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Definition
| the study of the production, distribution and consumption of goods and services |
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| the social arangements that determine what is produced how it is produced and for whom it is produced. |
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| an institution that brings together buyers and sellers of goodds or services |
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Definition
| an economy in which most economic decisions are made by buyers and sellers, who may be individualsor firms |
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Definition
| an economy in which government either makes or strongly influences how most economic decisions are made |
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Definition
| markets where the buyers and sellers make transactions without the governments approval |
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Definition
| the way in which the work required to produce a good or service is divided into task performed by different workers |
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Definition
| when workers or firms focus on particular tasks in the overal production process for which they are well-suited |
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Definition
| when the average cost of producing each individual unit declines as total output increases |
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Definition
| the trend in which buying and selling in markets have increasingly crossed national borders |
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Definition
| goods and services that are produced domestically and sold inn another country |
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Definition
| goods and services produced abroad and then sold domestically |
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Definition
| the branch of economics that focuses on actions of particular actors within the economy, like households, workers and business firms |
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Definition
| the branch of economies that focuses on the economy as a whole including issues like growth, unemployment inflationa nd the balance of trade |
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Term
| goods and services amrket |
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Definition
| a market in which firms are sellers of what they produce and households are buyers |
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Definition
| the market in which households sell thei labor as workers to buisiness firms |
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Definition
| the market in which those who save money provide financial capital and receive a rate of rretrun from those who whish to raise money and pay a rate of return |
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Term
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Definition
| the payment from those who have received financial capital to those who provided it. |
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Term
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Definition
| the amount of an original financial investement, before any rate of return is paid |
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Term
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Definition
| a payment calculated as a percentage of the original amount saved or borrowed and paid by the borrower to the saver |
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Term
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Definition
| a simplified representation of an object or situation that includes enough of the key features to be useful |
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Term
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Definition
| economic policies that affect bank lending and interest rates |
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Term
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Definition
| economic policies tha t involve government spending and taxes. |
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Definition
| a diagram which shows what choices are possible gien the prices |
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Term
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Definition
| another name for the budget constraint |
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Term
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Definition
| the level of satisfaction or pleasure that people receive from their choices |
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Term
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Definition
| a payment to make up for the risk of not being repaid in full |
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Term
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Definition
| rise in the overall level of prices |
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Term
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Definition
| the cost of having to wait for repayment |
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Term
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Definition
| when interest payments accumulate so that in later itme periods the interest rate is paid on the interest that has been earned and reinvested in previous years |
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Term
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Definition
| whatever must be given up to abtain something that is desired |
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Term
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Definition
| comparing the benefits and cost of choosing a little more or a little less of a godd |
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Term
| law of diminishing marginal utility |
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Definition
| as a person receives more of a good the marginal utility from each additional unit of the good is smaller than from the previous unit |
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Term
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Definition
| costs that were incurred in the past and cannot be recovered and thus should not affect current decisions |
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Term
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Definition
| the quantity of goods and services sold by the firm multiplied by the selling priceof these goods and services |
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Definition
| all the cost that a firm must incur in the process of productions |
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Term
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Definition
| total revenues minus total cost for a firm |
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Term
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Definition
| when total cost exceeds total revenue for a frim loss: when total cost exceeds total revenue for a firm |
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Term
| production possibilities frontier |
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Definition
| a diagram that shows the combinations of output that are possible for an economy to produce |
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Term
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Definition
| when one nation can produce a product at a lower cost relative to another nation |
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Term
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Definition
| the goods in which a nation has its greatest procudtivity advantage or its smalles produtivity disadvantage; also, the goods that a nation can produce at a lower cost when measured in terms of opportunity cost |
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Definition
| international trade of goods within the same industry |
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| splitting up the value chain |
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Definition
| when many of the different stages of producing a good happen in different geographic locations |
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