Principles of Microeconomics

These flashcards cover key concepts and definitions from the lecture notes on Microeconomics, focusing on the nature and scope of economics, micro and macroeconomics distinctions, and fundamental economic theories.

Economics can be defined as a __ science that is concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic wants.

social

Microeconomics examines the functioning of individual __ and the behaviour of individual decision making units such as business firms and households.

industries

In macroeconomics, we study economy-wide phenomena such as __, unemployment, and economic growth.

inflation

Opportunity cost is defined as the value of the next best alternative __ when one alternative is chosen.

forgone

An example of a positive economic statement is: If carbon emissions were cut by 25%, air quality would __ and the number of people diagnosed with asthma would decrease significantly.

improve

Normative statements are statements about how the world __ be or how the world ought to be.

should

The PPF represents all the different combinations of goods and services an economy can produce at maximum __.

efficiency

The principle of increasing opportunity cost states that in order to get more of something, one must give up ever increasing __ of something else.

quantities

Equity refers to fairness or __ distribution of resources.

equal

Ceteris paribus, or all else equal, is a device used to analyze the relationship between two variables while the values of other __ are held unchanged.

variables

Economists use tools such as __ and graphs to represent relationships between variables.

math