需求的几个关键名词.docVIP

关键名词 Key Concepts in ECONOMICS scarcity the limited nature of society’s resources economics the study of how society manages its scarce resources HOW PEOPLE MAKE DECISIONS PRINCIPLE #1: PEOPLE FACE TRADEOFFS PRINCIPLE #2: THE COST OF SOMETHING IS WHAT YOU GIVE UP TO GET IT oppor tunity cost whatever must be given up to obtain some item marginal changes small incremental adjustments to a plan of action PRINCIPLE #3: RATIONAL PEOPLE THINK AT THE MARGIN PRINCIPLE #4: PEOPLE RESPOND TO INCENTIVES HOW PEOPLE INTERACT PRINCIPLE #5: TRADE CAN MAKE EVERYONE BETTER OFF PRINCIPLE #6: MARKETS ARE USUALLY A GOOD WAY TO ORGANIZE ECONOMIC ACTIVITY market economy an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services PRINCIPLE #7: GOVERNMENTS CAN SOMETIMES IMPROVE MARKET OUTCOMES market failure a situation in which a market left on its own fails to allocate resources efficiently externality the impact of one person’s actions on the well-being of a bystander market power the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices HOW THE ECONOMY AS A WHOLE WORKS PRINCIPLE #8: A COUNTRY’S STANDARD OF LIVING DEPENDS ON ITS ABILITY TO PRODUCE GOODS AND SERVICES Productivity：the amount of goods and services produced from each hour of a worker’s time PRINCIPLE #9: PRICES RISE WHEN THE GOVERNMENT PRINTS TOO MUCH MONEY Inflation：an increase in the overall level of prices in the economy PRINCIPLE #10: SOCIETY FACES A SHORT-RUN TRADEOFF BETWEEN INFLATION AND UNEMPLOYMENT circular-flow diagram:a visual model of the economy that shows how dollars flow through markets among households and firms THE CIRCULAR FLOW. This diagram is a schematic representation of the organization of the economy. Decisions are made by households and firms. Households and firms interact in the markets for goods and services (where households are buyers and firms ar