Term
|
Definition
| an organization that transforms resources (inputs) into products (outputs). Firms are the primary producing units in a market economy |
|
|
Term
|
Definition
| a person who organizes, manages, and assumes the risks of a firm, taking a new idea or a new product iand turning it into a successful business |
|
|
Term
|
Definition
| the consuming units in an economy |
|
|
Term
| product or output markets |
|
Definition
| the markets in which goods and services are exchanged |
|
|
Term
|
Definition
| the markets in which the resources used to produce products are exchanged |
|
|
Term
|
Definition
| the input / factor market in which households supply work for wages to firms that demand labor |
|
|
Term
|
Definition
| the input / factor market in which households supply their savings, for interest or for claims to future profits, to firms that demand funds to buy capital goods |
|
|
Term
|
Definition
| the input / factor market in which households supply land or other real property in exchange for rent |
|
|
Term
|
Definition
| the inputs into the land production process. land, labor, and capital are the three key factors of production |
|
|
Term
|
Definition
| the amount (number of units) of a product that a household would buy in a given period if it could buy all it wanted at the current market price |
|
|
Term
|
Definition
| a table showing how much of a given product a household would be willing to buy at different prices |
|
|
Term
|
Definition
| a graph illustrating how much of a given product a household would be willing to buy at different prices |
|
|
Term
|
Definition
| the negative relationship between price and quantity demanded: as price rises, quantity demanded increases. As price fails, quantity demanded increases |
|
|
Term
|
Definition
| happiness or satisfaction |
|
|
Term
|
Definition
| the sum of all a household's wages, salaries, profits, interest payments, rents, and other forms of earnings in a given period of time. it is a flow measure |
|
|
Term
|
Definition
| the total value of what a household owns minus what it owes. it is a stock measure |
|
|
Term
|
Definition
| goods for which demand goes up when income is higher and for which demand goes down when income is lower |
|
|
Term
|
Definition
| goods for which demand tends to fall when income rises |
|
|
Term
|
Definition
| goods that can serve as replacements for one another; when the price of one increases, demand for the other goes up |
|
|
Term
|
Definition
|
|
Term
| complements, complementary goods |
|
Definition
| goods that "go together"; a decrease in the price of one results in an increase in demand of the other, and vice versa |
|
|
Term
|
Definition
| the change that takes place in a demand curve corresponding to a new relationship between quantity demanded of a good and price of that good. the shift is brought about by a change in the original conditions |
|
|
Term
| movement along a demand curve |
|
Definition
| the change in quantity demanded brought about by a change in price |
|
|
Term
|
Definition
| the sum of all the quantities of a good or service demanded per period by all the households buying in the market for that good or service |
|
|
Term
|
Definition
| the difference between revenues and costs |
|
|
Term
|
Definition
| the amount of a particular product that a firm would be willing and able to offer for sale at a particular price during a given time period |
|
|
Term
|
Definition
| a table showing how much of a product firms will sell at different prices |
|
|
Term
|
Definition
| the positive relationship between price and quantity of a good supplied: an increase in market prices will lead to an increase in quantity supplied, and a decrease in market price will lead to a decrease in quantity supplied. |
|
|
Term
|
Definition
| a graph illustrating how much of a product a firm will sell at different prices |
|
|
Term
| movement along a supply curve |
|
Definition
| the change in quantity supplied brought about by a change in price |
|
|
Term
|
Definition
| the change that takes place in a supply curve corresponding to a new relationship between quantity supplied of a good and the price of that good. the shift is brought about by a change in the original conditions |
|
|
Term
|
Definition
| the sum of all that is supplied each period by all producers of a single product |
|
|
Term
|
Definition
| the condition that exists when quantity supplied and quantity demanded are equal. at equilibrium, there is no tendency for price to change |
|
|
Term
| excess demand or shortage |
|
Definition
| the condition that exists when quantity demanded exceeds quantity supplied at the current price |
|
|
Term
|
Definition
| the condition that exists when quantity supplied exceeds quantity demanded at the current price |
|
|
