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Econ 101 Flashcards
Intro to Economics Flashcards
17
Economics
Undergraduate 1
01/15/2010

Additional Economics Flashcards

 


 

Cards

Term
capital
Definition
the produced means of production, something you make to use to make something else
Term
The 3 factors of production
Definition
Land, labor, capital
Term
Market
Definition
an area over which buyers to sellers negotiate the exchange of a well defined commodity
Term
Product market
Definition
market for goods & services for final user (consumer-ex: gas, fillings @ dentist)
Term
Factor markets
Definition
exchanging services used in production
Term
Free market economy
Definition
market economy in which firms & households have primary influence over what is bought & sold
Term
Opportunity cost
Definition
foregone value of the next best alternative that is not chosen
Term
3 questions economics attempts to answer
Definition
1) What is to be produced?
2) How should these goods be produced? (Goods & services-commodities)
3) How much should be produced? How much should be distributed to each member of the economy?
Term
choice set/opportunity set
Definition
set of options that is defined and limited by a budget constraint
Term
real income
Definition
the set of opportunities to purchase real goods and services available to a household as determined by prices and money income
Term
utility
Definition
the satisfaction a product yields
Term
marginal utility
Definition
(MU) the additional satisfaction gained by the consumption or use of one more unit of a good or service
Term
total utility
Definition
the total amount of satisfaction obtained from consumption of a good or service
Term
law of diminishing marginal utility
Definition
the more of any one good consumed in a given period, the less satisfaction generated by consuming each additional unit of the same good
Term
queuing
Definition
waiting in line as a means of distributing goods and services: a nonprice mechanism
Term
favored customers
Definition
those who receive special treatment from dealers during situations of excess demand
Term
ration coupons
Definition
tickets or coupons that entitle individuals to purchase a certain amount of a given product per month
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