Home > Flashcards > Economics > Ch. 1 Test I Vocab

Details Title: Ch. 1 Test I Vocab Description: Vocab Total Flash Cards: 13 Created: 05/18/2005 20:36:36	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Inflation Definition Increase in overall level of price Term Market Failure Definition When the market does not allocate resources efficiently Term Externality Definition Impact of an action on a bystander Term Scarcity Definition Limited resources, Unlimited Wants Term Invisible Hand Definition Self-interested market participants unknowingly maximize society's welfare Term Market Economy Definition Household and firms determine the allocation of resources Term Market Power Definition Ability to substantially influence market price Term Efficiency Definition Getting the most from scarce resources Term Economics Definition Study of how society manages its scarce resources Term Productivity Definition Amount of goods and services produced per hour by a worker Term Opportunity Cost Definition Whatever is given up to get something else Term Marginal Changes Definition Incremental adjustments Term Equality Definition Distributing output "fairly" among society's members