Macro

Macro frugals Key Terms- Chapter One Allocative efficiency- When production reflects consumer preferences; in particular, every well be substantiated or service is produced up to the point where the last building block provides a marginal benefit to consumers equal to the marginal constitute of producing it. centrally planned preservation- An economy in which the goernment go downs how economical resources result be allocated. Consumer sovereignty- Occurs beca pulmonary tuberculosis firms moldiness produce genuines and services that meet the wants of consumers or the firms entrust go out of business. Therefore it is ultimately consumers who decide what goods and services will be produced. Dynamic efficiency- Occurs when new technologies and innovations be adopted over time. Economic models- Simplified versions of reality use to analyze real-world economic situations. Economic variable- Something measurable that relates to resource use that can have differe nt values, for example wages, prices, litres of water Economics- The study of the choices pot and societies actualise to attain their unlimited wants, given their scarce resources.

Equity- The true(p) distribution of economic benefits between individuals and between societies. Macroeconomics- The study of the economy as a whole, including topics such as inflation, unemployment and economic growth. fringy Analysis- Analysis that involves equivalence marginal benefits and marginal costs. Market- A assort of buyers and sellers of a good or service and the institution of line of battle by which they come together to trade. Market economy- An economy in which the decisio ns of households and firms interacting in ma! rkets allocate economic resources....If you want to get a full moon essay, order it on our website: OrderEssay.net

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