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An incentive is something that motivates an individual to perform an action. The study of incentive structures is central to the study of all economic activities (both in terms of individual decision-making and in terms of co-operation and competition within a larger institutional structure).
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Elasticity refers to the degree of responsiveness in supply or demand in relation to changes in price. If a curve is more elastic, then small changes in price will cause large changes in quantity consumed. If a curve is less elastic, then it will take large changes in price to effect a change in quantity consumed.
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Marginal utility is an important economic concept because economists use it to determine how much of an item a consumer will buy. Positive marginal utility is when the consumption of an additional item increases the total utility.
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An assignment of worth
This is based upon the utility or scarcity of the item |
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| Goods that are intended for final use by the consumer |
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| Items used in the creation of other goods |
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Natural - Oil, coal,water...etc
Capital - Machines,tools and bulidingsthings needed to do a job
Labor - The work force |
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| People who use the goods and services |
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| Rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion. |
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Simply the desires of citizens.
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Tangible commodity
These are bought,sold,traded and produced |
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| The act of specializing, or pursuing a particular line of study or work |
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| The amount of a good or service available |
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| The basic requirements for surval like food, water, and shelter |
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| The cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output. |
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| The exchange of goods or services without money |
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| The fundamental economic problem facing all societies. Essentially it is how to satisfy unlimited wants with limited resources |
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| The loss of potential gain from other alternatives when one alternative is chosen |
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| The social science that seeks to describe the factors which determine the production, distribution and consumption of goods and services |
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| The state of being scarce or in short supply; shortage |
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| This is what you must give up when you make a economic choice |
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| To trade one thing for another |
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| Law of Diminishing Returns |
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| Used to refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested. |
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| What the people are willing and able to pay |
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| Work that is performed for someone |
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| You make an economice choice when you only have money for certain items not all |
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