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Definition
| Rewards and penalties that motivate behavior. |
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| Good institutions align... |
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| Self-interest with social interest. |
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Term
| Opportunity cost of a choice |
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Definition
| The value of the opportunities lost. |
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Definition
| All trade-offs involve decisions about a little bit more or a little bit less |
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Term
| Tampering with the laws of supply and demand has consequences |
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Definition
| Government interference usually makes things worse |
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Term
| The importance of wealth and economic growth |
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Definition
| Wealth and growth bring higher standards of living |
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Definition
| Strong institutions foster economic growth |
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Term
| Booms and busts can't be avoided, but can be moderated |
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Definition
| Monetary and fiscal policies smooth out the ups and downs |
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Term
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Definition
| Rise in prices when the govt prints too much money |
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Term
| Central banking is a hard job |
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Definition
| There is a lag between policy making and its effect on the economy during which economic conditions can change |
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Term
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Definition
| most important tool in econ |
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Definition
| shows quantity demanded at different prices |
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Definition
| quantity that buyers are willing and able to purchase at a certain price |
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Term
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Definition
| when prices rise, quantity demanded falls, when prices fall, QD rises |
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Term
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Definition
| difference between maximum price a customer will pay and market price, measured by area below demand curve and above price |
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Term
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Definition
| curve moves up and to the right |
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Term
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Definition
| curve moves towards origin |
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Term
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Definition
| income, population, price of substitutes,price of complements, expectations, tastes |
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Term
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Definition
| good for which demand increases when income increases |
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Term
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Definition
| good for which demand decreases when income increases |
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Term
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Definition
| decrease in price of one good leads to decrease in demand of other good |
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Term
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Definition
| decrease in price of one good leads to increase in demand of another |
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Term
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Definition
| when prices rise quantity supplied rises, when prices fall, QS falls |
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Term
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Definition
| difference between market price and minimum price producers would sell for, area above the supply curve and below the price |
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Definition
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Definition
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Definition
| technological innovations, input prices, taxes and subsidies, expectations, entry or exit of producers, changes in opportunity costs |
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