Macroeconomics Chapter 1 Term

actress9098's version from 2015-09-07 20:19

Section 1

Question Answer
Marginal AnalysisComparison Of marginal benefits and marginal cost
Ceteris ParibusThe assumption that every factor is the same except the one s being tested
AggregateA collection of separate economic units treated as if they were one
+ economicsFocuses on facts and cause and effect relationships
Normative economicsValue judgements on what the economy should be
Economizing problemThe need to make choices because wants outnumber needs
Budget LineA curve that shows the different combinations of two products one could make with a certain income
InvestmentSpending that pays for capital resources
Factors of productionAll the resources needed to make a good or service

Section 2

Question Answer
Law of Increasing Opportunity CostsThe more you get of this, the increasing OC you lose of something else
Production Possibilities CurveCombinations of goods and services that society can produce in a fully functional economy

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