econ 202 hayes ole miss midterm study
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1. Opportunity cost the amount of other products that must be
forgone or sacrificed to produce a unit of a
product
2. scarcity The limits placed on the amounts and types
of goods and services available for consump-
tion as the result of there being only limited
economic resources from which to produce
output; the fundamental economic constraint
that creates opportunity costs and that neces-
sitates the use of marginal analysis (cost-ben-
efit analysis) to make optimal choices.
3. law of increasing opportunity costs the principle that as the production of a good
increases, the opportunity cost of producing
an additional unit rises
4. What does "other things equal" (ceteris The assumption that factors other than those
paribus) mean being considered are held constant
5. microeconomics is concerned with decision making by individ-
ual customers, workers, households, and busi-
ness firms
6. macroeconomics examines the performance and behavior of the
economy as a whole. focuses on business cy-
cle, interest rates, inflation, and the behavior of
major economic aggregates
7. utility the want-satisfying power of a good or service;
the satisfaction or pleasure a consumer ob-
tains from the consumption of a good or ser-
, econ 202 hayes ole miss midterm study
Study online at https://quizlet.com/_ac9wcz
vice (or from the consumption of a collection
of goods and services)
8. what does the production possibilities the various combinations of two goods that
curve represent? can be produced when society employs all its
scarce resources
9. how is the production possibilities curve inside curve attainable, outside unattainable,
illustrated on line = max combo
10. What does it mean to move along the In producing more pizzas, society increases the
production possibilities curve from one satisfaction of its current wants. But there is a
point to another, and from one curve to cost: More pizzas mean fewer industrial robots.
another? This shift to consumer goods catches up with
society over time because the stock of capital
goods expands more slowly, thereby reducing
potential future production. By moving toward
alternative E, society chooses "more now" at
the expense of "much more later."
11. what happens when there is a positive sjfkdlasjdfkla;j
technological shift?
12. demand schedule or a curve that shows the various
amounts of a product that consumers are will-
ing and able to purchase at a series of possible
prices during a specified period of time, other
things equal
13. law of demand the principle that, other things equal, an in-
crease in a product's price will reduce the
Study online at https://quizlet.com/_ac9wcz
1. Opportunity cost the amount of other products that must be
forgone or sacrificed to produce a unit of a
product
2. scarcity The limits placed on the amounts and types
of goods and services available for consump-
tion as the result of there being only limited
economic resources from which to produce
output; the fundamental economic constraint
that creates opportunity costs and that neces-
sitates the use of marginal analysis (cost-ben-
efit analysis) to make optimal choices.
3. law of increasing opportunity costs the principle that as the production of a good
increases, the opportunity cost of producing
an additional unit rises
4. What does "other things equal" (ceteris The assumption that factors other than those
paribus) mean being considered are held constant
5. microeconomics is concerned with decision making by individ-
ual customers, workers, households, and busi-
ness firms
6. macroeconomics examines the performance and behavior of the
economy as a whole. focuses on business cy-
cle, interest rates, inflation, and the behavior of
major economic aggregates
7. utility the want-satisfying power of a good or service;
the satisfaction or pleasure a consumer ob-
tains from the consumption of a good or ser-
, econ 202 hayes ole miss midterm study
Study online at https://quizlet.com/_ac9wcz
vice (or from the consumption of a collection
of goods and services)
8. what does the production possibilities the various combinations of two goods that
curve represent? can be produced when society employs all its
scarce resources
9. how is the production possibilities curve inside curve attainable, outside unattainable,
illustrated on line = max combo
10. What does it mean to move along the In producing more pizzas, society increases the
production possibilities curve from one satisfaction of its current wants. But there is a
point to another, and from one curve to cost: More pizzas mean fewer industrial robots.
another? This shift to consumer goods catches up with
society over time because the stock of capital
goods expands more slowly, thereby reducing
potential future production. By moving toward
alternative E, society chooses "more now" at
the expense of "much more later."
11. what happens when there is a positive sjfkdlasjdfkla;j
technological shift?
12. demand schedule or a curve that shows the various
amounts of a product that consumers are will-
ing and able to purchase at a series of possible
prices during a specified period of time, other
things equal
13. law of demand the principle that, other things equal, an in-
crease in a product's price will reduce the