Term
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Definition
| one person can produce more foods with the same amount of resources than another. OR. The ability to produce a good using fewer inputs than another producer. |
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Definition
| fluctuations in economic activity, such as employment and production. |
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Term
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Definition
| a visual model of the economy that shows how dollars flow though markets among households and firms. |
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Term
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Definition
| a person can perform the activity at a lower opportunity cost. OR. The ability to produce a good at a lower opportunity cost than another producer. |
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Term
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Definition
| a person can perform the activity at a lower opportunity cost. OR. The ability to produce a good at a lower opportunity cost than another producer. |
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Term
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Definition
| a market in which there are many buyers and many sellers so that each has a negligible impact on the market price. |
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Term
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Definition
| two goods for which an increase in the price of one leads to a decrease in the demand for the other. |
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Term
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Definition
| Spending by households on goods and services, with the exception of purchases of new housing. |
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Term
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Definition
| a graph of the relationship between the price of a good and the quantity demanded. |
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Term
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Definition
| a table that shows the relationship between the price of a good and the quantity demanded. |
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Term
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Definition
| a table that shows the relationship between the price of a good and the quantity demanded. |
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Term
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Definition
| the study of how society manages its scarce resources. |
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Term
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Definition
| the property of society getting the most it can from its scarce resources |
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Term
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Definition
| the property of distributing economic prosperity uniformly among the members of society. |
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Term
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Definition
| the price that balances quantity supplied and quantity demanded. |
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Term
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Definition
| the quantity supplied and the quantity demanded at the equilibrium price. |
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Term
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Definition
| a situation in which the market place has reached the level at which quantity supplied equals quantity demanded. |
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Term
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Definition
| goods produced domestically and sold abroad. |
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Term
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Definition
| the impact of one person's actions on the wellbeing of a bystander. |
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Term
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Definition
| a measure of the price level calculated as the ratio of nominal GDP to REal GDP times 100. |
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Term
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Definition
| spending on goods and services by local, state, and federal governments. |
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Term
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Definition
| spending on goods and services by local, state, and federal governments. |
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Term
| Gross Domestic Product (GDP) |
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Definition
| the market value of all final goods and services produced within a country in a given period of time. |
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Term
| Gross Domestic Product (GDP) |
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Definition
| the market value of all final goods and services produced within a country in a given period of time. |
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Term
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Definition
| goods produced abroad and sold domestically. |
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Term
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Definition
| something that induces a person to act. |
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Term
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Definition
| a good for which, other things equal, an increase in income leads to a decrease in demand. |
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Term
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Definition
| spending on capital equipment, inventories, and structures, including household purchases of new housing. |
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Term
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Definition
| ceteris paribus. As price increases, quantity demanded decreases and as price decreases, quantity demanded increases. OR. The claim that, other things equal, the quantity demanded of a good falls when the price of the good rises. |
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Term
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Definition
| the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for the good into balance. |
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