Term
|
Definition
| the condition in which our wants (for goods) are greater than the limited resources (land, labor, capital, and entrepreneurship) available to satisfy those wants. |
|
|
Term
|
Definition
| a measure of satisfaction, happiness, or benefit that results from consuming a good. |
|
|
Term
|
Definition
| anything from which individuals receive utility or satisfaction |
|
|
Term
|
Definition
| the goods or services available to individuals and businesses used to produce valuable consumer products |
|
|
Term
|
Definition
| all natural resources such as minerals, forests, water, and unimproved land. |
|
|
Term
|
Definition
| The physical and mental talents people contribute to the production process |
|
|
Term
|
Definition
| produced goods that can be used as inputs for further production such as factories, machinery, tools, computers and buildings. |
|
|
Term
|
Definition
| the talent that some people have for organizing the resource of land, labor, and capital to produce goods, seek new business opportunities and develop new ways of doing things. |
|
|
Term
|
Definition
| the most highly values opportunity or alternative forfeited when a choice is made. |
|
|
Term
|
Definition
| a Latin term meaning “all other things constant” or “nothing else changes” |
|
|
Term
| Law of Increasing Opportunity Costs |
|
Definition
| as more of a good is produced the opportunity costs of producing that good increase. |
|
|
Term
|
Definition
| the willingness and ability of buyers to purchase different quantities of a good at different prices during a specific time period |
|
|
Term
|
Definition
| as the price of a god rises the quantity demanded of the good falls and as the price of the good falls the quantity demanded of the good rises. |
|
|
Term
|
Definition
| the wiliness and ability of producers to produce and offer to sell different quantities of a good at different prices during a specific period of time. |
|
|
Term
|
Definition
| As the price of a good rises the quantity supplied of the good rises and as the price of the good falls the quantity supplied of the good falls |
|
|
Term
|
Definition
| a good for which demand falls (rises) and income rises(falls). |
|
|
Term
|
Definition
| a good for which demand rises(falls) as income rises(falls). |
|
|
Term
|
Definition
| the wiliness and ability of buyers to purchase a specific quantity of a good at a specific price. |
|
|
Term
|
Definition
| the willingness and ability of producers to produce and offer for sale a specific quantity of a good at a specific price. |
|
|
Term
|
Definition
| the one and only price at which the quantity demanded of a good is equivilant to the quantity supplied of the good. |
|
|
Term
|
Definition
| a condition in which the quantity demanded of a good is greater than the quantity supplied of the good. |
|
|
Term
|
Definition
| a condition in which the quantity supplied of a good is greater than the quantity demanded of the good |
|
|
Term
|
Definition
| two goods that are used jointly in consumption. As the price of one good rises the demand for the other good falls and as the price of one good falls the demand for the other good rises. |
|
|
Term
|
Definition
| two goods that satisfy similar needs or desires. If two goods are substitutes, the demand for one rises as the price of the other rises. Vice versa |
|
|
Term
|
Definition
| the difference between the maximum price a buyer is willing and able to pay for a good or service and the price actually payed. CS=maximum buying price – price payed. |
|
|
Term
|
Definition
| the difference between the price sellers receive for a good and the minimum of lowest price for which they would have sold the good. PS=price received – minimum selling price. |
|
|
Term
|
Definition
| a government mandated maximum price above which legal trades cannot be made. |
|
|
Term
|
Definition
| a government mandated minimum price bellow which legal trades cannot be made. |
|
|
Term
| Price elasticity of demand |
|
Definition
| a measure of the responsiveness of a quantity demanded to changes in price. |
|
|
Term
|
Definition
| the demand when the percentage change in quantity demanded is greater than the percentage change in price. The quantity demanded changes proportionally more that price changes. |
|
|
Term
|
Definition
| the demand when the percentage changed in quantity demanded is less than the percentage changed in price. The quantity demanded changes proportionally less than price changes. |
|
|
Term
|
Definition
| the demand when a small percentage change in price causes and extremely large percentage change in the quantity demanded. (from all to nothing) |
|
|
Term
| perfectly inelastic demand |
|
Definition
| the demand when the quantity demanded does not change as price changes. |
|
|
Term
|
Definition
| the demand when the percentage change in quantity demanded is equal to the percentage change in price. The quantity demanded changes proportionally to price changes. |
|
|
Term
|
Definition
| price times quantity sold. |
|
|
Term
| Cross elasticity of demand |
|
Definition
| a measure of the responsiveness in quantity demanded of one good to changes in the price of another good. |
|
|
Term
| income elasticity of demand |
|
Definition
| a measure of the responsiveness of quantity demanded to changes in income. |
|
|
Term
| Price elasticity of supply |
|
Definition
| a measure of responsiveness of quantity supplied to changes in price. |
|
|
Term
|
Definition
| the additional utility a person receives from consuming an additional unit of a good. |
|
|
Term
|
Definition
| the total satisfaction person receives from consuming a particular quantity of a good |
|
|
Term
| Law of diminishing marginal utility |
|
Definition
| the marginal utility gained by consuming equal successive units of a good will decline as the amount consumed increases. |
|
|
Term
|
Definition
| the equilibrium that occurs when the consumer has spent all income and the marginal utilities per dollar spent on each good purchased are equal. |
|
|
