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Definition
A condition caused by the combination of seemingly unlimited wants and limited resources. |
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Definition
Productive resources that make up the 4 categories of land, capital, labor, and entrepreneurship. |
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Definition
Natural resources or "gifts of nature" not created by human effort; one of the four factors of production. |
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Definition
Tools, equipment, and factories used in the production of goods and services; one of the four factors of production. |
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Definition
People with all their abilities and efforts;one of the four factors of production. |
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Definition
Risk-taking individual in search of profits; one of the four factors of production. |
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Definition
A social science dealing with the study of how people people satisfy seemingly unlimited and competing wants with the careful use of scarce resources. |
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Definition
Term used in economics to describe the concept of "most things in life are not free" because someone always has to pay for the production(There Is No Such Thing As A Free Lunch) |
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Definition
Money used to buy tools and equipment used in production.
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Definition
Alternatives that must be given up when one is chosen rather than another.
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Definition
The cost of the next best alternative use of money, time, or resources when one choice is made rather than another. |
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Term
Production possibilities frontier |
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Definition
Diagram representing maximum combinations of goods and/or services an economy can produce when all productive resources are fully employed.
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Definition
Philosophy that government should not interfere with commerce or trade.(means "Let it be" in French) |
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Definition
Term meaning competition.
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The Father of Classical Economics because he contributed so much to economics. |
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Definition
A book written by Adam Smith; he wrote his ideas about growing wealth,power,labor, and production in this book. |
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Term
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Definition
An organized way of providing for the wants and needs of people.(same as an economic system)
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Definition
Organized way a society provides for the wants and needs of its people.(same as an economy) |
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Definition
Economic system in which the allocation of scarce resources and other economic activity is the result of ritual, habit, or custom. |
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Definition
Economic system characterized by a central authority that makes most of the major economic decisions. |
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Definition
Economic system in which supply, demand, and the price system help people make decisions and allocate resources; same as a free enterprise economy. |
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Definition
Role of consumer as ruler of the market when determining the types of goods and services produced. |
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Definition
Federal program of disability and retirement benefits that covers most working people. |
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Definition
Rise in the general level of prices. |
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Definition
Income that does not increase even though prices go up. |
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Definition
The right to make your own economical decisions. |
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Term
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Definition
The ability to use resources wisely, in an effort to cut down on the wasted resources. |
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Definition
Economy in which the apportionment of resources or goods among the people is considered fair. |
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Definition
Securing a steady income and building assets to better meet their needs. |
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Definition
State of economy in which all eligible people who want to work can find employment at prevailing wage rates. |
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Definition
A situation in which prices in an economy don't change much over time. |
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Definition
Sustained period during which a nation's total output of goods and services increases. |
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Definition
Economic system in which private citizens own and use the factors of production in order to generate profits. |
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Definition
The struggle among sellers to attract consumers while lowering costs. |
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Definition
Act of buyers and sellers freely and willingly engaging in market transactions; characteristic of capitalism and free enterprise. |
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Definition
Personal property or possessions; includes both tangible and intangible property. |
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Definition
Extent to which persons or organizations are better off at the end of a period than they were at the beginning; usually measured in dollars. |
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Definition
The assumption that people act to maximize their own welfare. |
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Definition
Free entrprise market economy where people carry on their economic affairs freely, but are subject to some govrnment intervention and regulation.(same as modified private enterprise economy) |
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Term
Modified private enterprise economy |
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Definition
Free entrprise market economy where people carry on their economic affairs freely, but are subject to some govrnment intervention and regulation.(same as mixed economy) |
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Term
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Definition
Deals with the allocation and distribution of goods and services. |
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Definition
An entity formed for the purpose of carrying on a commercial enterprise. |
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Definition
Stock of goods held in reserve; includes finished goods waiting to be sold and raw materials to be used in production. |
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Term
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Definition
Benefits received by the employees in addition to wages and salaries; including paid vacations,sick leave, retirement, and insurance. |
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Definition
Situation in which a firm legally ceases to exist when an owner dies, quits, or an new owner is added. |
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Definition
Requirement that an owner is personally and fully responsible for all losses and debts of a business. |
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Definition
Form of partnership where one or more partners aren't active in the daily running of the business. |
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Term
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Definition
Articles by which the parties enter into a partnrship, upon the conditions therein mentioned. |
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Term
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Definition
Form of business organization recognized by law as a separate entity having all the rights of an individual. |
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Definition
A business owned and operated by one person. |
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Definition
A business jointly owned by two or more persons who share the profits. |
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Term
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Definition
To unite with a corporation or similar organization. |
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Definition
Person who owns a share or shares of stock in a corporation; same as shareholders. |
