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Definition
| that society has limited resoucres and therefore cannot produce all the goods and services people wish to have |
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Definition
| the sutdy of how society manages its scarce resources |
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Definition
| that societ is getting the maximum benefits from its scarce resources |
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Definition
| that those benefits are distributed fairly among society's members |
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Term
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| an item is what you give up to get that item |
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Term
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Definition
| systematically and purposely do the best they can to achieve their objectives, given the oppurtunies they have |
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Definition
| describe small incremental adjustments to an existing plan of action |
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Definition
something that induces a person to act
( reward, threaten ) |
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Definition
| an economy that allocates resources through the decentralized decisions of many firms and household as they interact in markets for goods and services |
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Term
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Definition
| the ability of an individual to own and exercise control over scarce resources |
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Definition
| a situation in which a market left on its own fails to allocate resources efficiently |
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Definition
| the impact of one person's actions on the well-being of a bystander |
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Definition
| The ability of a single economic acter to have a substantial influence on market prices |
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Definition
| the quantity of goods and services produced from each hour of a worker's time |
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Definition
| an increase in the overall level of prices in the economy |
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Definition
| Fluctuations in economic activity, such as employment and production |
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Definition
| a visual model of the economy that shows how dollars flow through markets among households and firms[image] |
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Term
| PPF ( Production possibilities frontier ) |
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Definition
| a graph that shows the combination of output that the economy can possibly produce given production and the available production technology[image] |
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Term
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Definition
| the study of how households and firms make decisions and how they interact in markets |
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Term
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Definition
| the study of economy-wide phenomena including inflation, unemployment, and economic growth |
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Term
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Definition
| claims that attempt to describe the world as it is |
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Term
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Definition
| claims that attempt to prescribe how the world should be |
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Term
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Definition
| the ability to produce a good using fewer inputs than another producer |
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Term
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Definition
| the ability to produce a good at a lower opportunity cost than another producer |
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Term
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Definition
| whatever must be given up to obtain some item |
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Term
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Definition
| goods produced abroad and sold domestically |
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Term
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Definition
| goods produced domestically and sold abroad |
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Term
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Definition
| a group of buyers and sellers of a particular good or service |
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Term
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Definition
| a market in which there are many buyers and many sellers so that each has a negligible price |
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Term
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Definition
| the amount of a good that buyers are willing and able to purchase |
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Term
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Definition
| the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises |
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Term
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Definition
| a table that shows the relationship between the price of a good and the quantity demanded |
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Term
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Definition
| a graph of the relationship between the price of a good and the quantity demanded |
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Term
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Definition
| a good for which, other thing equal, an increase in income leads to increase in demand |
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Term
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Definition
| a good for which, other things equal, an increase in income leads to descrease in demand |
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Term
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Definition
| two goods for which an inscrease in the price of one leads to an inscrease in the demand for the other |
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Term
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Definition
| two goods for which an increase in the price of one leads to a descrease in the demand for the other |
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Definition
| the amount of a good that sellers are willing and able to sell |
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Term
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Definition
| the claim that, others things equal, the quantity supplied of a good rises when the price of the good rises |
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Term
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Definition
| a table that shows the relationship between the price of a good and quantity supplied |
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Term
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Definition
| a graph of the relationship between the price of a good and the quantity supplied |
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Definition
| a situation in which the market price has reached the level at which quantity supplied equals quantity demanded |
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Definition
| the price that balances quantity supplied and quantity demanded |
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Definition
| the quantity supplied and the quantity demanded at the equilibrium price |
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Definition
| a situation in which quantity supplied is greater than quantity demanded |
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Term
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Definition
| a situation in which quantity demanded is greater than quantity supplied |
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Term
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Definition
| the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance |
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