micro chapter 1

1. a simplified description of reality used to understand and predict the relationship between variables
4. one condition or event necessarily leads to another
5. type of economics that focuses on "what is"
6. natural resources used to produce a good or service; not just "dirt"
10. branch of economics that looks at "the trees instead of the forest"
12. also called inputs or factors of production
13. limited although not necessarily small in quantity
14. two events are noted as happening at the same time

2. creative ability to take risks and seek profits by successfully combining all other resources
3. majored in economics
7. study of scarcity
8. does not produce goods and services
9. paribus all other factors held constant
11. a human-made good used to produce other goods and services