced. Finite Resource - CORRECT ANSWERS A fixed amount of supply that is irreplaceable and non-recoverable. Giffen Goods - CORRECT ANSWERS A good for which the demand increases with price and falls as price decreases. Income - CORRECT ANSWERS Money earned in exchange for capital or labor within a particular time interval. Inferior Goods - CORRECT ANSWERS Goods for which demand decreases as income increases. Intermediate Goods - CORRECT ANSWERS Products or services used to generate other goods. Labor - CORRECT ANSWERS Human service that contributes to the creation or distribution of goods or services. Labor/Leisure Trade-Off - CORRECT ANSWERS Comparison between time spent working and earning income, versus time spent participating in non- work activities and earning value in satisfaction.