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Definition
| the study of how societies deal with the issue of Scarcity |
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Definition
| economic reality that the Factors of Production are limited |
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Definition
| things (land labor and capital) that must be combined to provide goods/services |
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Definition
| natural resources and raw material |
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Definition
| physical and mental work needed to make a good/service |
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Definition
| tools and machines (technology etc?) |
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| money used to purchase tools and machines |
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Term
| Capital Goods vs. Consumer Goods |
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Definition
| Capital Goods make Consumer Goods |
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Definition
| skills of the business owner or the ability to take risk and the management skills needed to combine the factors of production |
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Definition
| when basic economic questions are answered based on custom and ritual |
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Term
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Definition
| when basic economic questions are answered by a central |
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Term
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Definition
| when basic economic questions are answered based on Supply and Demand (where the interests of producers and consumers intersect) |
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Term
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Definition
| mix of free of enterprise and government |
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Term
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Definition
| the value of the next best alternative when an economic decision is made |
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Term
| Production Possibilities Frontier (PPF) |
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Definition
| illustrates the combination of 2 products that can be produced within existing resources. |
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Term
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Definition
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Term
| Constant Opportunity Costs |
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Definition
| when the PPF is a straight-diagonal line |
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Term
| Increasing Opportunity Costs |
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Definition
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Term
| Principle of Increasing Opp. Costs |
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Definition
| as production shifts from one product to another there reaches a point where less of the second product is produced while you are giving up (opportunity cost) more and more of the first product. |
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Term
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Definition
| Changes in the amount of products produced by one worker |
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Term
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Definition
| nations should only produce those products they produce better than other countries |
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Term
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Definition
| The ability of a country to produce more of a product than another country using the same amount of resources or the ability of a country to produce the same amount of a product as another country using fewer resources |
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Term
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Definition
| occurs when a nation produces a product least inefficiently when compared to another nation |
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Term
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Definition
| output: number of products being produced input: amount of labor needed to make a product |
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Definition
| the amount of a product consumers are willing to purchase at all possible prices |
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Term
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Definition
| consumers are willing to purchase more of a product a lower prices than they are at higher prices |
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Term
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Definition
| listing or a chart which shows the amount of a product consumers are willing to purchase at all possible prices |
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Term
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Definition
| a downward sloping illustration of a demand schedule |
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Term
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Definition
| refers to changes in income adjusted for the effects of inflation |
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Term
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Definition
| government spending for which it receives no goods or services in return |
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Definition
| the degree to which the demand for a product will change due to a change in the price of that product |
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Term
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Definition
| refers to products whose demand is very sensitive to price changes. Large changes in demand due to changes in price |
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Term
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Definition
| refers to products whose demand is not very price sensitive. Little or no change in demand due to a change in price |
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Definition
| the amount of goods/services businesses are willing to produce/provide to a market at all possible prices |
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Term
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Definition
| businesses are will to provide more of a product at higher prices than they are at lower prices |
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Term
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Definition
| listing or a chart of the amount of a product that will be supplied at all possible prices |
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Term
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Definition
| an upward sloping illustration of a Supply Schedule |
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Term
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Definition
| costs are what businesses pay to produce a product price is what the consumer pays |
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Definition
| the amount of products produced by one worker |
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Term
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Definition
| reducing government regulation on the economy and businesses |
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Term
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Definition
| price at which Demand equals Supply |
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Term
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Definition
| supply is greater than demand/demand is less than supply |
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Term
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Definition
| demand is greater than supply/supply is less than demand |
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Definition
| a legal maximum on what can be charged for certain products |
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Definition
| an example of a price ceiling tends to cause an artificial shortage |
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Definition
| legal minimum that can be charged for certain products |
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Definition
| an example of a price floor tends to cause an artificial surplus |
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Term
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Definition
| money that has other uses other than its use as money |
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Definition
| Money that has no other use other than its use as money |
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Term
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Definition
| occurs when a nation?s money is valued as being worth a certain amount of gold and can be exchanged for gold |
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| Inconvertible Flat Standard |
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Definition
| Money is not backed by anything tangible |
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Term
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Definition
| occurs when a nation?s money is valued as being worth a certain amount of other nations? money as determined on international money markets |
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Term
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Definition
| relative prices between nations |
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Term
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Definition
| relative changes in GDP growth |
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Term
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Definition
| the demand for a nation?s Financial Assets |
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