Macro Masterdeck

Economics

Study of the use of scarce resources that have alt. uses.

Hint: Imagine you have a limited amount of candy. You have to choose which pieces you want to eat. This term is like figuring out the best way to use that candy so you’re happy.

Positive question

No value judgements

Hint: What is? Why do ppl. use money?

Normative question

Value judgements

Hint: What ought to be? Should ppl. use money?

Macroeconomics

Studies entire econ.

Hint: Think of this as the economy’s “vital signs”.

Law of diminishing marginal utility

If you give a consumer identical successive units of a consumer good, each unit consumed yields less & less satisfaction than the previous unit.

Hint: Amt added to total utility w/ last unit consumed/change in total utility over change in total quantity

Economic growth

A country is producing more goods and services over time. More stuff is being made, more services are being offered, and more money is flowing through the economy.

Hint: HELP = human capital, entrepreneurship, land & resources, physical capital

Full employment

Almost everyone who wants a job can find one.

Hint: When a parking lot is mostly all taken up, but some spots are still empty.

Economic freedom

People get to make their own choices with their money.

Hint: A “choose your own adventure” book, but when it comes to the cash you have.

Economic security

People feel safe and comfortable about their money and future.

Hint: When you have a rainy day fund that keeps you secure during tough economic times.

Balance of trade

The difference between a country’s exports and imports.

Hint: It’s like a seesaw between the two.

Agents

Anyone who makes choices that affect the economy.

Hint: Players in the game of economics.

Utility

The happiness or satisfaction you get from using something.

Hint: Happiness meter based on what you get.

Marginal revenue

How much extra money you get from selling one more thing.

Hint: A bonus for selling one more lemonade cup.

Marginal cost

How much extra it costs you to make one more product.

Hint: The extra ingredients needed to make another cookie.