produced when resources are instead used to make a particular product. The use of the minimum necessary resources economic efficiency to obtain the socially optimal amounts of goods and services; entails both and productive efficiency allocative efficiency. economic growth (1) An outward shift in the production possibilities that results from an increase in resource supplies or curve quality or an improvement in (2) an increase of real technology; output or real output per capita. (gross domestic product) International migrants who have moved economic immigrants to a country from another to obtain economic gains such as better employment opportunities. economic investment (See investment.) economic law An that has been tested and retested economic principle and has stood the test of time. economic model A simplified picture of economic reality; an abstract generalization. economic perspective A viewpoint that envisions individuals and institutions making rational decisions by comparing the marginal benefits and marginal costs associated with their actions. economic policy A course of action intended to correct or avoid a problem. A widely accepted generalization about the economic principle economic behavior of individuals or institutions. economic profit The of a firm less its total revenue economic costs (which include both and also called explicit costs i mplicit costs); and “pure profit” “above-normal profit.” economic regulation (See and industrial regulation social regulation.) economic rent The price paid for the use of land and other natural resources, the supply of which is fixed (perfectly inelastic). economic resources The and land, labor, capital, entrepreneurial that are used in the production of goods and services; productive ability agents; factors of production. economics The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity. A particular set of institutional arrangements economic system and a coordinating mechanism for solving the economizing G-8 Glossary problem; a method of organizing an economy, of which the market and the are the two general types. system command system A statement of a cause-effect relationship; economic theory when accepted by all or nearly all economists, an economic principle. economies of scale Reductions in the of producing average total cost a product as the firm expands the size of plant (its output)
produced when resources are instead used to make a particular product. economic efficiency The use of the minimum necessary resources to obtain the socially optimal amounts of goods and services; entails both productive efficiency and allocative efficiency. economic growth (1) An outward shift in the production possibilities curve that results from an increase in resource supplies or quality or an improvement in technology; (2) an increase of real output (gross domestic product) or real output per capita. economic immigrants International migrants who have moved to a country from another to obtain economic gains such as better employment opportunities. economic investment (See investment.) economic law An economic principle that has been tested and retested and has stood the test of time. economic model A simplified picture of economic reality; an abstract generalization. economic perspective A viewpoint that envisions individuals and institutions making rational decisions by comparing the marginal benefits and marginal costs associated with their actions. economic policy A course of action intended to correct or avoid a problem. economic principle A widely accepted generalization about the economic behavior of individuals or institutions. economic profit The total revenue of a firm less its economic costs (which include both explicit costs and i mplicit costs); also called “pure profit” and “above-normal profit.” economic regulation (See industrial regulation and social regulation.) economic rent The price paid for the use of land and other natural resources, the supply of which is fixed (perfectly inelastic). economic resources The land, labor, capital, and entrepreneurial ability that are used in the production of goods and services; productive agents; factors of production. economics The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity. economic system A particular set of institutional arrangements and a coordinating mechanism for solving the economizing G-8 Glossary problem; a method of organizing an economy, of which the market system and the command system are the two general types. economic theory A statement of a cause-effect relationship; when accepted by all or nearly all economists, an economic principle. economies of scale Reductions in the average total cost of producing a product as the firm expands the size of plant (its output)
honors_textbook_glossary.docx