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Definition
| A system in which scarce resources are allocated among competing uses |
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Term
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| Resources used to produce goods and services; frequently divided into the basic categories of land, labour, and capital |
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Definition
| Tangible commodities, such as cars or shoes |
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| Intangible commodities, such as haircuts or medical care |
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| The act of making goods or services |
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| The act of using goods or services to satisfy wants |
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| The cost of using resources for a certain purpose, measured by the benefit given up by not using them in their best alternative use |
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| Production Possibilities Boundary |
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Definition
| A curve showing which alternative combinations of commodities can just be attained if all available resources are used efficiently; it is the boundary between attainable and unattainable output combinations |
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Definition
| The allocation of an economy's scarce resources of land, labour, and capital among alternative uses |
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| The study of the causes and consequences of the allocation of resources as it is affected by the workings of the price system |
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| The study of the determination of economic aggregates such as total output, the price level, employment, and growth |
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| The specialization of individual workers in the production of particular goods or services |
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| The breaking up of a process into a series of specialized tasks, each doe by a different worker |
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Definition
| An economic system in which goods and services are traed directly for other goods and services |
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| Transnational Corporations (TNCs) |
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Definition
| Firms that have operations in more than one country. Also called multinational enterprises (MNEs) |
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Definition
| An economy in which behaviour is based mostly on tradition |
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Definition
| An economy in which most economic decisions are made by a central planning authority |
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Definition
| An economy in which most economic decisions are made by private households and firms |
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Term
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Definition
| An economy in which some economic decisions are made by firms and households and some by the government |
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Definition
| A statement about what ought to be as opposed to what actually is |
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| A statement about what actually is (was or will be), as opposed to what ought to be |
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Definition
| Any well-defined item, such as the price or quantity of a commodity, that can take on various specific values |
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Definition
| A variable that is explained within a theory. Sometimes called an induced variable or a dependent variable. |
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Term
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Definition
| A variable that is determined outside the theory. Sometimes called an autonomous variable or an independent variable |
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Definition
| A term used in several related ways: sometimes for an abstraction designed to illustrate some point but not designed to generate testable hypotheses, and sometimes as a synonym for theory |
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| An average that measures change over time of such variables as the price level and industrial production; conventionally expressed as a percentage relative to a base period, which is assigned the value 100 |
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| A set of observations made at the same time across several different units (such as households, firms or countries) |
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Definition
| A set of observations made at successive period of time |
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Definition
| A graph of statistical observations of paired values of two variables, one measured on the horizontal and the other on the vertical axis. Each point on the coordinate grid represents the values of the variables for a particular unit of observation |
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Definition
| The amount of a good or service that consumers want to purchase during some time period |
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Definition
| A table showing the relationship between quantity demanded and the price of a commodity, other things being equal |
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Term
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Definition
| The graphical representation of the relationship between quantity demanded and the price of a commodity, other things being equal |
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Definition
| The entire relationship between the quantity of a commodity that buyers want to purchase and the price of that commodity, other things being equal |
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Term
| Substitutes in Consumption |
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Definition
| Goods that can be used in place of another good to satisfy similar needs or desires |
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Term
| Complements in consumption |
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Definition
| Goods that tend to be consumed together |
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Definition
| A change in the quantity demanded at each possible price of the commodity, represented by a shirt in the whole demand curve |
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Term
| Change in Quantity Demanded |
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Definition
| A change in the specific quantity of the good demanded, represented by a change from one point on a demand curve to another point, either on the original demand curve or on a new one. |
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Definition
| The amount of a commodity that producers want to sell during some time period |
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Definition
| A table showing the relationship between quantity supplied and the price of a commodity, other things being equal |
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Term
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Definition
| The graphical representation of the relationship between quantity supplied and the price of a commodity, other things being equal |
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Term
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Definition
| The entire relationship between the quantity of some commodity that producers wish to sell and the price of that commodity, other things being equal |
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Definition
| A change in the quantity supplied at each possible price of the commodity, represented by a shift n the whole supply curve |
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| Change in Quantity Supplied |
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Definition
| A change in the specific quantity supplied, represented by a change from one point on a supply curve to another point, either on the original supply curve or on a new one |
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Term
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Definition
| Any situation in which buyers and sellers can negotiate the exchange of goods or services |
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Definition
| A situation in which, at the given price, quantity demanded exceeds quantity supplied |
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Definition
| A situation in which, at the given price, quantity supplied exceeds quantity demanded |
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Definition
| The price at which quantity demanded equals quantity supplied. Also called the market-clearing price |
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Definition
| A price at which quantity demanded does not equal quantity supplied |
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Definition
| A situation in a market in which there is excess demand or excess supply |
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Term
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Definition
| The derivation of predictions by analyzing the effect of a change in some exogenous variable on the equilibrium |
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Definition
| The amount of money that must be spent to acquire one unit of a commodity. Also called money price |
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Term
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Definition
| The ration of the money price of one commodity to the money price of another commodity; that is, a ratio of two absolute prices |
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