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Definition
| The limited nature of society's resources |
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| The study of how society manages its scarce resources |
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| The property of society getting the most it can from scarce resources |
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| The property of distributing economic prosperity uniformly among the members of society |
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| Whatever must be given up to obtain some item |
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| People who systematically and purposefully do the best they can to achieve their objective |
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| A small incremental adjustment to a plan of action |
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Definition
| Something that induces a person to act |
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| An economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services |
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Definition
| The ability of an individual to own and exercise control over scarce resources |
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Definition
| A situation in which a market left on its own fails to allocate resources efficiently |
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| The impact of one person's actions on the well-being of a bystander |
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| The ability of a single economic actor to have substantial influence on market price |
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Definition
| The quantity of goods and services produced from each unit of labor input |
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Definition
| An increase in overall level of prices in the economy |
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Definition
| Fluctuations in economic activity, such as employment and production |
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Definition
| A group of buyers and sellers of a particular good or service |
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Definition
| A market in which there are many buyers and many sellers that each has a negligible impact on the market price |
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Definition
| The amount of a good that buyers are willing and able to purchase |
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Definition
| The claim that, other things equal, the quantity demanded of a good falls when the price of the good rises |
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Definition
| A table that shows the relationship between the price of a good and the quantity demanded |
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Definition
| A graph of the relationship between the price of a good and the quantity demanded. |
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Definition
| A good which, other things equal, an increase in income leads to an increase in demand |
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Definition
| A good for which, other things equal, an increase in income leads to a decrease in demand |
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Term
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Definition
| Two goods for which an increase in the price of one leads to an increase in the demand for the other |
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Term
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Definition
| Two goods for which an increase in the price of one leads to a decrease in demand for the other |
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Definition
| The amount of a good that sellers are willing and able to sell |
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Definition
| The claim that, other things equal, the quantity supplied of a good rises when the price of the good rises. |
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Definition
| A graph of the relationship between the price of a good and the quantity supplied |
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Definition
| A situation in which the market price has reached the level at which quantity supplied equals quantity demanded |
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Definition
| The price that balances quantity supplied and quantity demanded |
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Definition
| The quantity supplied and the quantity demanded at the equilibrium price |
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Definition
| A situation in which quantity supplied is greater than quantity demanded |
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Definition
| A situation in which quantity demanded is greater than quantity supplied |
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Term
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Definition
| The claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance |
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Term
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Definition
| A measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinants |
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| Price Elasticity of Demand |
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Definition
| A measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price |
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Definition
| The amount paid by buyers and received by sellers of a good, computed as price of the good times the quantity sold |
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| Income Elasticity of Demand |
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Definition
| A measure of how much the quantity demanded of a good responds to a change in consumers' income, computed as the percentage change in quantity demanded divided by the percentage change in income |
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| Price Elasticity of Supply |
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Definition
| A measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price |
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Definition
| A legal maximum on the price at which a good can be sold |
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Definition
| A legal minimum on the price at which a good can be sold |
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Definition
| The manner in which the burden of a tax is shared among participants in a market |
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