Video Notes - Page 1: Key Economic Terms

30 fill-in-the-blank flashcards covering key economic terms from Page 1 notes.

A basic unit of decision-making in an economy is a __.

Household

Output per unit of input is a measure of __.

Productivity

Focusing on a narrow set of tasks to increase efficiency is called __.

Specialization

Markets where inputs like labor and capital are bought and sold are __.

Factor markets

Markets where goods and services are bought and sold are __.

Product markets

The process of comparing costs and benefits to decide whether to undertake an action is __.

Cost-benefit analysis

The additional benefit from consuming one more unit is __.

Marginal benefits

The additional cost incurred from producing one more unit is __.

Marginal costs

A business organization that produces goods or services is a __.

Firm

A system where buyers and sellers exchange goods and services is a __.

Market

Trade that occurs through mutual consent is called __ exchange.

Voluntary exchange

Revenue minus costs of production equals __.

Profit

Rivalry among sellers to attract customers is a feature of __.

Competition

The incentive to earn profits driving business decisions is the __ motive.

Profit motive

Maximizing output from given resources describes __.

Efficiency

Fairness in the distribution of economic outcomes is called __.

Equity

The value of the next best alternative foregone is the __.

Opportunity Cost

A framework for weighing costs and benefits to determine if a project should be undertaken is a __.

Cost-benefit analysis

The additional benefit from one more unit is called __.

Marginal benefits

The additional cost from producing one more unit is called __.

Marginal costs

Households supply labor in the __ markets.

Factor markets

Firms demand factors like labor in the __ markets.

Factor markets

Goods and services are bought and sold in the __ markets.

Product markets

The motive to maximize profits driving business decisions is the __ motive.

Profit motive

Market structures and strategies arise from __ among sellers and buyers.

Competition

Fairness in the distribution of economic outcomes is called __.

Equity

The value of the next best alternative foregone is the __.

Opportunity Cost

Decisions about pursuing an extra unit are guided by __.

Cost-benefit analysis

In the circular flow, households and firms participate in the __ market for factors of production.

Factor markets

The goal of using resources efficiently to maximize output is __.

Efficiency