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Term
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Definition
Check paid to stockholdrs, usually quarterly, representing portion of corporate profits. |
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Definition
Group of people who run the business in a corporation; also discuss policy and goals. |
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Stock that represnt nonvoting ownership shares of a corporation. |
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Definition
Represents basic ownership of a corporation. |
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Definition
A person who acts on behalf of someone or something else. |
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Term
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Definition
Formal contract to repay borrod money and interest on the borrowed money at regular future intervals. |
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Term
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Definition
Amount borrowed when getting a loan or issuing a bond. |
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Term
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Definition
Payment made for the use of borrowed money; usually paid at periodic intervals for long-trm bonds or loans. |
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Term
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Definition
Court-granted permission to an individual or business to cease or delay payment on some or all debts for a limited amount of time. |
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Definition
Situation in which a firm legally exists when an owner dies, quits, or a new owner is added. |
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Term
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Definition
Income that a company receives from its normal business activities. |
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Term
S.E.C(Securities and Exchange Commision) |
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Definition
An independent U.S. government agency established by Congress. |
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Term
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Definition
Combination of 2 or more business enterprises to form a single firm. |
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Term
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Definition
Combination of 2 or more firms producing the same kind of product. |
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Term
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Definition
Combination of firms involved in different steps of manufacturing or marketing. |
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Term
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Definition
Firm with 4 or more businesses making unrelated products, with no single business responsible for a majority of its sales. |
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Term
Multinational corporation |
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Definition
Corporation producing and selling without regard to national boundaries and whose business activites are located in several different countries. |
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Term
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Definition
Economic institution that operates like a business but does not seek financial gain.(Examples:Schools,churches,community service organization) |
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Term
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Definition
A non-profit association performing some kind of economic activity for the benefit of its members. |
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Term
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Definition
Voluntary association that buys bulk amounts of goods such as food and clothing on behalf of its members. |
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Term
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Definition
Provides services such as insurance, credit, and baby-sitting to its members, rather than goods. |
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Term
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Definition
Nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services. |
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Term
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Definition
Helps members promote or sell their products. |
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Term
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Definition
An organization of workers formed to represent its members' interest in various employment matters. |
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Term
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Definition
Process of negotiation between union and management representatives over pay, benefits, and job-related matters. |
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Term
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Definition
Nonprofit organization of professional or specialized workers seeking to improve working conditions, skill levels, and public perception of its profession. |
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Term
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Definition
Nonprofit organization of local businesses whose purposes is to promote their interests. |
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Term
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Definition
Business-sponored nonprofit organization providing information on local companies to conumers. |
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Term
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Definition
Company providing essential services such as water and electricity to consumers, usually subject to some government regulations. |
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Term
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Definition
Combination of desire, ability, and willingness to buy a product. |
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Term
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Definition
Branch of economic theory that deals with behavior and decision making by small units such as individuals and firms. |
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Term
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Definition
Listing showing the quantity demanded at all possible prices that might prevail in the market at a given time. |
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Term
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Definition
Graph showing the quantity demanded at each and every possible price that might prevail in the market a given time. |
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Term
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Definition
Rule stating that more will be demanded at lower prices and less at higher prices; inverse relationship between price and quantity demanded. |
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Term
Change in Quantity Demanded |
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Definition
Movement along the demand curve showing that a different quantity is purchased in response to a change in price. |
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Term
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Definition
That portion of a change in quantity demanded caused by a change in a consumer's real income when the price of a product changes. |
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Term
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Definition
That portion of a change in a quantity demanded due to a change in the relative price of the product. |
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Term
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Definition
Consumers demand different amounts at every price, causing the demand curve to shift to the left or the right. |
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Term
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Definition
Competing products that can be used in place of one another; products related in such a way that an increase in the price of one increases the demand for the other. |
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Term
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Definition
Products that incease the value of other products; poducts related in such a way that an increase in the price of one reduces the demand for both. |
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Term
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Definition
Satisfaction or usefulness obtained from acquiring one more unit of a product. |
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Term
Diminishing marginal utility |
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Definition
Decreasing satisfaction or usefulness as additional units of a product are acquired. |
