Term
|
Definition
| Economic system based on private ownership and control of resources, known as private property rights, and coordination of resource-use decisions through markets. |
|
|
Term
|
Definition
| Economic system characterized by state ownership and/or control of resources and centeralized resource-use decision making. |
|
|
Term
|
Definition
| Economies that combine elements of the pure market and pure command economies. |
|
|
Term
|
Definition
| A nation which is in the process of replacing an economic system of command and control with one based on market priciples. |
|
|
Term
| Purely Competitive Market |
|
Definition
| A market in which there are a large number of mobile buyers and sellers of a standardized product. Futher, the price of the product is free to move up or down, and there are no obstacles preventing firms from entering or leaving the market. |
|
|
Term
| Purely Monopolistic Market |
|
Definition
| A market in which there is only one seller of a product. The monopolist has substantial control over the price and is often able to prevent potential sellers from entering the market. |
|
|
Term
| Imperfectly Competitive Markets |
|
Definition
| Markets that fall between the purely competetive and purely monopolistic extremes; they may exibit characteristics of either of these extremes. |
|
|
Term
|
Definition
| The quantity of the product that consumers are willing to purchase at various prices, other things being equal. The other thing that must remain equal are (1) the consumers' incomes, (2) the prices of goods related in consumption, (3) the consumers' tastes, (4) the consumers' expectations, and (5) the number of customers. |
|
|
Term
|
Definition
| The lower the price of the good, the larger will be the quantity demanded; and the higher the price, the smaller will be the quantity demanded, other things being equal. |
|
|
Term
| Change in Quantity Demanded |
|
Definition
| A movement along one demand curve, brought about by a change in the price of the product. |
|
|
Term
|
Definition
| A shift to an entirely new demand curve, brought about by a change in one or more of the factors assumed to be held constant. |
|
|
Term
|
Definition
| A good whose demand increases as incomes rise and decreases as incomes fall. |
|
|
Term
|
Definition
| A good whose demand decerases as incomes rise and increases as incomes fall. |
|
|
Term
|
Definition
| Two goods for which an increase in the price of one leads to an increase in the demand for the other. |
|
|
Term
|
Definition
| Two goods for which an increase in the price of one leads to a fall in the demand for the other. |
|
|
Term
|
Definition
| The quantity of a product that sellers are willing to sell at various prices, other things being equal. The other things that must remain equal are (1) the cost of production, (2) the prices of goods related in production, (3) sellers' expectations, and (4) the number of sellers. |
|
|
Term
|
Definition
| The higher the price of the product, the larger will be the quantity supplied; and the lower the price, the lower will be the quantity supplied, other things being equal. |
|
|
Term
| Change in the Quantity Supplied |
|
Definition
| A movement along one supply curve, brought about by a change in the price of the product. |
|
|
Term
|
Definition
| A shift to an entirely new supply curve, brought about by a change in one or more of the factors assumed to be held constant. |
|
|
Term
|
Definition
| The price at which the sellers of a product wish to sell exactly the same amount as the consumers wish to buy. As such, the equilibrium price indicates when consumers feel that precisely the correct share of the economy's scarce resources is devoted to producing the product. |
|
|
Term
| Equilibrium Quantity Purchased |
|
Definition
| The quantity of the product that is actually exchanged at the equilibrium price. |
|
|
