ECON 1312: Introduction to Microeconomics
Dr. Mohammad Magableh
Section: 103
Name: Ahmed Abdulaziz Al-Ghanim
ID: 201100581
Major: Human Resource Management
Assignment 1: Defining Concepts
Chapter-1
1 Benefit: any factor that add value to the organization.
Example: revenue, profit.
2 Capital: the combination equipment, building, machines, government
and other assets.
3 Entrepreneurship: the combination of the man power that organize
labor and capital.
4 Economic model: is a model has an economical factors that everybody
knows.
Example: STC, Hyundai.
5 Economics: it is a science that study the individuals, businesses and
government from a social aspect.
6 Microeconomics: it is a study of businesses and government etc…. as a
part.
Example: why the students of PMU like coffee ?
7 Macroeconomics: it is a study of the performance of the national
economy and the global economy.
8 Efficiency: number of finished goods over time.
Example: how many Toyota car produce per day.
9 Factor of production: is categorized as per the following land, capital,
labor and entrepreneurship.
Example: the less labor and capital will led to low production.
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10 Goods and services: is the final product for any organization.
Example: services; airplane ticket – goods; supermarket product like
cola.
11 Human capital: is the total of people experience and knowledge.
12 Opportunity cost: is the choice which will cost you more than other.
Example: Mercedes or BMW.
13 Preferences: which choice you like more than other.
Example: I like pepsi more than cola.
14 Profit: is the revenue minus total cost.
15 Rational choice: it is the choice of comparing the cost and benefit for
achieving the best choice.
16 Rent: is the amount of money that you receive after you give.
Example: a building to use.
17 Scarcity: is everything that we can not get.
Saudi Arabia .
Example: if I want to be king in
18 Self-interest: the best choice that you made for yourself.
19 Social interest: is the best choice that you made for the social with
two factor efficiency and equity.
20 Wages: is the amount of money that you receive after labor work.
Chapter-2
1 Absolute advantage: is the advantage that you can get for production
related two hours.
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2 Comparative advantage: is the activity that you perform with less
opportunity than other.
3 Allocative efficiency: when you produce goods and services with
lowest cost.
4 Economic growth: any improvement in any businesses, sector and
government etc.. which lead high production.
Example: UAE, Qatar before twenty years from now.
5 Capital accumulation: is the total for growth of all capitals.
6 Firm: any company has high number of goods and services.
Example: like PMU.
7 Market: any place which have buyer and seller to do businesses.
Example: stock market.
8 Money: is any amount you collect as payment and everybody accept it.
9 Property right: is the right of own.
Example: building.
10 Production efficiency: the ability to produce the maximum of goods
and services with less cost and time.
11 Production possibilities frontier: is the concept of production more
goods and services than the standard production by lowering one
production and increase the other.
12 Technological change: the improvement it happened to the goods and
services to be best.
Example: I phone one to five.
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Reference:
Text book
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