Macro Ch 1 Vocab

cnbunny's version from 2016-03-03 06:54


Question Answer
the total amount of capital in a nation that is productively useful at a particular point in timecapital stock
the study of choice under conditions of scarcityeconomics
the ability & willingness to combine the other resources - labor, capital, and land - into a productive enterpriseentrepreneurship
the dollars sacrificed - and actually paid out - for a choiceexplicit cost
the skills and knowledge of the labor forcehuman capital
anything (including a resource) used to produce a good or serviceinput
the time human beings spend producing goods & services labor
the study of the behavior of the overall economymacroeconomics
the study of the behavior of individual households, firms & governments; the choices they make; and their interaction in specific marketsmicroeconomics
what is given up when taking an action or making a choiceopportunity cost
the labor, capital, land (including natural resources), and entrepreneurship that are used to produce goods & servicesresources
a situation in which the amount of something available is insufficient to satisfy the desire for it scarcity
the practice of recommending policies to solve economic problemsnormative economics
the study of how the economy workspositive economics