Term
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Definition
| A government payment to buyers or sellers. |
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Term
| Side Effects: Price Floor |
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Definition
Surplus
Fewer Trading
Illegal Markets |
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Term
| Perfectly Competitive Market |
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Definition
| When nor buyers or sellers have the power to influence the price in a market. |
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Term
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Definition
| The study of the behavior of the overall economy. |
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Term
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Definition
| Coming up with an idea and making it an enterprise. |
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Term
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Definition
| Government imposed MAXIMUM price in a market. |
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Term
| Side Effects: Price Ceiling |
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Definition
Shortage
Fewer Trades
Illegal Markets |
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Term
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Definition
| a good that people demand more of as their income goes up. |
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Term
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Definition
| A claim based off of facts. |
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Term
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Definition
| Reasonable choices are made--thinking things through and doing your research before making a decision. |
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Term
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Definition
| When evaluating everything held constant--CETERIS PARIBUS |
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Term
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Definition
| Studying choices one unit at a time. Choice by choice. |
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Term
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Definition
| Claim based off of opinion. |
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Term
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Definition
| Resources are being fully used to the best of their abilities. |
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Term
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Definition
| The labor, capital, land, and entrepreneurship that are used to produce goods and services. |
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Term
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Definition
| The time human being spend producing goods and services. |
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Term
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Definition
| The physical place production takes place. |
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Term
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Definition
| When goods are sold illegally at a price above the legal ceiling. |
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Term
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Definition
| Government imposed maximum rents on apartments and homes. |
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Term
| A rightward shift in demand |
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Definition
| Equilibrium price and equilibrium quantity both rise. |
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Term
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Definition
| Government imposed MINIMUM price in a market. |
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Term
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Definition
| Quantity supplied exceeds quantity demanded (price floor). |
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Term
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Definition
| Quantity demanded exceeds quantity supplied (price ceiling). |
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Term
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Definition
| Buyers want to buy more than sellers want. |
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Term
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Definition
| Sellers want to sell more than buyers want to buy. |
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Term
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Definition
| The "steady state" where the market tends towards. Quantity supplied= Quantity demanded. |
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Term
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Definition
| Positive relationship between Price(P) and Quantity supplied(Qs). |
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Term
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Definition
| Physical plant equipment needed used to produce other goods. |
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Term
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Definition
| A good that people demand less of as their income rises. |
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Term
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Definition
| Goods you buy together (Peanut-butter and Jelly). |
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Term
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Definition
| Something in place of another goo (Pepsi or Coke). |
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Term
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Definition
| The quantity of a good that all buyers in a market would choose to buy during a period of time, given their constraints. |
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Term
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Definition
| A curve showing the quantity of a good or service demanded at various prices, with all other variables held constant (ceteris parabis). |
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Term
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Definition
| The specific amount of a good that all sellers in a market would choose to sell over some time period, given their restraints. |
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Term
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Definition
| Consisting of physical goods used to produce goods and services such as machinery, equipment, and factories. |
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Term
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Definition
| Does not always involve money, choices always involves this. For example, instead of spending money you may spend your time. |
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Term
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Definition
| Money sacrificed for a choice. |
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Term
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Definition
| What is given up when making a choice. This involves both explicit (money)and implicit(time) costs. |
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Term
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Definition
| A situation where the amount of something available is insufficient to meet the desire for it. |
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Term
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Definition
| The social science that studies the behavior of how individuals, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants. |
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Term
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Definition
| Negative relationship between Price (P) and Quantity demanded (Qd). |
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Term
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Definition
| The lowest price a seller is willing to take for a good. |
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Term
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Definition
| The study of behavior of individual households, firms and governements; the choices they make; and their interaction in specific markets. |
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Term
| Production Possibilities Frontier (PPF) |
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Definition
| A curve showing all the combinations of two goods that can be produced w/ the resources and technology currently available. |
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Term
| The Law of Increasing Opportunity Cost |
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Definition
| PPF has a concave shape, becoming steeper as we move rightward and downward. |
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Term
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Definition
| A situation where more of at least one good can be produced w/o sacrificing the production of a any other good. |
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Term
| A leftward shift in Demand |
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Definition
| Equilibrium price rises, but equilibrium quantity falls. |
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Term
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Definition
| other goods that firms in a market could produce instead of the good in question. |
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Term
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Definition
| An economic system in which resources are allocated through individual decision making. |
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Term
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Definition
| An economic system in which resources are allocated according to explicit instructions from a central authority (dictatorships). |
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