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Term
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Definition
Measure of responsiveness relating change in quantity demanded(dependent variable) to a change in price(independent variable). |
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Term
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Definition
Type of elasticity where the percentage change in the independent variable(usually price) causes a more than proportionate change in the dependent variable(usually quantity demanded or supplied). |
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Term
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Definition
Type of elasticity where the percentage change in the independent variable (usually price) causes a less than proportionate change in the indepndent variable(usually quantity demanded or supplied). |
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Term
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Definition
Elasticity where a change in the indepndent variable (usually price) generates a proportional change of the dependent variable(quantity demanded or supplied). |
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Term
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Definition
Schedule of quantities offered for sale at all possible prices in the market. |
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Term
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Definition
Tabular listing showing the quantities produced or offered for sale at each and every possible price in the market. |
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Term
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Definition
Graphical representation of the quantities produced at each and every possible price in the market. |
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Term
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Definition
Rule stating that more will be offered for sale at high prices than at lower prices. |
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Term
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Definition
Amount offered for sale at a given price; point on the supply curve. |
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Term
Change in quantity supplied |
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Definition
Change in amount offered for sale in response to a price change; movemnet along the supply curve. |
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Term
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Definition
Different amounts offered for sale at each and every possible price in the market; shift of the supply curve. |
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Term
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Definition
Government payment to encourage or protect a certain economic activity. |
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Term
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Definition
Responsiveness of quantity supplied to a change in price. |
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Term
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Definition
Theory dealing with the relationship between the factors of production and the output of goods and services. |
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Term
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Definition
Production period so short that that only variable inputs can be changed. |
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Term
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Definition
Production period long enough to change amount of variable and fixed inputs used in production. |
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Term
Law of Variable Proportions |
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Definition
Rule stating that short run output will change as one input is varied while others are held constant. |
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Term
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Definition
Graphic portrayal showing how a change in the amount of a single variable input affects total output. |
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Term
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Definition
Unprocessed natural resources used in production. |
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Term
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Definition
Total output or production by a firm. |
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Term
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Definition
Extra output due to the addition of one more unit of input. |
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Term
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Definition
Phases of production-increasing,decreasing, and negative returns. |
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Term
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Definition
Stage of production where output increases at a decreasing rate as more units of a variable are added. |
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Term
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Definition
Cost of production that does not change when output changes. |
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Term
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Definition
Production cost that varies as output changes.(examples:Labor,energy,raw materials) |
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Term
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Definition
Broad category of fixed costs that includes interest,rent,taxes,and executive salaries. |
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Term
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Definition
Gradual wear on captial goods during production. |
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Term
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Definition
Variable plus fixed cost; all costs associated with production. |
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Term
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Definition
Extra cost of producing one additonal unit of production. |
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Term
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Definition
Total receipts; price of goods sold times quantity sold. |
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Term
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Definition
Extra revenue from the sale of one additional unit of output. |
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Term
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Definition
Desicion making that compares the extra cost of doing something to the extra benefits gained. |
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Term
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Definition
Production needed if the firm is to recover its costs; production level where total cost equals total revenue. |
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Term
Profit maximizing quantity of output |
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Definition
Level of production where marginal cost is equal to marginal revenue. |
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Term
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Definition
System of allocation goods and services without prices. |
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Term
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Definition
Cetificate allowing holder to receive a given amount of rationed products. |
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Term
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Definition
Set of assumptions in a table, graph, or equations used to describe or explain economic behavior. |
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Term
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Definition
Condition of price stability where the quantitiy demanded equals the quantity supplied. |
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Term
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Definition
Situation where quantity supplied is greater than quantity demanded at a given price. |
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Term
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Definition
Situation where quantity supplied is less than quantity demanded at a given price. |
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Term
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Definition
Price where quantity supplied equals quantity demanded; price that clears the market. |
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Term
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Definition
Lowest price of a good or product. |
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Term
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Definition
Partial refund of the orginal price of a product. |
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Term
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Definition
