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Definition
| One who manages a household (how society manages it's scarce resources - or all it's resources) |
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Definition
| The limited nature of society's resources |
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Definition
| The property of society getting the most it can from its scarce resources |
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Definition
| The property of distributing economic prosperity uniformly among the members of society |
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Definition
| Whatever must be given up to obtain some item |
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Definition
| People who systematically and purposefully do the best they can to achieve their objectives |
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Definition
| 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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Definition
| 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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Term
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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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Definition
| The impact of one person's actions on the well-being of a bystander |
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Term
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Definition
| The ability of a single economic actor (or small group of actors) to have a substantial influence on market prices |
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Definition
| The quantity of goods and services produced from each unit of labor input |
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Term
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Definition
| An increase in the overall level of prices in the economy |
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Term
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Definition
| Fluctuations in economic activity, such as employment and production |
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Term
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Definition
| A visual model of the economy that shows how dollars flow through markets among households and firms. |
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Term
| Production possibilities frontier |
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Definition
| A graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology |
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Term
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Definition
| The study of how households and firms make decisions and how they interact in markets |
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Term
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Definition
| The study of economywide phenomena, including inflation, unemployment, and economic growth |
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Term
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Definition
| Claims that attempt to describe the world as it is |
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Term
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Definition
| The ability to produce a good using fewer inputs than another producer |
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Term
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Definition
| Whatever must be given up to obtain some item |
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Term
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Definition
| The ability to produce a good at a lower opportunity cost than another producer |
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Term
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Definition
| Goods produced abroad and sold domestically |
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Term
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Definition
| Goods produced domestically and sold abroad |
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Term
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Definition
| A group of buyers and sellers of a particular good or service |
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Term
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Definition
| A market in which there are many buyers and many sellers so that each has a negligible impact on the market price |
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Term
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Definition
| The amount of a good that buyers are willing and able to purchase |
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Term
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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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Term
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Definition
| The table that shows the relationship between the price of a good and the quantity demanded |
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Term
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Definition
| A graph of the relationship between the price of a good and the quantity demanded |
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Term
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Definition
| A good for which, other things equal, an increase in income leads to an increase in demand |
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Term
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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 the demand for the other |
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Term
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Definition
| The amount of a good that sellers are willing and able to sell |
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Term
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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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Term
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Definition
| A table that shows the relationship between the price of a good and the quantity supplied |
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Term
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Definition
| A graph of the relationship between the price of a good and the quantity supplied |
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Term
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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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Term
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Definition
| The price that balances quantity supplied and quantity demanded |
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Term
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Definition
| The quantity supplied and the quantity demanded at the equilibrium price |
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Term
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Definition
| A situation in which quantity supplied is greater than quantity demanded |
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Term
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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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