Econ 1101

Economy

Comes from the Greek word for “one who manages a household”

Economics

The study of how society manages its scare resources

Equity

Benefits of those resources shared fairly among the members of society

Opportunity Cost

Whatever must be giving up to obtain some item

Rational People

those who systematically and purposefully do their objectives

Market Economy

People and companies decide what to make, sell, and buy

Market Failure

Market Power

The ability of a single economic actor to have substantial influence on the market prices

Productivity

the quantity of goods and services produced per hour of worker’s time

Business Cycle

The economy's natural cycle of ups and downs over time