Maximum legal price that can be changed for a product. |
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Term
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Definition
Lowest legal wage that can be paid to most workers. |
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Term
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Definition
Lowest legal price that can be charged for a product. |
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Term
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Definition
Agricultural floor price set by the government to stabilize farm incomes. |
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Term
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Definition
Agriculutural loan that carries neither a penalty nor further obligation to repay if not paid back. |
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Term
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Definition
Cash payment making up the difference between the market price and the market price and the target price of an agricultural crop. |
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Term
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Definition
The nature and degree of competition among firms operating in the same industry. |
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Term
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Definition
Commercial production and sale of goods. |
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Term
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Definition
Market structure characterized by a large number of well-informed independent buyers and sellers who exchange identical products. |
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Term
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Definition
Market structure where all conditions of pure competition are not met; (Examples: Monopolistic competition, oligopoly,monopoly) |
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Term
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Definition
Market structure having all conditions of pure competition except for identical products; form of imperfect competition. |
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Term
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Definition
Real or imagined differences between competing products in the same industry. |
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Term
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Definition
Competition involving the advertising of a product's apearance,quality,or design, rather than its price. |
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Term
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Definition
Market structure in which a few large sellers dominate and have the ability to affect prices in the industry; form of imperfect competition. |
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Term
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Definition
Agreements, usually illegal, among producers to fix prices, limit output, or divide markets. |
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Term
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Definition
Agreement,usually illegal, by firms to charge a uniform price for a product. |
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Term
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Definition
Series of price cuts that result in really low costs. |
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Term
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Definition
When an oligiopolist changes the price of the products without any other oligiopolist following. |
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Term
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Definition
Situation in which a market leader sets the price of a product or service and competitors feel compelled to match that price. |
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Term
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Definition
Market structure characterized by a single producer; form of imperfect competition. |
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Term
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Definition
Market where average costs are lowest when all output is produced by a single firm. |
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Term
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Definition
A right or license to an individual or group to market a company's goods or services. |
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Term
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Definition
Increasingly efficient use of personnel, plant, and equipment as a firm becomes larger. |
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Term
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Definition
Market situation where a firm has a monopoly because of its location or the small size of the market. |
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Term
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Definition
Market situation where a firm has a monopoly because it owns or controls a manufacturing method, process, or other scientific advance. |
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Term
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Definition
Protected by trademark or a brandname so as to establish proprietary rights. |
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Term
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Definition
The exclusive legal right to reproduce, publish, sell, or distribute the matter and form of something. |
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Term
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Definition
Legal right to reproduce, publish,sell,or distribute government matters and forms of things. |
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Term
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Definition
Market where any of the requirements for a competitive market - adequate competition, knowledge of prices and opportunities, mobility of resources ,and competitive profits - are lacking. |
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Term
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Definition
Economic side effect that affects an uninvolved third party. |
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Term
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Definition
Harmful side effect that affects an uninvolved third party; external cost. |
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Term
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Definition
Benefical side effect that affects an uninvolved third party. |
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Term
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Definition
Economic product that is consumed collectively; highways, national defense, police, and fire protection. |
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Term
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Definition
Illegal combination of corporations or companies organized to hinder competition. |
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Term
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Definition
Illegal practice of charging customers different prices for the same product. |
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Term
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Definition
Ruling requiring a company to stop an unfair business practice that reduces or limits competition. |
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Term
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Definition
Requirement forcing a business to reveal information about its products or its operations to the public. |
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Term
Federal Trade Commission(FTC) |
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Definition
Administers antitrust laws forbidding unfair competition, price fixing, and other deceptive practices. |
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Term
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Definition
The country's first significant law against monopolies; sought to do away with monopolies and restraints that hindered competition. |
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Term
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Definition
Passed in 1914 to give the government greater power against monopolies ;outlawed price discrimination. |
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Term
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Definition
Passed in 1936, forbade rebates and discounts on the sale of goods to large buyers unless the rebate and discount were available to all. |
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Term
Federal Trade Commission Act |
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Definition
Established to regulate unfair methods of competition in interstate commerce. |
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