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| Large numbers of buyers and sellers of a defferentiated product |
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| Large number of buyers but only one seller |
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| A favorable effect on one or more When the demand for an input item depends mainly on teh demand for the end product it is used to create |
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| A favorable effect on one or more people that emanates from a different person or firm |
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| An improvement in production technology leads to: |
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Definition
| an increase in the supply of the good |
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| unemployment lurks during |
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| The author of the theory of comparative advantage is |
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| bad money drives out good |
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| The three distinct systems as per principles of economics |
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Definition
| Capitalism, Socialism and mixed economy |
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| Adam Smith's "Wealth of Nations" taught |
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Definition
| Countries should export goods they can make cheaply and import goods that would be expensive to create |
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| Principle of relative advantage |
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| A country should take into account which exports would create the most profit |
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| The grosws psychological satisfactoin a customer receives from consuming a number of goods |
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| The psychological satisfaction a customer felt while consuming the most recent unit of a product |
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| Law of diminishing marginal utility |
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| After consuming a certain amount of goods, a customer experiences diminished satisfaction from each good |
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| A product's value is higher when demand for the product is high and supply is low |
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| When a market wants more of a product that producers are willing to provide |
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| When there is more of a product than the market wants to consume |
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| Th edifference between the max. a consumer would pay for a product and the actual price paid in the market |
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| Percentage change in the quantity demanded by the percentage change in the price |
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| the amount of mental and physical effort put in and the sacrifices made to produce the commodity |
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| cash payments made for goods or services |
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| the total sum of all factors of production in producing the product |
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| equation used to find the marginal revenue |
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Definition
| MR=change in total revenue (TR)/change in units sold (U) |
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Definition
| A market with a large number of buyers and sellers of homogenous set of goods |
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| The characteristics of fixed-costs tell us that |
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Definition
| They are only fixed in the short run |
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| The practice of keeping workers who are not needed |
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| In a Lorenz curve, if the bow is larger it denotes that |
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Definition
| A greater degree of inequality of income exists |
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| A perfectly competitive market needs |
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Definition
| all benefits of a good to go to consumers |
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| An industry under perfect competition has |
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Definition
| so many buyers and sellers that none can influence the price |
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| Demand curve slopes which way? |
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| Who does a moderate rate of inflation harm? |
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Definition
| people living on fixed incomes |
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