Studied by 6 peopleScarcity
________ occurs when we have fewer resources than we have uses for those resources . '
Economic tools
________ help us to understand and analyse choices and their implications.
Decision makers
________ weigh the costs and benefits associated with any choice in order to maximize the value of some objective.
Macroeconomics deals
________ with the choices we make as a society, such as how much tax to pay and how many progran1s the government should sponsor.
Utility
________ is a synonym tor satisfaction or happiness and describes the benefit individuals get from their choices.
Ceteris paribus
________ is a Latin term that means "all other things remaining constant "or "all else equal ..
data points
By convention, the term "curve "is used to describe the connected ________, regardless of whether the curve is a straight line or not.
Profit
________ is the difference between the earnings that a firm receives from selling its good or service and the costs incurred to produce the good or service.
Analysis
________ of economic choices often involves relaxing the ceteris paribus assumption in a series of steps.
Microeconomics deals
________ with the choices individuals, households, or businesses make, the decision for both spouses in a family to have paid employment, and the decisions firms make when hiring workers.
Graphs
________ are visual representations of relationships between two or more variables.
Sunk costs
________ are irrelevant when making decisions at the margin.
Scarcity
________ forces us to allocate our scarce resources among the many uses for them, and we have to make choices or trade- offs between these various uses.
Profit
________ is the benefit that firms get from their choices.
The law of diminishing marginal benefits
as more and more of an activity is done, the marginal benefits derived from the activity lend to diminish
The law of marginal cost
as more and more of an activity is done, the marginal costs of the activity tend to increase
Note 
Flashcard (56)