Term
|
Definition
| The study of how best to allocate scarce resources among competing uses. |
|
|
Term
|
Definition
| The most desired goods and services that are forgone in order to obtain something else. |
|
|
Term
|
Definition
| Resource inputs used to produce goods and services; e.g., land, labor, capital, entreprenuership. |
|
|
Term
|
Definition
| Lack of enough resources to satisfy all desired uses of those resources. |
|
|
Term
|
Definition
| The alternative combinations of goods and services that could be produced in a given time period with all available resources and technology. |
|
|
Term
|
Definition
| Expenditures on (production of) new plant and equipment (capital) in a given time period, plus changes in business inventories. |
|
|
Term
|
Definition
| An increase in output (real GDP): an expansion of production possibilities. |
|
|
Term
|
Definition
| The use of market prices and sales to signal desired outputs (or resource allocations). |
|
|
Term
|
Definition
| The doctrine of "leave it alone," of nonintervention by government in the market mechanism. |
|
|
Term
|
Definition
| An economy that uses both market and nonmarket signals to allocate goods and resources. |
|
|
Term
|
Definition
| An imperfection in the market mechanism that precents optimal outcomes. |
|
|
Term
|
Definition
| Costs (or benefits) of a market activity borne by a third party; the difference between the social and private costs (or benefits) of a market activity. |
|
|
Term
|
Definition
| Government intervention that fails to improve economic outcomes. |
|
|
Term
|
Definition
| The study of aggregate economic behavior, of the economy as a whole. |
|
|
Term
|
Definition
| The study of individual behavior in the economy, of the components of the larger economy. |
|
|
Term
|
Definition
| The assumption that nothing else changes. |
|
|
Term
| Gross Domestic Product (GDP) |
|
Definition
| The total value of final goods and services produced within a nation's borders in a given time period. |
|
|
Term
|
Definition
| The value of output measured in current prices. |
|
|
Term
|
Definition
| The inflation-adjusted value of GDP: the value of output measured in constant prices. |
|
|
Term
|
Definition
| Total GDP divided by population; average GDP. |
|
|
Term
|
Definition
| An increase in output (real GDP); an expansion of production possibilities. |
|
|
Term
|
Definition
| Expenditures on (production of) new plant and equipment (capital) in a given time period, plus changes in business inventories. |
|
|
Term
|
Definition
| Payments in individuals for which no current goods or services are exchanged; e.g. Social Security, welfare, unemployment benefits. |
|
|
Term
|
Definition
| Goods and Services sold to foreign buyers. |
|
|
Term
|
Definition
| Goods and services purchased from foreign sources. |
|
|
Term
|
Definition
| Resource inputs used to produce goods and services, e.g., land, labor, capital, entreprenuership. |
|
|
Term
|
Definition
| Production processes that use a high ratio of capital to labor inputs. |
|
|
Term
|
Definition
| Output per unit of input, e.g., output per labor hour. |
|
|
Term
|
Definition
| The knowledge and skills possessed by the workforce. |
|
|
Term
|
Definition
| A firm that produces the entire market supply of a particular good or service. |
|
|
Term
| Personal Distribution of Income |
|
Definition
| The way total personal income is divided up among households on income classes. |
|
|
Term
|
Definition
| A tax system in which tax rates rise as incomes rise. |
|
|
Term
|
Definition
| A tax system in which tax rates fall as incomes rise. |
|
|
Term
|
Definition
| Any place where goods are bought and sold. |
|
|
Term
|
Definition
| Any place where factors of production (e.g., land, labor, capital, entrepreneurship) are bought and sold. |
|
|
Term
|
Definition
| Any place where finished goods and services (products) are bought and sold. |
|
|
Term
|
Definition
| The ability and willingness to sell (produce) specific quantities of a good at alternative prices in a given time period, ceteris paribus. |
|
|
Term
|
Definition
| The ability and willingness to buy specific quantities of a good at alternative prices in a given time period, ceteris paribus. |
|
|
Term
|
Definition
| The most desired goods or services that are forgone in order to obtain something else. |
|
|
Term
|
Definition
| A table showing the quantities of a good a consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus. |
|
|
Term
|
Definition
| A curve describing the quantities of a good a consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus. |
|
|
Term
|
Definition
| The quantity of a good demanded in a given time period increases as its price falls, ceteris paribus. |
|
|
Term
|
Definition
| A change in the quantity demanded at any (every) given price. |
|
|
Term
|
Definition
| The total quantities of a good or service people are willing and able to buy at alternative prices in a given time period; the sum of individual demands. |
|
|
Term
|
Definition
| The total quantities of a good that sellers are willing and able to sell at alternative prices in a given time period, ceteris paribus. |
|
|
Term
|
Definition
| The quantity of a good supplied in a given time period increases as its price increases, ceteris paribus. |
|
|
Term
|
Definition
| The price at which the quantity of a good demanded in a given time period equals the quantity supplied. |
|
|
Term
|
Definition
| The amount by which the quantity demanded exceeds the quantity supplied at a given price: excess demand. |
|
|
Term
|
Definition
| The amount by which the quantity supplied exceeds the quantity demanded at a given price: excess supply. |
|
|
Term
|
Definition
| Upper limit imposed on the price of a good or service. |
|
|
Term
|
Definition
| Lower limit imposed on the price of a good. |
|
|
Term
|
Definition
| Government intervention that fails to improve economic outcomes. |
|
|
Term
|
Definition
| The use of market prices and sales to signal desired outputs (or resource allocations). |
|
|
Term
|
Definition
| The pleasure of satisfaction obtained from a good or service. |
|
|
Term
|
Definition
| The amount of satisfaction obtained from entire consumption of a product. |
|
|
Term
|
Definition
| The satisfaction obtained by consuming one additional (marginal) unit of a good or service. |
|
|
Term
| Law of Diminishing Marginal Utility |
|
Definition
| The marginal utility of a good declines as more of it is consumed in a given time period. |
|
|
Term
|
Definition
| A curve describing the quantities a consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus. |
|
|
Term
| Price Elasticity of Demand |
|
Definition
| The percentage change in quantity demanded divided by the percentage change in price. |
|
|
Term
|
Definition
| The price of a product multiplied by the quantity sold in a given time period: p x g. |
|
|
