Term
| Production Possibilities Frontier(PPF) |
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Definition
| a curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology |
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Term
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Definition
1.People are rational
2.People respond to economic incentives
3.Optimal decisions are made at the margin |
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Term
| Three fundamental economy questions |
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Definition
1.What good & services will be produced
2.How will the goods & services be produced
3.Who will receive the goods and services produced |
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Term
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Definition
| the highest valued alternative that must be given up to engage in an activity |
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Term
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Definition
| a situation in which unlimited wants exceed the limited resources available to fulfill those wants |
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Term
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Definition
| the study of the choices people make to attain their goals, given their scarce resources |
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Term
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Definition
| the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth |
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Term
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Definition
| the ability of an individual, a firm, or a country to produce more of a good or service than competitors, using the same amount of resources |
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Term
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Definition
| the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors |
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Term
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Definition
| the amount of a good or service that a firm is willing and able to supply at a given price |
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Term
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Definition
| a table that shows the relationship between the price of a product and the quantity of the product supplied |
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Term
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Definition
| a curve that shows the relationship between the price of a product and the quantity of the product supplied |
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Term
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Definition
| the rule that, holding everything else constant, increases in price cause increases in the quantity supplied, and decreases in price cause decreases in the quantity supplied |
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Term
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Definition
| a group of buyers and sellers of a good or service and the institutions or arrangement by which they come together to trade |
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Term
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Definition
| a market for goods-such as computers-or services-such as medical treatment |
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Term
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Definition
| a market for the factors of production, such a labor, capital, natural resources, and entrepreneurial ability |
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Term
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Definition
| the act of buying & selling |
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Term
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Definition
| the demand by all the consumers of a given good or service |
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Term
| Gross Domestic Product(GPD) |
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Definition
| the market value of all final goods & services produced in a country during a period of time, typically one year |
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Term
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Definition
| Consumption, Investment, Government, Net Exports |
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Term
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Definition
| the value of final goods & services evaluated at current year prices |
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Term
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Definition
| the value of final goods & services evaluated at base-year prices |
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Term
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Definition
| is short-term unemployment that arise from the process of matching workers with jobs |
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Term
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Definition
| a rise from a persistent mismatch between the job skills or attributes of workers & the requirements of jobs |
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Term
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Definition
| is caused by a business cycle recession |
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Term
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Definition
| a higher than market wage that a firm pays to increase worker productivity |
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Term
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Definition
| is equal to the percentage change in the price level from one year to the next |
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Term
| Consumer Price Index(CPI) |
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Definition
| is an average of the prices of goods & services purchased by the typical urban family of four |
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Term
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Definition
| is an average of prices received by producers of goods & services at all stages of production |
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Term
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Definition
| the stated interest rate on a loan |
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Term
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Definition
| is the nominal interest rate minus the inflation rate |
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Term
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Definition
| include the costs of changing prices on products & printing new catalogs |
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Term
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Definition
| process by which rising productivity increases the average standard of living |
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Term
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Definition
| which is the level of GDP attained when all firms are producing at capacity |
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Term
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Definition
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Term
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Definition
| one that trades with exports and imports |
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Term
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Definition
| the interaction of borrowers & lenders that determines the market interest rate & the quantity of loanable funds exchanged |
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Term
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Definition
| a decline in private expenditures as a result of an increase in government purchases |
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Term
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Definition
| is the quantity of goods & services that can be produced by one worker or by one hour of work |
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Term
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Definition
| is a change in the ability of a firm to produce a given level of output with a given quantity of inputs |
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Term
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Definition
| technological change influenced by economic incentives |
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Term
| Pre-worker Production Function |
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Definition
| shows the relationship between capital per hour worked & real GDP per hour worked,holding technology constant |
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Term
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Definition
| ability of a government to enforce the laws of the country, particularly with respect to protecting private property & enforcing contracts |
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Term
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Definition
| is an unexpected event that causes the short-run aggregate supply curve to shift |
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Term
| Short-run Aggregate Supply Curve |
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Definition
| shows the relationship in the short run between the price level & the quantity of real GDP supplied by firms |
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Term
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Definition
| records of a countries net exports.net investment income, and net transfers |
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Term
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Definition
| shows investments a country has made abroad & foreign investments received by the country |
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Term
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Definition
| records relatively relatively minor transactions, such as migrant transfers & sales & purchases of non produced, non financial assets |
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Term
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Definition
| a record of a countries trade with other countries in goods, services, and assets |
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