Name: Metric N Aldossary
ID: 200800130
Course: Introduction to Micro Economics
Assignment “I”
Benefit: It is the positive gain of something or the pleasure that brought by something.
Economically it is the most that a person willing to give up to get something.
Capital: the durable goods like machines and buildings that are used to produce goods
and services. The return on capital is Interest Rate.
Economic model: is a description of some aspect of the economic world that includes
only those features that are needed for the purpose at hand.
Economics: Is the social science that studies the choices that individuals, businesses,
governments and entire societies make as they cope with scarcity and the incentives that
influence and reconcile those choices.
Efficiency: It means how to use your resources in the best way to maximize your
production without wasting your resources.
Entrepreneurship: Is the human resource that organizes labor, land and capital, also
coming up with ideas about what and how to produce, making decisions and bear the
risks.
Factors of production:
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Land
Labor
Capital
Entrepreneurship
Goods and services: Are the objects that people value and produce to satisfy human
wants.
Human Capital: Is the knowledge and skill that people obtain from education on the job.
Incentive: Is a reward that encourages an actor or a penalty that discourage one.
Interest: It is the capital gain.
Labor: physical or mental human effort in producing and running the work, the return is
Wages.
Land: which include all natural resources, the return on land is rent.
Macroeconomics: Is the second branch of economics; it focuses on the general economic
of the countries.
Margin: It is the point that you should select when you are studying to do something
Marginal benefit: is the benefit that arises from an increase in an activity.
Marginal cost: The opportunity cost of increasing in an activity.
Microeconomics: Is the small branch of economics; it focuses on individual entities such
as, markets, firms, and households.
Opportunity cost: is the cost of any activity measured in terms of the value of the next
best alternative. (How many should you give up from A to get B?)
Preferences: It is what people like and prefer or wish to get.
Profit: It is what entrepreneurship earns.
Rational Choices: Is one that compares costs and benefits and achieves the greatest
benefits over cost for the person who is making the choice.
Rent: The return of the land
Scarcity: Is that economic resources in fact are limited in the short run. On the other side
the human wants are unlimited.
Self-interests: When you are thinking in a choice for our own benefit and not thinking
too much about how it affects others.
Social-interests: It is when the choice is beneficial for the society with efficient usage of
resources.
Tradeoff: it is when you decide to do something you give up something else like if you
want to buy A you must give up B because of your budget or other reason.
Wages: It is what labor earns.
Absolute advantage: the person who has the gratest productivity than others has the
absolute advantage.
Comparative advantage: we can say that the person got comparative advantage on
something when he is able to run it with the lowest opportunity cost possible.
Capital Accumulation: a growth in capital resources like human capital or technology.
Economic growth: you will have economic growth when you are able to produce more (
your maximum production is 10 pizza + 20 cola before economic growth, after growth it
is 15 pizza + 30 cola)
Technological change: is finding better methods of production that save time or lower
the cost and helps you to produce more.
Allocative efficiency: it is producing goods with the lowest cost possible and gets the
best benefit.
Marginal cost: the marginal cost of product “A” is the opportunity cost of producing
one more unit of it.
Marginal benefit: is the benefit of consuming or buying one more unit of the product or
service.
Marginal benefit curve: this curve is used to study the preferences and shows the
relationship between the marginal benefit and the quantity consumed.
Preferences: it is what people like and dislike
Firm: a business unit which has the productivity factors to produce goods or services.
Market: it is arrangement between buyers and sellers to trade goods with goods or goods
with money.
Money: is any token or thing that accepted as mean of payment “paper money, coins or
gold”
Property rights: it is social arrangement that gives rules for ownership.
Opportunity cost: is the value of the good that you want to alteration or you want to
give it up for the alternative.
Production efficiency: it is producing goods or providing services with lowest cost and
using all your resources without wasting any of it.