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| 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 its 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 time. |
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| people who systematically and purposefully do the best they can to achieve their objectives. |
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| a small incremental adjustment to a plan of action. |
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| enforced so that individuals can own and control scarce resources. |
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| 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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| the ability of a single person to unduly influence market prices. |
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| the quantity of goods and services produced from each unit of labor input. |
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Definition
| an increase in the overall level of prices in the economy. |
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Term
| Production Possibilities Frontier (PPF) |
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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 technology. |
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Definition
| if the economy is getting all it can from the scarce resources it has available. |
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Definition
| if the economy is producing less than it could from the resources it has available. |
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Term
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Definition
| claims that attempt to describe the worlds as it is. |
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| claims that attempt to prescribe how the world should be. |
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Definition
| the ability to produce a good using fewer inputs than another producer. |
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Definition
| the ability to produce a good at a lower opportunity cost than another producer. |
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| Trade can benefit everyone in society because it allows people to _____ in activities in which they have a comparative advantage. |
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| good produced abroad and sold domestically. |
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Term
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| good produced domestically and sold abroad. |
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Term
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| 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 so that each has a negligible impact on the market price. |
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Definition
| a market that has the exact same goods and such a numerous amount of buyers and sellers they cannot individually influence the prices. |
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Definition
| the amount of a good the buyers are willing and able to purchase. |
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Definition
| the claim that, other things equal, the quantity of a good falls when the price of the good rises. |
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Definition
| a good which, other things equal, an increase in income leads to a decrease in demand. |
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Definition
| a good for which, increase in the price of a good leads to an increase in the demand for the other. |
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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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Definition
| two goods for which an increase in the price increase in the price of one leads to a decrease in the demands for the other. |
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Definition
| the amount of a good that sellers were 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 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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