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| the value of the entire output produced annually within a country's borders, adjusted for price changes |
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| changes in government expenditures and/or changes in taxes to achieve particular macroeconomic goals |
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| changes in the money supply, or the rate of growth of the money supply, to achieve particular macroeconomic goals |
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| weighted average of the prices of all goods and services |
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| a measure of the price level |
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| a widely cited index number for the price level: the weighted average of prices of a specific set of goods and services purchased by a typical household |
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| the year chosen as a point of reference or basis of comparison for prices in other years; a benchmark year |
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| increase in the price level and is usually measured on an annual basis |
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person's current-dollar amount of a person's income |
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the percentage of the civilian force that is unemployed: unemployment rate=number of unemployed persons/civilian labor force |
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| the percentage of the civilian noninstitutional population that is employed: employment rate=number of employed persons/civilian noninstitutional population |
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| labor force participation rate |
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| the percentage of the civilian noninstitutional population that is in the divilian labor force. labor force participation rate+ civilian labor foce/civilian onninstitutional population |
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| unemployment due to the natural "frictions" of the economy, which is caused by changing market conditions and is represented by qualified individuals with transferable skills who change jobs |
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| unemployment due to structural changes in the economy that eliminate some jobs and create other jobs for which the unemployed are unqualified |
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| unemployment due to structural changes in the economy that eliminate some jobs and create other jobs for which the unemployed are unqualified |
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| unemployment caused by frictional and structural factors in the economy. Natural unemployment rate=frictional unemployment rate+structural unemployment rate |
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| the condition that exists when the unemployment rate is equal to the natural unemployment rate |
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| cyclical unemployment rate |
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| the difference between the unemployment rate and the natural unemployment rate |
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| anything that gives a person utility or satisfaction |
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| anything that gives a person disutility or dissatisfaction |
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| natural resources like minerals, forests, water, and unimproved land |
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| physical and mental talents that people contribute to the production process |
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| consists of produced goodsd that can be used as inputs for further production, such as machinery, tools, computers, trucks, buildings, and factories |
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| particular talent that some people have for organizing the resources of land, labor, and capital to produce goods, seek new business opportunitites, and develop new ways of doing things |
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| condition in which our wants are greater than the limited resources available to satisfy them |
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| means of deciding who gets what quantites of the available resources and goods, ex dollar price |
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| science of scarcity of science of how infdividuals and societies deal with the fact that wants are greater the limited resources available to satisfy them |
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| the most highly valued opportunity or alternative forfeited when a choice is made |
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| when individuals make decisions by comparing marginal benefits to marginal costs |
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| production possibilities frontier |
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represents the combination of two goods that can be produced in a certain period of time under the conditions of a given state of technology and fully employed resources |
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| an economy is this if it is producing the max output with given resources and technology |
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| if producing less than the max output with given resources and technology |
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| law of increasing opportunity costs |
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| as more of a good is produced, the opportunity costs of producing that good increase |
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| the body of skills and knowledge concerning the use of resources in production. An advance in technology commonly refers to the ability to produce more output with a fixed amount of resources or the ability to produce the same output wiht fewer resources |
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| the process of giving up one thing for something else |
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| phrase that means "before," as in before a trade |
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| phrase that means "after" as in after a trade |
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| how much of one thing is given up for how much of something else |
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| the costs associated with the time and effort needed to search out, negotiatie, and consummate an exchange |
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| the situation where someone can produce a good at lower opportunity cost than someone else can |
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| an abstract representation of the real world designed with the intent to better understand the world |
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| any place people come together to trade |
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| the willingness and ability of buys to purchase different quantities of a good at different prices during a specific time period |
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| as the price of a good rises, the quantity demanded of the good falls, and as the price of a good falls, the quantity demanded of the good rises |
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| a latin term meaning " all other things constant" or "nothign else changes" |
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| the numerical tabulation of the quantity demanded of a good at different prices. A demand schedule is teh numerical representation of the law of demand |
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(downward-sloping) demand curve |
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Definition
| the graphical representation of the law of demand |
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| the price of a good in money terms |
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| the price of a good in terms of another good |
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Term
| law of diminishing marginal utility |
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Definition
| for a given time period, teh marginal (additional) utility or satisfaction gained by consuming equal successive units of a good will decline as the amount consumed increases |
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| the price of a good. For example, if the price of oranges is one dollar, this is its own price |
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| a good the demand for which rises (falls) as income rises (falls) |
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a good the demand for which falls (rises) as income rises (falls) |
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| a good the demand for which does not change as income rises or falls |
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| two goods that satisfy similar needs or desires. If two goods are substitutes, the demand for one rises as the price of the other rises (or the demand for one falls as the price of the other falls) |
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| two goods that are used jointly in consumption. if two goodsd are complements, the demand for one rises as the price of the other falls (or the demand for one falls as the price of the other rises) |
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| the willingness and ability of sellers to produce an doffer to sell different quantities of a good at diff prices during a specific time period |
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| as the price of a good rises, the quantity supplied of the good rises, and as the price of a glld falls, the quantity supplied of the good falls |
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| (supward-sloping) supply curve |
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Definition
this graphical representation of the law of supply |
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Definition
| the numerical tabulation of the quantity supplied of a good at different prices. a supply schedule is the numerical representatino fo the law of supply |
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| a monetary payment by government to a producer of a good or service |
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| the quantity that corresponds to equilibrium price. The quantity at which the amount of the good that buyers are willing and able to buy equals the amount that sellers are willing and able to sell, and both equal the amount actually bought and sold |
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Definition
a state of either surplus or shortage in a market |
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| the price quantity combination from which there is no tendency for buyers or sellers to move away. |
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| the total market value of all final goods and services produced annually within a country's borders |
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| the dollar value contributed to a final good at each stage of production |
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| a payment to a person that is not made in return for goods and services currently supplied |
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| business purchases of capital goods such as machinery andf actories, and purchases of new residential housing |
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| recurrent swings in real gdp |
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