Download Chapter 1 | ECON 101 - Principles of Macroeconomics and more Quizzes Introduction to Macroeconomics in PDF only on Docsity!
TERM 1
Economics
DEFINITION 1 The study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. TERM 2
Opportunity Cost
DEFINITION 2 The best alternative that we forgo, or give up, when we make a choice or a decision. TERM 3
Scarce
DEFINITION 3 limited. TERM 4
Marginalism
DEFINITION 4 The process of analyzing the additional or incremental costs or benefits arising from a choice or decision. TERM 5
Sunk Costs
DEFINITION 5 Costs that cannot be avoided because they have already been incurred.
TERM 6
Efficient Market
DEFINITION 6 A market in which profit opportunities are eliminated almost instantaneously. TERM 7
Industrial Revolution
DEFINITION 7 The period in England during the late 18th and 19th centuries in which new manufacturing technologies and improved transportation gave rise to the modern factory system and a massive movement of the population from the countryside to the cities. TERM 8
OPEC
DEFINITION 8 The Organization of the Petroleum Exporting Countries (OPEC) is a cartel of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. TERM 9
Microeconomics
DEFINITION 9 The branch of economics that examines the functioning of individual industries and the behavior of individual decision making units (firms and households). TERM 10
Macroeconomics
DEFINITION 10 Branch of economics that examines the economic behavior of aggregates- income, employment, output, and so on- on a national scale.
