Economics for Today by Irvin B. Tucker
Chapter 1: Introduction to Economics
1. Scarcity ️: The condition in which human wants are forever greater than the available supply of
time, goods, and resources.
2. Resources (Factors of Production) ️: The basic categories of inputs used to produ...
Economics for Today by Irvin B. Tucker
Chapter 1: Introduction to Economics
1. Scarcity ✔️: The condition in which human wants are forever greater than the available supply of
time, goods, and resources.
2. Resources (Factors of Production) ✔️: The basic categories of inputs used to produce goods and
services: land, labor, and capital.
- Land ✔️: Any natural resources provided by nature that are used to produce goods or services.
- Labor ✔️: The mental and physical capacity of workers to produce goods and services.
- Entrepreneurship ✔️: The creative ability of individuals to seek profits by taking risks and combining
resources to produce innovative products.
- Capital ✔️: A human-made good used to produce other goods and services.
3. Economics ✔️: The study of how society chooses to allocate its scarce resources to produce goods
and services to satisfy unlimited wants.
4. Macroeconomics ✔️: The branch of economics that studies decision making for the economy as a
whole.
5. Microeconomics ✔️: The branch of economics that studies decision making by a single individual,
household, firm, industry, or level of government.
,6. Model ✔️: A simplified description of reality used to understand and predict the relationship
between variables.
7. Ceteris Paribus ✔️: A Latin phrase meaning "all other things remain unchanged" while analyzing
certain variables.
8. Positive Economics ✔️: An analysis limited to statements that are verifiable.
9. Normative Economics ✔️: An analysis based on value judgments.
### Chapter 1 Appendix
10. Direct Relationship ✔️: A positive association between two variables.
11. Inverse Relationship ✔️: A negative association between two variables.
12. Slope ✔️: The ratio of the change in the variable on the vertical axis to the change in the variable on
the horizontal axis.
13. Independent Relationship ✔️: A zero association between two variables.
### Chapter 2: Opportunity Cost and Production
14. Opportunity Cost ✔️: The best alternative sacrificed for a chosen alternative.
,15. Marginal Analysis ✔️: An examination of the effects of additions to or subtractions from a current
situation.
16. Production Possibilities Curve ✔️: A curve showing the maximum combinations of two outputs an
economy can produce in a given time period.
17. Technology ✔️: The body of knowledge applied to how goods are produced.
18. Law of Increasing Opportunity Costs ✔️: The principle that the opportunity cost increases as
production of one output expands.
19. Economic Growth ✔️: The ability of an economy to produce greater levels of output, represented
by an outward shift of its production possibilities curve.
20. Investment ✔️: The accumulation of capital, such as factories, machines, and inventories used to
produce goods and services.
### Chapter 3: Demand and Supply
21. Law of Demand ✔️: There is an inverse relationship between the price of a good and the quantity
buyers are willing to purchase.
22. Demand ✔️: A curve or schedule showing various quantities of a product consumers are willing to
purchase at possible prices during a specified period.
23. Change in Quantity Demanded ✔️: A movement between points along a stationary demand curve.
24. Change in Demand ✔️: An increase or decrease in quantity demanded at each price.
, 25. Normal Good ✔️: A good where there is a direct relationship between changes in income and its
demand.
26. Inferior Good ✔️: A good with an inverse relationship between changes in income and its demand.
27. Substitute Good ✔️: A good that competes with another good for consumer purchases.
28. Complementary Good ✔️: A good that is jointly consumed with another good.
29. Law of Supply ✔️: There is a direct relationship between the price of a good and the quantity sellers
are willing to offer.
30. Supply ✔️: A curve showing the quantities of a product sellers are willing to produce at possible
prices.
31. Change in Quantity Supplied ✔️: A movement between points along a stationary supply curve.
32. Change in Supply ✔️: An increase or decrease in quantity supplied at each price.
33. Market ✔️: Any arrangement in which buyers and sellers interact to determine the price and
quantity exchanged.
34. Surplus ✔️: A market condition where the quantity supplied is greater than the quantity demanded.
35. Shortage ✔️: A market condition where the quantity supplied is less than the quantity demanded.
36. Equilibrium ✔️: The condition where quantity demanded and quantity supplied are equal.
37. Price System ✔️: A mechanism that uses supply and demand forces to create equilibrium.
### Chapter 3 Appendix
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