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Definition
the study of how people try to satisfy what appears to be seemingly unlimited
and competing wants through the careful use of scarce resources. |
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| Fundamental economic problem facing society is... |
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Definition
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Term
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Definition
the condition that results from society not having enough resources to
produce all the things people would like to have. |
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Definition
| capacity to be useful and provide satisfaction. |
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Term
| “There Is No Such Thing as a Free Lunch” |
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Definition
| virtually everything has a cost, even if it seems we are getting it “free” |
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Term
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Definition
an item that is economically useful or satisfies an economic want
Ex: book, car, CD player... |
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Definition
worked that is performed for someone
Ex: haircuts, home repair, form of entertainment |
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Term
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Definition
| a service is intangible, something that can't be touched |
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Term
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Definition
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Term
| 4 Factors of Production Examples: |
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Definition
→Land- “gifts of nature”
→Capital- tools, equipment, machinery...
→Labor- efforts, abilities, and skills
→Entrepreneurs |
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Term
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Definition
the change in quantity demanded because of a change in price that alters the
consumers' real income. |
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Term
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Definition
the change of quantity demanded because of the change in the relative price
of the product. |
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Term
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Definition
related goods
the use of 1 increases the use of the other |
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Term
| Something that happens to cause the demand curve to shift is.... |
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Definition
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Term
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Definition
people are now willing to buy different amounts of the product at the same
price.
....Why?
→Consumer Income →Consumer Taste
→Price of related good → No. of consumers |
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Term
| Market Demand Curve vs. Individual Demand Curve |
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Definition
The individual demand curve shows quantity demanded at every price that
might prevail in the market. And the market demand curve shows quantity
demanded by everyone who is interested in purchasing the product. |
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Term
| Appears as a movement along the demand curve is... |
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Definition
| change in quantity demanded |
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Term
| The Demand Curve is shown graphically as a.... |
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Definition
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Term
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Definition
states that the quantity demanded of a good or service varies inversely
with its price. |
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Term
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Definition
the principle that suppliers will normally offer more for sale at a high price
and less at a lower price |
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Term
| The Supply Curve is shown graphically as a... |
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Definition
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Term
| Effect of subsidy in regards to Supply. |
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Definition
If the producers inventory is taxed the cost of production goes up.
This causes the supply curve to SHIFT LEFT. Or, if taxes go down supply then
increases and the supply curve SHIFTS RIGHT. |
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Term
| Is represented by a movement along the suppl curve... |
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Definition
| change in quantity supplied |
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