Term
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Definition
| "an industry where per-unit costs decline as the output increases making the most economical size of the firm very large; If one firm supplies the entire output, consumers pay less than if many small firms produce the output. Example: Electric power is generated more efficiently on a very large scale. Therefore, electric power generation is considered to be a natural monopoly. The monopoly is allowed to exist with some governmental regulation." |
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| """gifts of nature"" that are present without human intervention, also called land; Examples: coal, water, timber; see factors of production" |
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| "desires felt by consumers for basic necessities of life—food, clothing and shelter; see wants" |
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| """take home pay""; the actual amount of money received after taxes and other payroll deductions have been subtracted from gross income" |
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Definition
| total investment (gross) less a depreciation allowance to account for wear and/or obsolescence |
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| the gross domestic product expressed in the prices of the particular year. see GDP and Real GDP |
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Term
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Definition
| "goods that have a short useful life—socks, light bulbs, etc.—or satisfy consumer wants and/or needs by being used up—hamburgers, etc." |
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Definition
| "those natural resources—oil, coal, iron, etc.—that do not replenish themselves; Once used, they are gone forever." |
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Term
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Definition
| "the minimum profit that a firm must earn in order to induce it to stay in production; At this level of profit, the opportunity costs of the entrepreneur retaining capital in the business are just covered by total revenue." |
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Term
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Definition
| study of the economy based upon value judgments about economic policies; statement of what ought to be; see positive economics |
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Definition
| "the work a person does to earn a living; also called job, trade, work, business, profession, vocation" |
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Definition
| an industry or a market containing only a few firms |
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Term
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Definition
| the buying and selling of US Treasury bonds and securities in the open securities market by the Federal Reserve System in order to change bank reserves and influence the nation’s money supply |
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Term
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Definition
| "(value of) the next best alternative that must be given up when a choice is made; not all alternatives, just the next best choice the product (good or service); the quantity or amount produced with a given input" |
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Term
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Definition
| legal organization of a business with more than one person owning/managing the business |
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Term
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Definition
| 1. amount paid for use of goods or services; 2. a monthly installment paid on an account |
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Term
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| literally means “per person”; Example: Per capita GDP is the gross domestic product divided by the population |
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Term
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Definition
| a market structure characterized by 1. many buyers and sellers; 2. a homogeneous product; 3. the freedom of entry and exit; no barriers to entry; |
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Term
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Definition
| one who carries out an action or fulfills or discharges his duty or command; one who carries an action or task through to completion |
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Term
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Definition
| total money income received by individuals before paying personal taxes |
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Term
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Definition
| the purchase of an asset (with some degree of risk) for the purpose of earning future income |
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Term
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Definition
| "in insurance, the contract between the insurer and the insured setting forth the premium, what risks are covered or not covered, the procedures to establish a claim and all other terms and conditions applicable" |
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Term
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Definition
| the study of the economy as it exists; descriptive or predictive analysis of what is; see normative economics |
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Definition
| a nation or society that has little or no industry or has a low level of technology |
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