Term
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Definition
| Fluctuations in economic activity such as employment and production |
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Definition
| The study of how society manages its scarce resources |
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Definition
| society getting the most from its resources |
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Definition
| The impact of one persons actions on a bystander |
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Term
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Definition
| the reason that a person decides to act |
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Definition
| increase in overall prices in economy |
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Term
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Definition
| small incremental adjustments to a plan of action |
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Term
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Definition
| economy driven by the interactions between firms and households for goods and services in the market |
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Definition
| when a market left on its own, fails to allocate resources efficently |
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Term
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Definition
| ability of an economic factor (single) to have substancial influence on market prices |
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Term
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Definition
| what must be given up in order to aobtain a wanted item |
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Term
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Definition
| quanity of goods and services produced from each unit of labor input |
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Term
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Definition
| visual model of economy depicting flow of inputs/outputs and money trhough households and firms |
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Term
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Definition
| study of households/firms' decisions and how they interact in markets |
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Definition
| study of economy-wide phenomena (inflation, unemployment and economic growth) |
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Term
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Definition
| Statements about how the world should be |
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Term
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Definition
| Statements about how the world actually is |
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Term
| production possibilities frontier |
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Definition
| graph that shows combinations of outputs that the economy can possibly produce(given available technology) |
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Term
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Definition
| ability to produce a good using fewer inputs than another producer |
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Term
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Definition
| ability to produce a good at a lower opportunity cost than another producer |
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Term
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Definition
| goods produces domestically and sold abroad |
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Term
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Definition
| goods produced abroad and sold domestically |
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Term
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Definition
| market in which there are many buyers and sellers so that each has a negligible impact on the economy |
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Term
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Definition
| two goods in which a raise in price of one leads to a decrease in demand of the other (ex ice cream/chocolate syrup, pancakes/syrup, hot dogs/buns ect) |
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Term
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Definition
| a graph of the relationship of the price of a good and the quantity demanded |
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Term
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Definition
| a table that shows the relationship between the price of a good and the quantity demanded |
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Term
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Definition
| a situation in which the market price has reached the level at which quantity supplied equals quantity demanded |
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Term
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Definition
| the price that balances quantity supplied and quantity demanded |
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Term
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Definition
| the quantity supplied and the quantity demanded at the equilibrium price |
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Term
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Definition
| a good for which, other things equal, an increase in income leads to a decrease in demand |
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Term
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Definition
| the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises |
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Term
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Definition
| the claim that, other things equal, the quantity supplied of a good rises when the price of the good rises |
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Term
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Definition
| the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance |
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Term
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Definition
| a group of buyers and sellers of a particular good or service |
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Term
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Definition
| a good for which, other things equal, an increase in income leads to an increase in demand |
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Term
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Definition
| the amount of a good that buyers are willing and able to purchase |
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Term
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Definition
| the amount of a good that sellers are willing and able to sell |
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Term
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Definition
| a situation in which quantity demanded is greater than quantity supplied |
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Term
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Definition
| two goods for which an increase in the price of one leads to an increase in the demand for the other |
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Term
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Definition
| a graph of the relationship between the price of a good and the quantity supplied |
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Term
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Definition
| a table that shows the relationship between the price of a good and the quantity supplied |
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Term
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Definition
| a situation in which quantity supplied is greater than quantity demanded |
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Term
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Definition
| the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it |
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Term
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Definition
| the value of everything a seller must give up to produce a good |
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Definition
| the property of a resource allocation of maximizing the total surplus received by all members of society |
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Definition
| the property of distributing economic prosperity uniformly among the members of society |
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Definition
| the amount a seller is paid for a good minus the seller’s cost of providing it |
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Definition
| the study of how the allocation of resources affects economic well-being |
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Definition
| the maximum amount that a buyer will pay for a good |
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