Term
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Definition
| Central Government makes all decisions on the production and consumption of goods and services |
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Term
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Definition
| Economic system that relies on habit, custom, or ritual to decide question of production and consumption of goods and services |
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Term
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Definition
- Tastes and Fades
- # of Buyers in the market
- Price and availability of complements
- Price and availability of substitutes
- Future price expectations
- Consumer income
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Term
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Definition
- Changes in Price and availability of productive resources
- Technology
- # of Sellers in the market
- Price of other goods that could be produced
- Tax policies
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Term
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Definition
| Increase in price = increase in supply |
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Term
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Definition
| As price goes up, demand goes down |
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Term
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Definition
- Cannot go above
- Prevent you from going up
- Keeps price from going up
- Price ceiling is set below equilibrium
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Term
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Definition
- Set above equilibrium
- Cannot go below
- Prevents you from going down
- Keeps price from going down
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Term
| Equilibrium price and quantity |
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Definition
| When supply and demand meet |
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Term
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Definition
- Provide a legal system
- Provide public goods and services
- Correct Market Failures
- Maintain competition
- Redistribute income
- Stabilize the economy
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Term
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Definition
| Doing as much as you can with what you have. |
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Term
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Definition
- Equity
- Efficiency
- Growth
- Freedom
- Security
- Stability
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Term
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Definition
- Availability
- Anything with an opportunity cost
- Anything with a price
- If it is made out of a scarce resource
- Limited quantity
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Term
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Definition
- Import Quotas
- Limit on amount of imports
- Subsidies
- Government pays domestic company
- tariffs
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Term
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Definition
| The market value of final goods and services produced in a country within a given year |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| Anything produced in a foreign country does not count in GNP |
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Term
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Definition
| 1 less than desired amount |
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