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| is the study of scarcity and choice |
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| is decisions by individuals about what to do, which necessarily involve decisions about what not to do |
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| The decisions of individual producers and consumers largely determine what, how, and for whom to produce, with little goverment involvement |
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| is a system for coordinating a society's productive and consumptive activities |
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| is anything that can be used to produce something |
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| refers to all resources that come from nature, such as minerals, timber and petroleum |
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| refers to manufactured goods used to make other goods and services |
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| describes the efforts of entrepreneurs in organizing resourse for production, taking risks to create new enterprises, and inovating to develop new products and production proccesses |
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| resource is not availible in sufficent quantities to satisfy all the various ways a society wants to use it |
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| What you must give up in order to get it |
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| is the study of how people make decisions and how those desicions interact |
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| is concerned with the overall ups and downs in the economy |
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| are economic measures that summarize data across many different markets |
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| is the branch of economic anaylsis that describes the way the economy actually works |
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| makes perscriptions about the way the economy should work |
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| is the short run alternations between economic downturns, and economic upturns |
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| is a very deep and prolonged downturn |
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| are periods of economic downturns when output and employment are falling |
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| or recoveries are periods of economic uturns when output and employment are rising |
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| is the number of people currently employed in the economy |
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| are the number of people who are activley looking for work but aren't currently employed |
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| is equal to the sum of employment and unemployment |
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| is the percentage of the labor force unemployed |
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| is the quantity of goods and services produced |
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| is the economy's total production of goods and services for a given time period |
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| A rising in overall price level |
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| a falling in overall price level |
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| when the aggregatedprice level is changing only slowly |
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| is an increase in the maximum amount of goods and services an economy can produce |
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| is a simplified representation used to better understand a real-life situation |
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| Other things equal Assumption |
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| means that all other relevant factors remain unchanged |
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| when ou give up somthing in order to have something else |
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| Production Possbility Frontier |
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| illustrates the trade offs facing an economy that produces only two goods. It shows the maximum quantity of one good that can be produced for each possible quantity of the other good produced |
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| if there is no way to make anyone better off without making at least one person worst off |
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| is the technical means for producing goods and services |
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| they produce goods and services to others and recieve goods and services in exchange |
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| people can get more of what they want through trade than they could if they tried to be self-suffcient |
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| each person engages in the task that he or she is good at preforming |
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| have one in producing a good or service if the oppurtunity cost for producing is lower for that individual than other people |
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| has this if in producing a good or service if he or she can make more of it with a given amount of time and resources than anyone else |
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| is a market in which there are many buyers and sellers of the same goods or services, none of whom can influence the price at which the goods or services is sold |
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| is a model of how competitive markets work |
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| shows how much of a good or service consumers will be willing to buy at different prices |
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| is the actual amount of a good or service consumers are willing to buy at some specific price |
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| is a graphical representation of a demand schedule. It shows the relationship quantity demanded and price |
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| sasys that a higher rice for a good or service, all other things being equal, leads people to demand a smaller quantity of that good or service |
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| is a shift of the demand curve, which changes the quantity demanded at any given price |
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| Movement along the demand curve |
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| is a chnge in the quantity demanded of a good that is the result in a change of that good's price |
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| if a rise in the price of a goods lead to an increase in the demand for another good |
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| if a rise in price of one good leads to a decrease in the demand of another good |
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| if income rises the demand should rise |
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| when there is a rise in income and the demand of the good decreases |
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| illustrate the relationship between quantity demanded and the price for and individual consumer |
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| is the acutal amount of a good or service producers are willing to sell at some specific price |
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| shows how much of a good or service will supply at different prices |
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| shows the realtionship betwee quantity supplied and price |
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| says that other things being equal the rice and quantity supplied of a good are positivley related |
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| is a shift of the supply surve, which changes the quantity supplied at any given price |
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| Movement along the supply curve |
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| is a change in the quantity supplied of a good that is a result of a change in that good's price |
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| is anything that is used to produce a good or service |
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| illustrates the realtionship between quantity supplied and price for an idividual producer |
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| when no indivdual would be better off doing something different. (Balanced) |
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| is the price at which when the quantity demanded is equal to the quantity supplied |
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| Is the quantity of the good and sold at that price |
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| there is a surplus of a good when the quantity supplied exceeds the quantity demanded. Occurs when the price is above its equilibrium level |
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| when the quantity demanded exceeds the quantity supplied. occurs when the price is below the euilibrium level |
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| are legal restrictions on how high or low a market price can go |
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| a maximum price sellers are allowed to charge for a good or service |
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| a minimum price buyer are required to pay for a good or service |
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| ineffiecient allocations of sales among sellers |
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| those who would be willing to sell that good at the lowest price are not always those who manage to sell it |
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| inefficietly high quality |
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| sellers offer high-quality goods at a higher pric, even though buyer would perfer a lower quality t a lower price |
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| Quantity Control or Quota |
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| is an upper limit on the quantity of some good that can be bought or sold |
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| gives its owner the right to supply a good or service |
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| of a givn quantity is the price at which consumers will demand that quantity |
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| of a given quantity is the price at which producers will supply that quantity |
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| the price paid by the buyers ends up being higher than that recieved by sellers |
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| the earnings that accure to the license holder form ownership of the right to sell that good |
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| is the lost gains associated withtransactions that do not occur due to market intervention |
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