Download Assignment I Haitham F. AlMubarak 200600045 Introduction to

Assignment I
Haitham F. AlMubarak
200600045
Introduction to Macroeconomics
Section 101
Summer 2011/2012
Dr. Mohammad Magablei
Chapter 1
Scarcity:
The distinguishing characteristic of an economic good.
Macroeconomic:
Analysis dealing with the behavior of the economy as a whole.
Normative Economics:
What must to be (value judgments or goals) of public policy.
Fallacy of Composition:
The fallacy of assuming that what hold for individuals also holds for the group or
the entire system.
Citres Parebus:
Holding other things constant.
Capitalistic:
Concerning to capital or capitalists, founded on or believing in capitalism.
Inputs:
Commodities or services used by firms in their production process.
Production Possibility Frontier (PPF):
A graph showing the menu of goods that can be produced by an economy.
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Chapter 2
Market:
An arrangement whereby buyers and sellers interact to determine the prices an
quantities of a commodity.
Individual Hand:
A concept introduced by Adam Smith in 1776 to describe the paradox of laissezfair market economy.
Division of Labor:
A method of organizing production whereby each worker specializes in a part of
the productive process.
Capital:
In economic theory, one the triad of productive inputs (land, labor, and capital).
Equity:
The monetary value of a property or business beyond any amounts owned on it in
mortgages, claims, liens, etc.
Economic Growth:
An increase in the total output of a nation over time.
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Chapter 3
Quantity Demanded:
It is a shift in the demand curve to the right.
Demand Law:
All other factors being equal, as the price of a good or service increases, consumer
demand for the good or service will decrease and vice versa.
Quantity Supply:
The quantity supplied depends on the price level at any given time in the market.
Supply Curve:
A schedule showing the quantity of a good that suppliers in a given market desire
to sell at each price, holding other things equal.
Determinants of Supply:
Input prices, Technology, and Number of producers are all considered to be
determinants of supply.
Equilibrium Quantity:
The quantity that balances supply and demand. On a graph it is the quantity at
which the supply and demand curves intersect.
Inferior Good:
A good whose consumption goes down as income increases.
Complementary Goods:
Products that should be consumed together, like “camera & film”, “petrol &
vehicles”, etc.
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