Econ102: Microeconomics Vocabulary Quiz!

 What is the study of how people/society allocate their limited/scarce resources in an attempt to satisfy unlimited wants?

What is anything available that could be used to produce goods or services to satisfy people's wants?

What are rewards for engaging in a particular behavior called?

What is the term for to behave rationally, we expect people to make choices that maximize their happiness?

What is the term for all other things being equal called?

What is the term for getting the most out of a resource; using it in the most productive way?

What is the term for distributing economic prosperity fairly between members of society?

What is the term for when a free functioning market does not maximize society's welfare?

 Adam Smith (1776) -- People acting in their own self-interest are lead as if by an invisible hand to do what is in the best interest of society is called?

A situation in which the ingredients for producing the things that people desire are insufficient to satisfy all wants is called what?

Any activity that results in the conversion of resources into products that can be used for consumption is called?

* This one requires two terms, so when doing it, denote a comma to separate the two terms * Resources available from nature (earn rent) and human effort (earns wages) are called:

Factories, equipment, goods used to make other goods (earn interest):

Risk-taking and management (earns profit):

The highest valued, next best alternative that must be sacrificed when an activity is chosen is called:

  a curve representing all possible combinations of total output that could be produced -- shows opp. cost and scarcity -- shift out is economic growth

When one agent can produce more:

When one agent has a lower opp. cost -- specialize according to comp. adv.

What must be voluntary and mutually beneficial?

The amount of a good that buyers are willing to purchase at a given price?

The quantities that buyers are willing to purchase at all prices (a curve):

As the price of a good rises the quantity demanded falls:

Income is fixed so as prices rise, we can afford less:

As the price of one good rises we will substitute toward other, relatively lower-priced goods:

What does the list below demonstrate? shift the entire demand curve - increase or decrease quantities overall prices -Income -Tastes -Prices of related goods (complements and substitutes) -Number of buyers -Expected Price/Expectations