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Definition
| the best alternative that one must give up when making a choice or decision |
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Definition
| is achieved in the production of a good or service if it can be produced using fewer resources |
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Definition
| is achieved when it can be produced at a lower opprotunity cost |
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| an economy in which individual people and firms pursue their own self- interests without any central direction or regulation |
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Definition
| the freedom of individuals to start and operate private businesses in search of profits |
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Definition
| the negative relationship between price and quantity demanded: As price rises, quantity demanded decreases. As price falls, quantity demanded increases |
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Definition
| the difference between revenue and cost |
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Definition
| exists when quantity supplied exceeds quantity demanded at the current price |
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Definition
| when the price levels of supply and demand are equal or intersect |
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Term
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Definition
| a period in which aggregate output declines |
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Term
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Definition
| a prolonged and deep recession |
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Term
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Definition
| an increase in overall price level |
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Term
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Definition
| government policy concerning taxes and expenditures |
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Term
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Definition
| the total quantity of goods and services |
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Definition
| the record of a countries transactions in goods, servies, and assets with the rest of the world, also of countries resources and uses of forgein exchange |
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| Balance on current account |
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Definition
| net exports of goods and services, plus net investment income and net transfer payments |
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Term
| Balance on Capital Account |
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Definition
| the change in private assets abroad. |
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Definition
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Term
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Definition
| Internationl Monetary Fund |
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Term
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Definition
| intrerstate commerce committee |
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Term
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Definition
| marginal propensity to consume |
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Term
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Definition
| Marginal propensity to import |
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Term
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Definition
| marginal propensity to save |
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Term
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Definition
| consumer price index- represents the "market basket" purchased monthly by the typical consumer |
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Term
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Definition
| average fixed cost- total fixed cost divided by the number of units of output |
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Definition
| Average total cost- total cost divided by the number of units of output |
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Definition
| Average propensity to consume |
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Definition
| Average variable cost- total variable cost divided by the number of units of output |
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Definition
| the differnece between what a governmnet spends and what it collects in taxes |
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Term
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Definition
| net national product- gross national produt minus depreciation |
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Term
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Definition
| producer price indexes- measures of prices that producers recieve for products at all stages in the production process |
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Definition
| total fixed cost- the total of all costs that do not change with output, even if output is zero |
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Term
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Definition
| toatl variable cost- the total of all costs that vary with output in the short run |
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Term
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Definition
| a legal maximum on the price at which a good can be sold; price is not allowed to rise above this level |
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Definition
| a legal minimum on the price at which a good can be sold; prices can not fall below this level |
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Definition
| exists because human wants for goods and services exceed the quantity that can be produced using all available resources |
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Term
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Definition
| a measure of how much buyers and sellers respond to changes in market conditions |
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Term
| price elasticity of demand |
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Definition
| percentage change in quantity demaded given percent change in price; quantity demanded divide dby the change in price |
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