5038005
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Mind Map by Love Lea Lyds, updated more than 1 year ago
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Created by Love Lea Lyds
over 9 years ago
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Chapter 1
- MacroEconomics - 1)the study of the economy as a whole (mak).2) the study of the
economy-wide phenomena,which includes inflation, unemployment, and
economic growth (eoe)
- Principle 1) Efficiency - the property of society getting the most it can from its
scarce resources. Equality- the property of distributing economic
prosperity uniformly among members of society .(eoe)
- Principle 2- The Opportunity of Cost- whatever must be given up to obtain some item
- Principle 3- Rational People-People who systematically and purposefully do the best they can to
achieve their objectives
- Marginal Change - a small incremental adjustment to a plan.
- Incentive- something that induces a person to act
- Market economy - when an economy allocates
resources through the decentralized decisions of
many firms and households as they interact in
market for goods and services
- Property Rights - the ability of an
ondividual to own and exercise control
over scarce resources
- Market failure - the
moment n which a
market left on it
own to fails to
aallocate resources
efficently
- Externaility - the impact of one's person
actions on the well being of a bystander
- Market power- the ability of a single
economic actor ( or small economic actors) to
have a substantial influence on market prices
- Productivity - the quantity of goods and
services produced from each unit of labor
inout
- Inflation - an increase in the overall
level of prices in the economy
- Business cycle - fluctuations in
economic activity , such as
employment and production
- Business cycle - fluctuations in
economic activity , such as
employment and production
- Inflation - an increase in the overall
level of prices in the economy
- Productivity - the quantity of goods and
services produced from each unit of labor
inout
- Market power- the ability of a single
economic actor ( or small economic actors) to
have a substantial influence on market prices
- Externaility - the impact of one's person
actions on the well being of a bystander
- Market failure - the
moment n which a
market left on it
own to fails to
aallocate resources
efficently
- Property Rights - the ability of an
ondividual to own and exercise control
over scarce resources
- Market economy - when an economy allocates
resources through the decentralized decisions of
many firms and households as they interact in
market for goods and services
- Incentive- something that induces a person to act
- Marginal Change - a small incremental adjustment to a plan.
- Principle 3- Rational People-People who systematically and purposefully do the best they can to
achieve their objectives
- Principle 2- The Opportunity of Cost- whatever must be given up to obtain some item
- Principle 1) Efficiency - the property of society getting the most it can from its
scarce resources. Equality- the property of distributing economic
prosperity uniformly among members of society .(eoe)
- Economics 1) the study of how society manages its scares
resources (eoe)
- MicroEconomics 1)the study of how households and firms make decisions
and how they interact in markets (eoe) 2) the study of individual markets and
decision makers.(mak)
- Scarcity - the limited
nature of societies
resources (eoe)
- Scarcity - the limited
nature of societies
resources (eoe)
- MicroEconomics 1)the study of how households and firms make decisions
and how they interact in markets (eoe) 2) the study of individual markets and
decision makers.(mak)
- chapter 1 - 10 Principles of Econ (eoe)
- Principles 1-
People Face
Trade-offs - eg.
trades off as a
student to study
or not, trade off
as a parent. An
economy usually
makes a payment
between "guns"
and "butter"
- Economics
acknowledges the
trade-off's that must
exist in society.
- Economics
acknowledges the
trade-off's that must
exist in society.
- Principle 2- The Cost of
Something is what you
give up to get it- The
cost you pay is
sometimes not as
obvious as it seems. eg:
the cost to go to college
is not cost of room,
food etc. But the cost of
your time and earning
potential time.
- Principle 3 Rational People think at the
Margin - decisions are made
because of the small but
important incremental
adjustments to a plan of action
eg: whether to take that extra
bit of food, whether an airline
should look at the marginal cost
- Principle 4- People to respond to
incentive - People respond to
incentives - the rest is
commentary. eg Gas prices
being high and such its better to
look for other means of
transport, the incnetive of
wearing a seat belt, the
incentive of bus drivers who are
paid by the hour or per
pssagnger trip.
- Principle 5- Trade can
make everyone better
off - Trade
competitions between
countries are different
from those in sports.
When one side win
both sides can win
- Prinicple 6- Market are usually a
good way to organize economic
activity - allow the invisible
hand of the marketplace to
control the market.
Communisim didn't succeed
because it tried to influence the
prices that the market produce.
- Principle 7 - Governments
can sometimes improve
market outcomes - the
government help to police
the efficiency and equality
of a countries population
- Principle 8 - A
country's standard
of living depends on
its ability to produce
good and services -
the level productivty
of a country assist in
the growth of the
counrty.
- Principle 9 - Prices Rise
when the government
prints too much money
- inflation in a country
can account for the
some of the economic
chanllenges that ,ay
occur in a society
- Principle 10 : Society faces a
short-run tradeoff between
inflation and unemployment -
economics have had to agree
that there is a short run trade
off between inflation and
unemployment
- Principle 10 : Society faces a
short-run tradeoff between
inflation and unemployment -
economics have had to agree
that there is a short run trade
off between inflation and
unemployment
- Principle 9 - Prices Rise
when the government
prints too much money
- inflation in a country
can account for the
some of the economic
chanllenges that ,ay
occur in a society
- Principle 7 - Governments
can sometimes improve
market outcomes - the
government help to police
the efficiency and equality
of a countries population
- Principle 4- People to respond to
incentive - People respond to
incentives - the rest is
commentary. eg Gas prices
being high and such its better to
look for other means of
transport, the incnetive of
wearing a seat belt, the
incentive of bus drivers who are
paid by the hour or per
pssagnger trip.
- Principles 1-
People Face
Trade-offs - eg.
trades off as a
student to study
or not, trade off
as a parent. An
economy usually
makes a payment
between "guns"
and "butter"
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