Term
|
Definition
| The inputs used to produce goods and services |
|
|
Term
|
Definition
| The relationship between the quantity of inputs used to make a good and the quantity of output of that good |
|
|
Term
| Marginal Product of Labor |
|
Definition
| The increase in the amount of output from an additional unit of labor |
|
|
Term
| Diminishing Marginal Product |
|
Definition
| The property whereby the marginal product of an input declines as the quantity of the input increases |
|
|
Term
| Value of the Marginal Product |
|
Definition
| The marginal product of an input times the price of the output |
|
|
Term
|
Definition
| The equipment and structures used to produce goods and services |
|
|
Term
|
Definition
| The amount of money today that would be needed, using prevailing interest rates, to produce a given future amount of money |
|
|
Term
|
Definition
| The amount of money in the future that an amount of money today will yield, given prevailing interest rates |
|
|
Term
|
Definition
| The accumulation of a sum of money in, say, a bank account, where the interest earned remains in the account to earn additional interest in the future |
|
|
Term
|
Definition
|
|
Term
|
Definition
| The reduction of risk achieved by replacing a single risk with a large number of smaller, unrelated risks |
|
|
Term
|
Definition
| Risk that affects only a single company |
|
|
Term
|
Definition
| Risk that affects all companies in the stock market |
|
|
Term
|
Definition
| The study of a company's accounting statements and future prospects to determine its value |
|
|
Term
| Efficient Markets Hypothesis |
|
Definition
| The theory that asset prices reflect all publicly available information about the value of an asset |
|
|
Term
|
Definition
| The description of asset prices that rationally reflect all available information |
|
|
Term
|
Definition
| The path of a variable whose changes are impossible to predict |
|
|
Term
|
Definition
| The uncompensated impact of one person's actions on the well-being of a bystander |
|
|
Term
| Internalizing the Externality |
|
Definition
| Altering incentives so that people take account of the external effects of their actions |
|
|
Term
|
Definition
| The proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own |
|
|
Term
|
Definition
| The costs that parties incur in the process of agreeing to and following through on a bargain |
|
|
Term
|
Definition
| The property of a good whereby a person can be prevented from using it |
|
|
Term
|
Definition
| The property of a good whereby one person's use diminishes other people's use |
|
|
Term
|
Definition
| Goods that are both excludable and rival in consumption |
|
|
Term
|
Definition
| Goods that are neither excludable nor rival in consumption |
|
|
Term
|
Definition
| Goods that are rival in consumption but not excludable |
|
|
Term
|
Definition
| Goods that are excludable but not rival in consumption |
|
|
Term
|
Definition
| A person who receives the benefit of a good but avoids paying for it |
|
|
Term
|
Definition
| A study that compares the costs and benefits to society of providing a public good |
|
|
Term
|
Definition
| A parable that illustrates why common resources are used more than is desirable from the standpoint of society as a whole |
|
|
Term
|
Definition
| A firm that is the sole seller of a product without close substitutes |
|
|
Term
|
Definition
| A monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms |
|
|
Term
|
Definition
| The business practice of selling the same good at different prices to different customers |
|
|
