Econ Assignment 1/MUST KNOW

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Author:
gerardcb
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181081
Filename:
Econ Assignment 1/MUST KNOW
Updated:
2012-11-01 04:39:28
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economics 201
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Economics 201
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  1. An economy that allocates resources through the decentralized decisions of many rms and households as they interact in markets for goods and services
    Market Economy
  2. The study of how households and rms make decisions and how they interact in markets
    Microeconomics
  3. People who systematically and purposefully do the best they can to achieve their objectives
    Rational People
  4. Whatever must be given up to obtain some item
    Opportunity Cost
  5. *A good for which, other things equal, an increase in income leads to a decrease in demand
    Inferior Good
  6. Something that induces a person to act
    Incentive
  7. The study of how society manages its scarce resources
    Economics
  8. The limited nature of society's resources
    Scarcity
  9. An increase in the overall level of prices in the economy
    Inflation
  10. Claims that attempt to prescribe how the world should be
    Normative Statements
  11. The claim that, other things equal, the quantity demanded of a good falls whenthe price of the good rises
    Law of Demand
  12. *A good for which, other things equal, an increase in income leads to an increase in demand
    Normal Good
  13. The property of society getting the most it can from its scarce resources
    Efficiency
  14. Claims that attempt to describe the world as it is
    Positive Statements
  15. Two goods for which an increase in the price of one leads to an increase in the demand for the other
    Substitutes
  16. The claim that, other things equal, the quantity supplied of a good rises when the price of the good rises
    Law of Supply
  17. The study of economy-wide phenomena, including in ation, unemployment, and economic growth
    Macroeconomics
  18. Two goods for which an increase in the price of one leads to a decrease in the demand for the other
    Complements
  19. *What causes shortage?
    Lower Equilibrium
  20. *Tax levied shifts demand curve to the...
    Left
  21. *The word Economics came from the ______ and means ______.
    Greek, management of a household
  22. *Prices reflect _____  __  _______ & ___  __  ______
    Value of Consumer & Cost for producer
  23. *Where are the prices reflected in?
    Invisible Hand
  24. *Economists rely on ________ offered by _______.
    experiments; history
  25. *What is economic activity guided by?
    Prices
  26. *What market does not have an influence in price?
    Competitive market
  27. *In compliment goods, Good ______, then demand for other good _____
    increases; decreases

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