Econ 200: Introduction to Microeconomics

These flashcards cover key vocabulary and concepts related to the Introduction to Microeconomics course.

Economics

The study of mankind in the ordinary business of life, examining individual and social action connected with the attainment and use of material requisites of well-being.

Scarcity

A situation in which unlimited wants exceed the limited resources available to fulfill those wants.

Opportunity Cost

The true cost of a choice, representing the value lost by not choosing the next-best alternative.

Marginal Cost (MC)

The additional cost associated with producing or consuming one more unit of a good or service.

Marginal Benefit (MB)

The additional benefit received from consuming one more unit of a good or service.

Incentive

Something that influences behavior by changing marginal costs or benefits.

Microeconomics

The study of how households and firms make choices and how they interact in markets.

Macroeconomics

The study of the economy as a whole, including inflation, unemployment, and economic growth.

Econometrics

The application of statistical methods to economic data for the purpose of testing theories and models.

Positive Analysis

The study of how things are, focusing on facts and cause-and-effect relationships.

Normative Analysis

The study of how things should be, focusing on opinions and values.

Rationality

The principle that individuals use all available information to make decisions that maximize their goals.