Details Title: 9wks Exam Description: Economics Total Flash Cards: 23 Created: 03/25/2009 15:28:29		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Economics Flashcards
Cards in this set: Term Economics Definition the study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of scarce resources. Term Fundamental economic problem facing society is... Definition Scarcity Term Scarcity Definition the condition that results from society not having enough resources to produce all the things people would like to have. Term Utility Definition capacity to be useful and provide satisfaction. Term “There Is No Such Thing as a Free Lunch” Definition virtually everything has a cost, even if it seems we are getting it “free” Term Goods Definition an item that is economically useful or satisfies an economic want Ex: book, car, CD player... Term Service Definition worked that is performed for someone Ex: haircuts, home repair, form of entertainment Term Good vs. Service Definition a service is intangible, something that can't be touched Term Ceteris Parivus Definition “other things equal” Term 4 Factors of Production Examples: Definition →Land- “gifts of nature” →Capital- tools, equipment, machinery... →Labor- efforts, abilities, and skills →Entrepreneurs Term Income Effect Definition the change in quantity demanded because of a change in price that alters the consumers' real income. Term Substitution Effect Definition the change of quantity demanded because of the change in the relative price of the product. Term Complements Definition related goods the use of 1 increases the use of the other Term Something that happens to cause the demand curve to shift is.... Definition Change in Demand Term Change in demand Definition people are now willing to buy different amounts of the product at the same price. ....Why? →Consumer Income →Consumer Taste →Price of related good → No. of consumers Term Market Demand Curve vs. Individual Demand Curve Definition The individual demand curve shows quantity demanded at every price that might prevail in the market. And the market demand curve shows quantity demanded by everyone who is interested in purchasing the product. Term Appears as a movement along the demand curve is... Definition change in quantity demanded Term The Demand Curve is shown graphically as a.... Definition downward slope Term The Law of Demand Definition states that the quantity demanded of a good or service varies inversely with its price. Term The Law of Supply Definition the principle that suppliers will normally offer more for sale at a high price and less at a lower price Term The Supply Curve is shown graphically as a... Definition upward slope Term Effect of subsidy in regards to Supply. Definition If the producers inventory is taxed the cost of production goes up. This causes the supply curve to SHIFT LEFT. Or, if taxes go down supply then increases and the supply curve SHIFTS RIGHT. Term Is represented by a movement along the suppl curve... Definition change in quantity supplied