Term
|
Definition
| The willingness and ability of sellers to provide goods for sale in a market. |
|
|
Term
|
Definition
| the willingness and ability of buyers to purchase goods. |
|
|
Term
|
Definition
| The principal that an inverse relationship exists between the price of a good and the quantity of that good that buyers demand, other things being equal. |
|
|
Term
|
Definition
| A graphical representation of the relationship between the price of a good and the quantity of that good that buyers demand. |
|
|
Term
| Change in Quantity Deamanded |
|
Definition
| A change in the quantity of a good that buyers are willing and able to purchase that results from a change in the good's price, other things being equal, shown by a movement from one point to another along a demand curve. |
|
|
Term
|
Definition
| A chang in the quantity of a good that the buyers are willing and able to purchase that is caused by a change in some condition other than the price of that good; a shift in the demand curve. |
|
|
Term
|
Definition
| A pair of goods for which an increase in the price of one causes an increase in demand for the other. |
|
|
Term
|
Definition
| A pair of goods for which an increase in the price of one causes a decrease in demand for the other. |
|
|
Term
|
Definition
| A good for which an increase in consumer income results in an increase in demand. |
|
|
Term
|
Definition
| A good for which an increase in consumer income results in a decrease of demand. |
|
|
Term
|
Definition
| A graphical representation of the relationship between the price of a good and the quantity of that good that sellers are willing to supply. |
|
|
Term
| Change in Quantity Supplied |
|
Definition
| A change in the quantity of a good that suppliers are willing and able to sell that results in a change in the good's price, other things being equal, shown by movement on the supply curve. |
|
|
Term
|
Definition
| A change in the quantity of a good that suppliers are willing and able to sell that results from a change in some conditions other than the good's price, shown by a shift in the supply curve. |
|
|
Term
|
Definition
| A condition in which buyers' and sellers' plans exactly mesh in the marketplace, so that the quantity supplied exactly equals the quantity demanded at a given price. |
|
|
Term
|
Definition
| A condition in which the quantity demanded of a good demanded at a given price exceeds the quantity supplied. |
|
|
Term
|
Definition
| a stock of good awaiting sale or use. |
|
|
Term
|
Definition
| A condition in which the quantity of a good supplied at a given price exceeds the quantity demanded. |
|
|
Term
| Circular Flow of Income and Production |
|
Definition
| The flow of goods and services between households and firms, balanced by the flow of payments made in exchange for goods and services. |
|
|
Term
|
Definition
| The total income of all types-- including wages, rents,interests payments,and profits--that is paid in return for factoes of production used in producing domestic product. |
|
|
Term
|
Definition
| All purchases of goods and services by households for the purpose of immediate use. |
|
|
Term
|
Definition
| An economy that has no links to the rest of the world. |
|
|
Term
|
Definition
| The saving, net tax, and import components of the circular flow. |
|
|
Term
|
Definition
| Tax revenue minus transfer payments. |
|
|
Term
|
Definition
| Payments by Government to individuals for pensions, unemployment compensation, and other payments that do not represent income from servicesthat the recipients currently provide. |
|
|
Term
|
Definition
| The part of income that households do not use to buy goods and services or to pay taxes. |
|
|
Term
|
Definition
| The government purchase, investment, and net export components of the circular flow. |
|
|
Term
|
Definition
| Purchases of goods by all levels of government plus purchases of services from contractors and wages of government employments. |
|
|
Term
|
Definition
| Government purchases of goods and services plus transfer payments. |
|
|
Term
|
Definition
| The sum of fixed investment and inventory investment. |
|
|
Term
|
Definition
| Purchases of newly produced capital goods. |
|
|
Term
|
Definition
| Changes in stock of finished goods ready for sale, raw materials, and partially completed goods in process of production. |
|
|
Term
|
Definition
| An economy that has links to the outside world in the form of imports, exports, and financial transactions. |
|
|
Term
|
Definition
| A leakage from the circular flow consisting of payments for good and services purchased from the rest of the world. |
|
|
Term
|
Definition
| An injection into the circular flow consisting of payments received for goods and services sold to the rest of the world. |
|
|
Term
|
Definition
| Payments received for exports minus payments made for imports. |
|
|
Term
|
Definition
| Purchases of domestic assets by foreign buyers and borrowing from foreign lenders; also called capital inflows. |
|
|
Term
|
Definition
| Purchases of foreign assets by domestic residents or loans by domestic lenders to foreign borrowers; also known as capital outflows. |
|
|
Term
| Planned Inventory Investment |
|
Definition
| Changes in the level of inventory made on purpose, as part of a firm's business plan. |
|
|
Term
| Unplanned Inventory Investment |
|
Definition
| Changes in the level of inventory that arise from a difference between planned and actual sales. |
|
|
Term
|
Definition
| The sum of fixed investment and planned inventory investment. |
|
|
Term
|
Definition
| The sum of consumption, government purchases, net exports, and planned investments. |
|
|
Term
| Marginal Propensity to Consume |
|
Definition
| THe proportion of each added dollar of real disposable income that households devote to consumption. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Term applied to any variable that is determined by noneconomic considerations, or by economis considerations that lie outside the scope of a given model. |
|
|
Term
|
Definition
| Term applied to any variable that is determined by other variables included in an economic model. |
|
|
Term
|
Definition
| The tendency of a given exogenous change in planned expenditure to increase equilibrium GDP by greater amount. |
|
|
