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Definition
| the study of how people make decisions in a world where resources are limited |
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| things that are required for survival, such as food, clothing and shelter |
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| things that people would like to have that make life more enjoyable |
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| the condition in which wants are greater than the resources available to satisfy those wants |
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Term
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| simplified representations of the real world tha are used to explain how the economy works or to predict economic changes |
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| the alternative you face when you decide to do one tings rather then another |
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| the cost of the next best use of your time or money when you choose to do one things rather then another |
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| the extra cost of producing one additional unit of output |
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| the extra benefit associated with an action |
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| an economic model that compares the marginal costs and marginal benefits of a decision |
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Definition
| an economic system in which supply, demand and prices help people make decisison and allocate resources |
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| a system in which private citizens own most of the means of production |
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| a system in which businesses are allowed to compete for profit with a minimum of government interference |
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| a reward offered to try to persuade people to take certain economic actions |
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| a choice that is based on choosing the alternative that has the greatest value from among comparable products |
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| the various quantities of a good or service that producers are willing to sell at all possible market prices |
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Definition
| the principal that suppliers will normally offer more for sale at higher prices and less at lower prices |
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Definition
| a numerical chart that illustrates the law of supply |
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Term
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Definition
| a graph that shows the amount of a product that would be supplied at all possible prices in the market |
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| the money a business receives for its products or services over and above its costs |
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Definition
| the combination of supply schedules of all the businesses that provide the same good or service |
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Definition
| the desire, willingness and ability to buy a good or service |
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Definition
| a table that lists the various quantities of a product or service that someone is willing to buy over a range of possible prices |
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Term
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Definition
| a graph that shows the amount of a product that would be bought at all possible prices in the market |
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Term
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Definition
| an economic principle that states that quantity demanded and price move in opposite directions |
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Definition
| the total demand of all consumers for their product or service |
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Term
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Definition
| the pleasure, usefulness or satisfaction people get from using a product |
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Term
| diminishing marginal utility |
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Definition
| the principal that people's additional satisfaction or their marginal utility, tends to go down as more and more units are consumed |
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Term
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Definition
| the amount by which the quantity supplied is higher than the quantity demanded |
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Term
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Definition
| the amount by which the quantity demanded is higher than the quantity supplied |
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| the price at which a good is bought and sold in a market so that theire is no surplus or shortage |
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| tangible products that satisfy needs and wants |
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Definition
| work that is performed for someone else |
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Term
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Definition
| types of resources natural resources, labor, capital, and entreprenuers that are necessary to produce goods and services |
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Definition
| all the things in nature that make production possible |
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Definition
| the nation's labor force or human resources, the physical and mental talents that people contribute to the production of goods and services |
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Definition
| the tools, machinery and buildings used to make goods |
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Definition
| an individual who starts a new business, introduces a new product and improves management techniques |
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Term
| gross domestic product (GDP) |
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Definition
| the total values, in dollars, of all the final goods and services produced in a country during a single year |
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| the quality of life based on the pssession of neccessities and luxuries that make life easier |
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Definition
| the market where productive resources are bougth and sold |
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| the market where producers offer good and services for sale |
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| a measure of the amount of output produced by a given amount of inputs in a specific period of time |
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| the concentration on good and services that an individual, business, or nation can produce better than anyone else |
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| the breaking down of a job into separate, smaller tasks, which are performed by different workers |
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| the reliance on others to provide the good and services that are consumed |
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| goods that, when consumed by one individual, cannot be consumed by another |
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| goods that can be comsumed by one person without preventing the consumption of the good by another |
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| the unintended side effect of an action that affects someone not involved in the action |
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| a law to control monopoly power and to preserve and promote competition |
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Definition
| a combination of two or more companies to form a single business |
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Definition
| a market situation in which the costs of production are minimized by having a single firm produce the product |
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| a situation in which a company pulls a product off the market or agrees to change it to make it safe |
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Definition
| a measure of the economy that shows an economy's production after the distortions of price increases have been removed |
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Definition
| alternating periods of growth and decline in an economy |
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Term
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Definition
| a growth in the economy shown by an increase in the real GDP |
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Term
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Definition
| the highest point in an economic expansion |
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Term
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| a downward trend inthe economy shown when the real GDP goes down for the six straight months |
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Term
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Definition
| all civilians 16 years and older who are either working or looking for work |
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| the percentage of people in the civilian labor force who are not working but are looking for jobs |
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| changes in the government spending or tax policies |
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| a sustained increase in the general level of prices |
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Term
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Definition
| a measure of the price level of 400 consumer items used to keep track of inflation |
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