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| The physical plants, machinery, and equipment used to produce other goods. Capital goods are human-made goods that do not directly satisfy human wants |
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| A Latin phrase that means while certain variables change, “all other things remain unchanged.” |
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| A positive association between two variables. When one variable increases, the other variable increases, and when one variable decreases, the other variable decreases. |
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| The study of how society chooses to allocate its scarce resources to the production of goods and services in order to satisfy unlimited wants. |
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| The creative ability of individuals to seek profits by taking risks and combining resources to produce innovative products. |
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Definition
| A zero association between two variables. When one variable changes, the other variable remains unchanged. |
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| A negative association between two variables. When one variable increases, the other decreases, and when one variable decreases, the other variable increases. |
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| The mental and physical capacity of workers to produce goods and services. |
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| A shorthand expression for any natural resource provided by nature. |
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| The branch of economics that studies decision making for the economy as a whole. |
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| The branch of economics that studies decision making by a single individual, household, firm, industry, or level of government. |
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Definition
| A simplified description of reality used to understand and predict the relationship between variables. |
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| An analysis based on value judgment. |
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Definition
| An analysis limited to statements that are verifiable. |
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Definition
| The basic categories of inputs used to produce goods and services. Resources are also called factors of production. Economists divide resources into three categories: land, labor, and capital. |
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Definition
| The condition in which human wants are forever greater than the available supply of time, goods, and resources. |
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Term
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Definition
| The ratio of the change in the variable on the vertical axis (the rise or fall) to the change in the variable on the horizontal axis (the run). |
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Term
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Definition
| The ability of an economy to produce greater levels of output, represented by an outward shift of its production possibilities curve |
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Term
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Definition
| ISBN: 0324408013 The accumulation of capital, such as factories, machines, and inventories, that is used to produce goods and services |
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Term
| The principle that the opportunity cost increases as production of one output expands |
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Definition
| Law of increasing opportunity costs |
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Term
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Definition
| An examination of the effects of additions to or subtractions from a current situation |
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Term
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Definition
| The best alternative sacrificed for a chosen alternative |
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Term
| Production possibilities curve |
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Definition
| A curve that shows the maximum combinations of two outputs an economy can produce in a given period of time with its available resources and technology |
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Definition
| The body of knowledge applied to how goods are produced. |
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Definition
| An increase or a decrease in the quantity demanded at each possible price. An increase in demand is a rightward shift in the entire demand curve. A decrease in demand is a leftward shift in the entire demand curve. |
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Term
| Change in quantity demanded |
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Definition
| A movement between points along a stationary demand curve, ceteris paribus. |
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Term
| Change in quantity supplied |
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Definition
| A movement between points along a stationary supply curve, ceteris paribus. |
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Term
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Definition
| An increase or a decrease in the quantity supplied at each possible price. An increase in supply is a rightward shift in the entire supply curve. A decrease in supply is a leftward shift in the entire supply curve. |
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Term
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Definition
| A good that is jointly consumed with another good. As a result, there is an inverse relationship between a price change for one good and the demand for its “go together” good. |
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Term
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Definition
| The value of the difference between the price consumers are willing to pay for a product on the demand curve and the price actually paid for it. |
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Definition
| The net loss of consumer and producer surplus for underproduction or over-production of a product. |
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Term
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Definition
| A curve or schedule showing the various quantities of a product consumers are willing to purchase at possible prices during a specified period of time, ceteris paribus. |
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Definition
| A market condition that occurs at any price and quantity where the quantity demanded and the quantity supplied are equal. |
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Definition
| Any good for which there is an inverse relationship between changes in income and its demand curve. |
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Term
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Definition
| The principle that there is an inverse relationship between the price of a good and the quantity buyers are willing to purchase in a defined time period, ceteris paribus. |
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Term
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Definition
| The principle that there is a direct relationship between the price of a good and the quantity sellers are willing to offer for sale in a defined time period, ceteris paribus. |
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Term
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Definition
| Any arrangement in which buyers and sellers interact to determine the price and quantity of goods and services exchanged. |
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Definition
| Any good for which there is a direct relationship between changes in income and its demand curve. |
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Definition
| A mechanism that uses the forces of supply and demand to create an equilibrium through rising and falling prices. |
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Term
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Definition
| The value of the difference between the actual selling price of a product and the price producers are willing to sell it for on the supply curve. |
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Definition
| A market condition existing at any price where the quantity supplied is less than the quantity demanded. |
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Term
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Definition
| A good that competes with another good for consumer purchases. As a result, there is a direct relationship between a price change for one good and the demand for its “competitor” good. |
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Term
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Definition
| A curve or schedule showing the various quantities of a product sellers are willing to produce and offer for sale at possible prices during a specified period of time, ceteris paribus. |
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Term
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Definition
| A market condition existing at any price where the quantity supplied is greater than the quantity demanded. |
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Term
| What are the benefits of trade? |
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Definition
| you can produce more than the maximum output of the PPC |
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Term
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Definition
| Ability for a country to produce a good at a lower opportunity cost than another conmtry. |
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Term
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Definition
| Ability of a country to produce a good using fewer resources than another country. |
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