Term
|
Definition
| Markets in which no buyer or seller has significant influence over the price at which the product sells. |
|
|
Term
|
Definition
| The relationship between the quantity of an item demanded per period and the price of that item. Or the relationship between an item and the willingness to pay for that item. |
|
|
Term
|
Definition
| The other things being equal assumption (holding factors constant to experiment with only one variable). |
|
|
Term
|
Definition
| A table showing the quantity of a good consumers are willing to buy over a period at different prices. |
|
|
Term
|
Definition
| There is an inverse relationship between the quantity demanded and its price. |
|
|
Term
|
Definition
| If the price of one good goes up, the other good's demand goes up. |
|
|
Term
|
Definition
| Two goods related so that the demand of one good goes down, if the other good's price goes up. |
|
|
Term
|
Definition
| Qdx= Q(PINTE) P=Price I=Income N=Number of buyers T=Tastes/preferences E=Expectations for future prices. |
|
|
Term
|
Definition
| A representation of a demand schedule. |
|
|
Term
| Marginal Willingness to Pay Curve |
|
Definition
| The maximum any person is willing to pay for each successive unit. |
|
|
Term
|
Definition
| A shift of a good's demand curve due to any factor. |
|
|
Term
|
Definition
| A good whose demand changes in the same direction as income. |
|
|
Term
|
Definition
| A good whose demanded changes in the opposite direction from the income. |
|
|
Term
|
Definition
| The relationship between the quantity of an item supplied per period the price of that item. |
|
|
Term
|
Definition
| A table showing the quantity of a good sellers are willing to sell over a period at each of several prices. |
|
|
Term
|
Definition
| Typically, but not always, sellers will offer to sell more only at a higher price. |
|
|
Term
| Marginal Willingness to Accept |
|
Definition
| The minimum compensation necessary to get a person to supply an extra unit. |
|
|
Term
|
Definition
| A representation of a supply schedule graphically. |
|
|
Term
|
Definition
| Shifts in a supply curve caused by changes in any factor affecting supply other than a change in the price of the item being supplied. |
|
|
Term
| Changes in Quantity Supplied |
|
Definition
| Movement along a supply curve caused only by changes in the price of the item being supplied. |
|
|
Term
|
Definition
Qsx=Q(PENT)
Equation that demonstrates the relationship between quantity supplied of a good and all hypothesized determinants of that good. |
|
|
Term
|
Definition
| The price at which quantity demanded equals quantity supplied. It is the market clearing price. |
|
|
Term
|
Definition
| More supplied than wanted |
|
|
Term
|
Definition
| Amount demanded is less than what is supplied. |
|
|
Term
|
Definition
| A legally binding maximum price. |
|
|
Term
|
Definition
| A legally binding minimum price. |
|
|
Term
|
Definition
| An economy that doesn't trade with others. |
|
|
Term
|
Definition
| Markets that the supply and demand for factors of production interact to determine wages and other factor prices. |
|
|
Term
|
Definition
| Markets that the flows of goods and services are established and in which the prices of goods and services are determined. |
|
|
Term
| Functional Distribution of Income |
|
Definition
| Shows how factors of production derives income according to its economic functions. |
|
|
Term
|
Definition
| The difference between the actual distribution of income and a perfectly proportional distribution. |
|
|
Term
|
Definition
| A business firm by one individual who has full responsibility of it. |
|
|
Term
|
Definition
| 2 or more come together to operate an enterprise. |
|
|
Term
|
Definition
| Business firms whose existence and function is apart from that of their owners. |
|
|
Term
|
Definition
| The fact that individual owners are responsible only for the value of their share purchased and not other debts. |
|
|
Term
|
Definition
| Debt instruments issued by corporations. |
|
|
Term
|
Definition
| Stock issued by a corporation that has no voting rights |
|
|
Term
|
Definition
| Stock issued by a corporation that has voting rights. |
|
|
Term
|
Definition
| Corporation pays taxes on its gross earnings, and shareholders pay taxes again when corporate earnings are distributed. |
|
|
Term
| Multinational Corporations |
|
Definition
| Corporations that work in many countries. |
|
|
Term
| Benefits-Received Principle |
|
Definition
| Argument that tax payments should be commensurate with the benefits received from gov services. |
|
|
Term
|
Definition
| The argument that as peoples' income increases, they can afford to pay a larger part of their incomes in taxes. |
|
|
Term
|
Definition
| Percentage of income paid in taxes. |
|
|
Term
|
Definition
| Tax in which the rate increases as income increases. |
|
|
Term
|
Definition
| Tax in which the rate decreases as income increases. |
|
|
Term
|
Definition
| A Tax in which the rate remains constant as income increases. |
|
|
Term
|
Definition
| Activities in both foreign and domestic areas. |
|
|
Term
|
Definition
| Idea that a market system benefits society when individuals act in their self-interest. |
|
|
