Studied by 1 person
Looks like no one added any tags here yet for you.
Economics
The study of how people make choices under scarcity (limited resources).
Scarcity
A situation in which resources are limited, necessitating choices about their use.
Opportunity Cost
The value of the next best alternative given up when making a choice.
Production Possibilities Frontier (PPF)
A graph showing the maximum feasible production combinations of two goods.
Economic Growth
Increase in an economy’s production of goods and services.
Circular Flow Model
Describes the movement of money and resources between households and firms.
Marginal Benefit
The additional satisfaction gained from consuming one more unit.
Marginal Cost
The cost of producing one additional unit of a good.
Positive Analysis
Objective, fact-based analysis.
Normative Analysis
Subjective analysis based on opinions or value judgments.
Incentive
A factor that motivates individuals to take action or make a choice.
Correlation
A relationship between two variables.
Causation
When one variable directly causes changes in another.
Fallacy of Composition
The mistaken belief that what is true for an individual is also true for the group.
Market
A system where buyers and sellers exchange goods and services.
Law of Demand
As price decreases, quantity demanded increases (and vice versa).
Normal Goods
Goods for which demand increases as income increases.
Inferior Goods
Goods for which demand decreases as income increases.
Market Equilibrium
The point where the quantity demanded equals the quantity supplied.
Shortage
A situation where demand exceeds supply.
Surplus
A situation where supply exceeds demand.
Relative Poverty
Poverty measured in relation to others in society.
Absolute Poverty
A condition where basic needs cannot be met.
Poverty Line
A threshold defining the minimum income needed to meet basic living needs.
Poverty Rate
The percentage of people living below the poverty line.
Poverty Gap
The difference between the poverty line and the income of those living in poverty.
Cash Transfers
Direct financial assistance provided to individuals.
In-Kind Transfers
Non-cash benefits like food stamps or Medicaid.
Gini Coefficient
A measure of income inequality, with 0 being perfect equality and 1 being perfect inequality.
Wealth Inequality
Measures the distribution of assets and disparities in wealth accumulation.
Capital Gains Tax
A tax on profits from investments that affects income distribution.
Intergenerational Income Elasticity
The degree to which income is passed down across generations.
GDP
The total output produced within a country.
GNP
The total income of a country's residents, including income from abroad.
GNI
GDP plus net income received from other countries.
Capital-Intensive Technology
Technologies that require significant capital investment.
Labor-Intensive Technology
Technologies that require significant human labor.
Investment in Human Capital
Investments in education, training, and healthcare to improve productivity and well-being.
Note 
Flashcard (22)