Assignment for June 2 Tuesday

Chapter 1

1. Economic resources
- Economic resources are the factors used in producing goods or providing services. In other
words, they are the inputs that are used to create things or help you provide services. Economic
resources can be divided into human resources, such as labor and management, and nonhuman
resources, such as land, capital goods, financial resources, and technology.
2. Economic system
- An economic system is a means by which societies or governments organize and distribute
available resources, services, and goods across a geographic region or country. Economic
systems regulate factors of production, including capital, labor, physical resources, and
entrepreneurs. An economic system encompasses many institutions, agencies, and other
entities.
3. Economics
- Economics is a social science concerned with the production, distribution, and consumption of
goods and services. It studies how individuals, businesses, governments, and nations make
choices on allocating resources to satisfy their wants and needs, trying to determine how these
groups should organize and coordinate efforts to achieve maximum output.
4. Empirical validation
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5. Entrepreneur
6. Free enterprise system
7. Function
8. Labor
9. Land
10. Luxury goods market
11. Basic needs
12. Capital
13. Normative economics
14. Positive economics
15. Right to private property
16. Theory/hypothesis
17. Variable
18. Wants
Chapter 2
19. Aggregate demand
20. Aggregate supply
21. Ceteris paribus
22. Demand
23. Demand curve
24. Demand function
25. Demand schedule
26. Directly proportional
27. Equilibrium point
28. Inversely proportional
29. Market
30. Movement along the curve
31. Non-price factors
32. Price
33. Price ceiling
34. Price floor
35. Shift of the curve
36. Supply
37. Supply function
38. Supply schedule
39. Surplus
Chapter 3
40. Arc elasticity
41. Coefficient of elasticity
42. Complementary goods
43. Cross elasticity of demand
44. Elasticity
45. Engel curve
46. Income elasticity of demand
47. Inferior goods
48. Normal goods
49. Price elasticity
50. Point elasticity
51. Prestige goods
52. Substitute goods
53. Total revenue
Chapter 4
54. Budget line
55. Convergence
56. Income effect
57. Indifference curve
58. Isocast line
59. Marginal rate of substitution ( MRS)
60. Marginal utility (MU)
61. Maslow’s Theory of motivation
62. Optimum combination
63. Paradox value
64. Reference groups
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65. Substitution effect
- The substitution effect is the decrease in sales for a product that can be attributed to
consumers switching to cheaper alternatives when its price rises. A product may lose market
share for many reasons, but the substitution effect is purely a reflection of frugality. If a brand
raises its price, some consumers will select a cheaper alternative. If beef prices rise, many
consumers will eat more chicken.
66. Total Utility (TU)
- Total utility is the aggregate summation of satisfaction or fulfillment that a consumer receives
through the consumption of goods or services.
67. Utility
- Utility is a term in economics that refers to the total satisfaction received from consuming a
good or service. Economic theories based on rational choice usually assume that consumers will
strive to maximize their utility. The economic utility of a good or service is important to
understand, because it directly influences the demand, and therefore price, of that good or
service. In practice, a consumer's utility is impossible to measure and quantify. However, some
economists believe that they can indirectly estimate what is the utility for an economic good or
service by employing various models.