Term
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Definition
| Land, Labor, Capital, Entrepeneurship |
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Term
| Production Possibilities Curve Bows Out because |
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Definition
| The increase in Opportunity Cost |
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Term
| Production possibilities Determinants |
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Definition
Increases in resource supplies
Advances in technology |
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Term
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Definition
| Illistrates the continuous and repetitive flow of goods and services, resources and money |
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Term
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Definition
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Term
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Definition
| Allocation of labor to make everyone as happy as possible |
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Term
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Definition
| The higher the price, the lower quantity demanded |
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Term
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Definition
Price of related goods
expected future prices
income
population
preferences of buyers |
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Term
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Definition
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Term
| change in quantity demanded |
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Definition
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Term
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Definition
| as price of goods increase quantity supplied of goods increases |
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Term
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Definition
price of factors of production(mainly Labor)
Price of related good
Expected future price
# of suppliers in market
Technology |
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Term
| Price elasticity of demand |
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Definition
| measure of how quantity demanded changes with change in price |
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Term
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Definition
| hardly effected with change in price e<1 |
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Term
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Definition
| highly effected by change in price e>1 |
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Term
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Definition
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Term
| Left of peak on Total revenue chart |
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Definition
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Term
| Right of peak in total revenue chart |
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Definition
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Term
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Definition
| If demand is inelastic, we must increase prices to increase total revenue |
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Term
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Definition
| shows if goods are complementary or substitute |
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Term
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Definition
| tells if a product is subject to loses if income changes |
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Term
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Definition
consumer happiness
expected max price-actual= consumer surplus |
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Term
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Definition
producer happiness
Expected min price-actual= producer surplus |
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Term
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Definition
| the lost surplus due to over/under production |
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Term
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Definition
when government thinks price is how low
causes overproduction |
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Term
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Definition
When government thinks prices is too high
Causes Underproduction |
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Term
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Definition
A detailed examination of specific economic units that make up an economic system
Making decisions for themselves |
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Term
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Definition
Making decisions for others or as a group
Big Picture |
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Term
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Definition
| The quantity and price that occurs when supply and demand meet |
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