Shared Flashcard Set

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final
everything
24
Business
Undergraduate 1
12/09/2010

Additional Business Flashcards

 


 

Cards

Term
economics
Definition
social science concerned with use of scarce resources to achieve maximum satisfaction of economic wants
Term

economic perspective

 

 

"economic way of thinking"

 

Definition
comprised of scarcity and choice, rational behavior, utility, marginal costs, marginal benefits
Term
direct relationship
Definition
change in the same direction
Term
inverse relationship
Definition
change in opposite directions
Term
opportunity cost
Definition

is the cost of choosing one option over a list of other, there is always cost

 

Term
full production
Definition
means that all employed resources must be used at maximum efficiency to satisfy economic wants
Term
full employment
Definition
no worker looking for work is unable to find employment
Term
allocative efficiency
Definition
resources are sent to products that society wants most
Term
market
Definition
a institution that brings together buyers and sellers
Term
demand
Definition
the schedule or a curve that shows amounts of a product that consumers are willing to buy at specific prices
Term
diminishing marginal utility
Definition
successive units of a particular product produce less and less marginal utility
Term
income effect
Definition
indicates that lower prices increases the purchasing power of the buyers money income
Term
substitution effect
Definition
suggest that a lower price buyers have incentive to substitute what is now less expensive product for similar products that are now relatively low, for products that are now relatively more expensive
Term
inferior goods
Definition
goods whose demand vary inversely with money income
Term
normal goods
Definition
goods whose demand varies directly with money income
Term
supply
Definition
is a curve showing the amounts of a product that produceer are willin to sell and make avalible at each of a series of possible prices
Term
law of supply
Definition
as prices raises so does quantity suppled and inversely
Term
law of demand
Definition
as price falls quantity demanded raises and inversely
Term
price floor
Definition
a minimum price inserted buy the government to protect an industr
Term
price ceiling
Definition
maximum price set to protect consumers
Term
Mc Marginal cost
Definition
change in total cost / change in quantity
Term
Atc average total cost
Definition
afc+avc
Term
afc
Definition
tfc/q
Term
avc
Definition
tvc/q
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