Microeconomics Chapter 1: Limits, Alternatives, and Choices (Terms)

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economics

answer

Study of how individuals, institutions, and society make best decisions under scarcity.

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opportunity cost

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The next-best thing we must give up, when we make a choice or decision.

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utility

answer

Pleasure, happiness, or satisfaction obtained form a good or service

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scarcity

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Resources needed to make goods and services are in limited supply -- restricts our options and demands

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"No free lunch"

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An item has value, was created at a cost, and is created for its marketing

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marginal analysis

answer

Comparisons of marginal benefits and marginal costs, usually for decision making

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microeconomics

answer

Study of a single factor of an economy - such as individuals, households, businesses, & industries - rather than an economy as a whole.

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capital

answer

Private ownership of property and resource

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capital goods

answer

Buildings, machines, technology, and tools needed to produce goods and services

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factors of production

answer

Land, Labor, Capital, Entrepreneurship

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entrepreneurial ability

answer

Managerial and organizational skills need to start a firm, combined with willingness to take risks

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land

answer

All natural resources used to produce goods and services.

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labor

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People with all their efforts, abilities, and skills

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economizing problem

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The need to make choices because economic wants exceed economic means

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law of increasing opportunity costs

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As production of a good increases, the opportunity cost of producing an additional unit rises

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economic resources

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All natural, human, and manufactured resources that go into the production of goods and services.

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question

economics

answer

Study of how individuals, institutions, and society make best decisions under scarcity.

question

opportunity cost

answer

The next-best thing we must give up, when we make a choice or decision.

question

utility

answer

Pleasure, happiness, or satisfaction obtained form a good or service

question

scarcity

answer

Resources needed to make goods and services are in limited supply -- restricts our options and demands

question

"No free lunch"

answer

An item has value, was created at a cost, and is created for its marketing

question

marginal analysis

answer

Comparisons of marginal benefits and marginal costs, usually for decision making

question

microeconomics

answer

Study of a single factor of an economy - such as individuals, households, businesses, & industries - rather than an economy as a whole.

question

capital

answer

Private ownership of property and resource

question

capital goods

answer

Buildings, machines, technology, and tools needed to produce goods and services

question

factors of production

answer

Land, Labor, Capital, Entrepreneurship

question

entrepreneurial ability

answer

Managerial and organizational skills need to start a firm, combined with willingness to take risks

question

land

answer

All natural resources used to produce goods and services.

question

labor

answer

People with all their efforts, abilities, and skills

question

economizing problem

answer

The need to make choices because economic wants exceed economic means

question

law of increasing opportunity costs

answer

As production of a good increases, the opportunity cost of producing an additional unit rises

question

economic resources

answer

All natural, human, and manufactured resources that go into the production of goods and services.

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