Term
A situation in which unlimited wants exceed the limited resources available to fulfill those wants
|
|
Definition
|
|
Term
The study of the choices people make to attain their goals, given their scarce resources.
|
|
Definition
|
|
Term
| A group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade |
|
Definition
|
|
Term
The idea that because of scarcity, producing more of one good or service means producing less of another good or service.
|
|
Definition
|
|
Term
The highest-valued alternative that must be given up to engage in an activity.
|
|
Definition
|
|
Term
| Analysis concerned with what is. |
|
Definition
|
|
Term
Analysis concerned with what ought to be. |
|
Definition
|
|
Term
| The study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices. |
|
Definition
|
|
Term
The study of the economy as a whole, including topics such as inflation, unemployment, and economic growth
|
|
Definition
|
|
Term
| practical application of a incention |
|
Definition
|
|
Term
| development of a new good or a new process for making a good |
|
Definition
|
|
Term
The processes a firm uses to turn inputs into outputs of goods and services
|
|
Definition
|
|
Term
| Any product that you can touch |
|
Definition
|
|
Term
|
Definition
|
|
Term
| total amount recieved for selling a good or service |
|
Definition
|
|
Term
The inputs used to make goods and services
|
|
Definition
|
|
Term
Manufactured goods that are used to produce other goods and services
|
|
Definition
|
|
Term
|
Definition
|
|
Term
The ability of the economy to increase the production of goods and services
|
|
Definition
|
|
Term
| The ability of an individual, a firm, or a country to produce more of a good or service than competitors, using the same amount of resources. |
|
Definition
|
|
Term
| The ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors. |
|
Definition
|
|
Term
| A market for goods—such as computers—or services—such as medical treatment. |
|
Definition
|
|
Term
A market for the factors of production, such as labor, capital, natural resources, and entrepreneurial ability
|
|
Definition
|
|
Term
A market with few government restrictions on how a good or service can be produced or sold or on how a factor of production can be employed.
|
|
Definition
|
|
Term
| A curve that shows the relationship between the price of a product and the quantity of the product demanded. |
|
Definition
|
|
Term
| The rule that, holding everything else constant, when the price of a product falls, the quantity demanded of the product will increase, and when the price of a product rises, the quantity demanded of the product will decrease. |
|
Definition
|
|
Term
| The change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods that are substitutes. |
|
Definition
|
|
Term
| The change in the quantity demanded of a good that results from the effect of a change in the good’s price on consumers’ purchasing power. |
|
Definition
|
|
Term
A good for which the demand increases as income rises and decreases as income falls.
|
|
Definition
|
|
Term
A good for which the demand increases as income falls and decreases as income rises.
|
|
Definition
|
|
Term
Goods and services that can be used for the same purpose
|
|
Definition
|
|
Term
Goods and services that are used together
|
|
Definition
|
|
Term
| A curve that shows the relationship between the price of a product and the quantity of the product supplied. |
|
Definition
|
|
Term
The rule that, holding everything else constant, increases in price cause increases in the quantity supplied, and decreases in price cause decreases in the quantity supplied.
|
|
Definition
|
|
Term
| A situation in which quantity demanded equals quantity supplied. |
|
Definition
|
|
Term
A situation in which the quantity supplied is greater than the quantity demanded.
|
|
Definition
|
|
Term
| A situation in which the quantity demanded is greater than the quantity supplied. |
|
Definition
|
|
Term
| A legally determined maximum price that sellers may charge |
|
Definition
|
|
Term
A legally determined minimum price that sellers may receive.
|
|
Definition
|
|
Term
A benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.
|
|
Definition
|
|
Term
| The difference between the highest price a consumer is willing to pay for a good or service and the price the consumer actually pays. |
|
Definition
|
|
Term
The additional benefit to a consumer from consuming one more unit of a good or service. .
|
|
Definition
|
|
Term
The additional cost to a firm of producing one more unit of a good or service.
|
|
Definition
|
|
Term
| The difference between the lowest price a firm would be willing to accept for a good or service and the price it actually receives. |
|
Definition
|
|
Term
The reduction in economic surplus resulting from a market not being in competitive equilibrium.
|
|
Definition
|
|
Term
A market in which buying and selling take place at prices that violate government price regulations.
|
|
Definition
|
|
Term
The cost borne by the producer of a good or service.
|
|
Definition
|
|
Term
The total cost of producing a good or service, including both the private cost and any external cost
|
|
Definition
|
|
Term
The benefit received by the consumer of a good or service
|
|
Definition
|
|
Term
The total benefit from consuming a good or service, including both the private benefit and any external benefit
|
|
Definition
|
|
Term
| A situation in which the market fails to produce the efficient level of output. |
|
Definition
|
|
Term
Government taxes and subsidies intended to bring about an efficient level of output in the presence of externalities.
|
|
Definition
| Pigovian taxes and subsidies |
|
|
Term
| An approach that involves the government imposing quantitative limits on the amount of pollution firms are allowed to emit or requiring firms to install specific pollution control devices. |
|
Definition
| Command-and-control approach |
|
|
