Unit 1 Micro Lesson Notes

Scarcity

________- society has less to offer than people wish to have.

Physical plants

________, machinery, and equipment used to produce other goods or services.

maximum satisfaction

Economics- the efficient use or management of limited productive resources to achieve ________ (utility) of human material wants.

Businesses

________ buy the resources to produce goods and services that are then sold in the products market to households.

Unemployment

________- when we fail to realize our full production.

Households

________ are the ones who buy the goods and services in the products market.

test of a theory

The ________ is its ability to predict correctly.

opportunity cost

The amount of other products that must be forgone or sacrificed to obtain some amount of a specific product called ________ of that good.

Inverse Relationship

________- down- sloping line that depicts a change in opposite directions of the variables in question.

Households

________ are the owners of the resources (selling their resources in the resource market) and income flows into the ________.

Lesson 1

The Economic Way of Thinking

Lesson 2

Intro to Economic Terms

Economics

the efficient use or management of limited productive resources to achieve maximum satisfaction (utility) of human material wants

Scarcity 

society has less to offer than people wish to have

Resources

anything people can use to obtain what they want (factors of production)

Facts tan avoids values judgment

inflation or unemployment number

Direct Relationships

up-sloping line that depicts a direct relationship between two variables

Inverse Relationship

down-sloping line that depicts a change in opposite directions of the variables in question

 Lesson 3

Production Possibilities Curve or Frontier

Unemployment

when we fail to realize our full production

Fixed Resources in the short run

today it is what it is and tomorrow it can be changed

Means that the graph of the PPC curve will be CONCAVE

bowed out from the origin

Lesson 5

Basic Economic Systems

Planned economy

socialism

Lesson 6

Circular Flow Diagram