Economics Today (the Macro View) Chapters 1-4
Incentives ️Rewards or penalties for engaging in a particular activity
Economics ️The study of how people allocate their limited resources to satisfy their unlimited wants
Resources ️Things used to produce goods and services to satisfy peopl...
Economics Today (the Macro View) Chapters 1-4
Incentives ✔️Rewards or penalties for engaging in a particular activity
Economics ✔️The study of how people allocate their limited resources to satisfy their unlimited wants
Resources ✔️Things used to produce goods and services to satisfy people's wants
Wants ✔️What people would buy if their incomes were unlimited
Microeconomics ✔️The study of decision making undertaken by individuals (or households) and by
firms
Macroeconomics ✔️The study of the behavior of the economy as a whole, including such economywide
phenomena as change in unemployment, the general price level, and national income
Aggregates ✔️Total amounts or quantities. ____________ demand, for example, is total planned
expenditures throughout a nation
, Economic system ✔️A society's institutional mechanism for determining the way in which scarce
resources are used to satisfy human desires
Rationality assumption ✔️The assumption that people do not intentionally make decisions that would
leave them worse off
Models, or theories ✔️Simplified representations of the real world used as the basis for predictions or
explanations
Ceteris paribus assumption ✔️The assumption that nothing changes except the factor or factors being
studied
Empirical ✔️Relying on real-world data in evaluating the usefulness of a model
Behavioral economics ✔️An approach to the study of consumer behavior that emphasizes
psychological limitations and complications that potentially interfere with rational decision making
Bounded rationality ✔️The hypothesis that people are nearly, but not fully, rational, so that they
cannot examine every possible choice available to them but instead use simple rules of thumb to sort
among the alternatives that happen to occur to them
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CertifiedGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
