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| Desired; not necessarily essential to survival. |
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| Land, labor, capital, entrepreneurship and goods/services. |
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| Study of how people seek to satisfy their needs and wants by making choices |
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| Limited quantities of resources to meet unlimited wants. |
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| A central authority is in command of the economy; centrally planned economy. |
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| Relies on habit, custom or ritual to decide questions of production and consumption of goods/services. |
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| Doctrine stating government shouldn;t intervene in the marketplace. |
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| Self-regulating nature of the marketplace. |
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| Decisions on production and consumption of goods and services are based on voluntary exchange in markets. |
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| the force that encourages people and organizes to improve their material well-being. |
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| People have the rights and privilege to control their possessions as they wish. |
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| People may decide what and when they wanna buy and sell. |
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| shared good/service for which it'd be impratical to make consumers pay individually and to exclude nonpayers. |
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| Market doesn't distribute resources efficiently |
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| Graphic representation of a demand schedule |
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| demand that isn't very sensitive to change in price. |
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| consumers buy more of a good if its price decreases and less when its price increases. |
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| As price is lowered, total revenue rises; vice-versa. |
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| Movement along a demand curve |
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| Increase in demand appears as a shift to the right; vice-vera. |
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| Tendency of suppliers to offer more of a good at a higher price. |
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| Fixed costs plus variable costs |
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| rises or falls depending on how much is produced. |
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| doesn't change no matter how much a good is produced. |
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| amount of goods available |
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| doesn't change no matter how much of a good is produced. |
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| Max. price that can be legally charged for a good or service. |
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| minimum price for a good or service |
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| point at which quantity demanded and supplied are equal. |
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| quantity supplied is greater than quantity demanded; excess supply |
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| excess demand; quantity demanded is more than quantity supplied. |
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| a few large firms dominate a market |
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| large number of firms produce the same product |
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| series of competitive price cuts lowering the market price below the cost of production |
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| two or more companies into a single firm. |
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| market dominated by one single seller |
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| business owned/managed by a single person |
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| partners share equally in both responsibility and liability. |
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| legal entity owned by individial stockholders. |
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| combo of two or more firms competing in the same market with the same good or service |
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| comibation of two ore more firms involved in different stages of producing the same good or service. |
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| all nonmilitary people who're employed or unemployed. |
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| labor requiring specialized skills and training. |
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| unofficial invisible barrier that prevents woman and mintorities from advancing in business dominated by white men. |
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| process in which union and company representatitves meet to negotiate a new labor contract |
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| tax on the dollar value of a good or service being told |
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| GDP: total value of all final goods and services produced in a particular economy, the dollar value of all final goods and services produced in a county's borders in a given year |
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| period of macroeconomic expanion followed by a period of contraction |
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| national income minus(-) firm's reinvested profits, taxes and SS taxes plus(+) other household income equals(=) personal income |
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| disposable personal income |
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| how much money people actually have to spend after they pay their taxes |
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| CPI: determined by measuring the price of a standard group of goods meant to represent the typical "market basket" of a typical urban consumer. |
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| people take time to find a job |
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| occuers as a result of harvest schedules or vacations, or when induestries slow/shut down for a season. |
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| occurs when workers' skills don't match the jobs that're available.` |
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| rises during economic downturns and falls when the economy improves. |
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| wants a job but has given up looking |
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| bank that belongs to the Federal Reserve System |
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| through this, millions of consumers receive info. about retail credit terms, auto loans and home mortgages each year. |
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| an increase in reserve requirements causes banks to increase reserves and when banks reduce lending, causing money supply to contract. |
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| rate the Federal Reserve charges for loans to commercial banks |
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| currency and deposits used to meet the reserve requirement |
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| ability to produce more of a given product using a given amount of resources. |
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| ability to produce a procudt most efficiently given all the other products that could be produced. |
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| limit on the amount of a good that can be allowed into a country |
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| result of a country importing more than it exports |
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| economic law stealing that consumers buy more of a good when its price increases |
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| tendency of suppliers to offer more of a good at a higher price. |
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| - pueden take advantage of their market power and charge highh prices |
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| Other things to know re law of supply: determinants? |
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| 1. change in cost production, 2. change in tech. 3. number of sellers, 4. future expectations, 5. govermental policies, 5. taxes & subsidies |
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| determinants of demand... |
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1. consumer tastes and preferences
2. income
3. substitutes and complements
4. population
5. Future price expectations |
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| creeping (1-3%) per year, galloping (100-300%) per year, hyperinflation (500%+) per year. |
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| full employment (lowest possible unemployed rate with the economy growing and all facrors of production being used efficiently |
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| voluntarily leaving the workforce and intending to reenter |
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| worker has a job, but is prevented by seasonal conditions from working |
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| as business cycle rises, the demand for certain products incerreases and more people are hired to produce them. When cyclegores on the downside, demand decreases, product drops and people are laid off. |
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| the job itself has been eliminated due to long term changes in the economy or the industries may change the way they operate. |
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quota: limit on the amount of a good that can be allowed into a country
Tariff: tax on imported goods. |
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| manage the nation's money supply, strengthen the US standing in the world economy, strike a balance between private interests of banks and the centralized responsibility of government. Serve as a central bank for the US. |
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| Frictional, seasonal, structural, cyclical and full employment. |
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