Terms : Hide Images
| 560808104 | Scarcity | The limited nature of society's resources | |
| 560808105 | Economics | The study of how society manages its scarce resources | |
| 560808106 | Efficiency | Property of society getting the most it can from its scarce resources | |
| 560808107 | Equity | The property of distributing economic prosperity fairly among the members of society | |
| 560808108 | Opportunity Cost | Whatever must be given up to obtain some item | |
| 560808109 | Market Economy | An economy that allocates resources throughout the decentralized decisions of many firms and households as they interact in markets for goods and services | |
| 560808110 | Externality | The impact of one person's actions on the well-being of a bystander | |
| 560808111 | Inflation | An increase in the overall level of prices in the economy | |
| 560808112 | Phllips Curve | A curve that shows the short-run tradeoff between inflation and unemployment | |
| 560808113 | Business Cycle | Fluctuations in economic activity, such as employment and production | |
| 560808114 | Circular-Flow Diagram | A visual model of the economy that shows how dollars flow through markets and firms | |
| 560808115 | Production Possibilities Curve | A graph that show the combinations of output that the economy can possibly produce given the available factors of production and the available production technology | |
| 560808116 | Microeconomics | The study of how households and firms make decisions and how they interact in markets | |
| 560808117 | Macroeconomics | The study of economy-wide phenomena, including inflation, unemployment, and economic growth | |
| 560808118 | Positive Staements | Claims that attempt to describe the world as it is | |
| 560808119 | Normative Statements | Claims that attempt to prescribe how the world should be | |
| 560808120 | Interdependence | A reciprocal relation between interdependent entities (objects or individuals or groups) | |
| 560808121 | Specialization | To focus on a particular area. | |
| 560808122 | Absolute Advantage | The comparison among producers of a good according to their productivity | |
| 560808123 | Comparative Advantage | The comparison among producers of a good according to their opportunity cost | |
| 560808124 | Imports | Goods produced abroad and sold domestically | |
| 560808125 | Exports | Ggoods produced domestically and sold abroad | |
| 560808126 | The Law of Demand | The claim that, other things equal, the quantity demanded of a good falls when the price of the good rises | |
| 560808127 | Normal Good | A good for which, other things equal, an increase in income leads to an increase in demand | |
| 560808128 | Inferior Good | A good for which, other things equal, an increase in income leads to a decrease in demand | |
| 560808129 | Susbstitutes | Two goods for which an increase in the price of one leads to an increase in the demand for the other | |
| 560808130 | Compliments | Two good for which an increase in the price of one leads to a decrease in the demand for the other | |
| 560808131 | The Law of Supply | The claim that, other things equal, the quantity supplied of a good rises when the price of the good rises | |
| 560808132 | Equlibrium | A situation in which the price has reached the level where quantity supplied equals quantity demanded | |
| 560808133 | Surplus | A situation in which quantity supplied is greater than quantity demanded | |
| 560808134 | Shortage | A situation in which quantity demanded is greater than quantity supplied | |
| 560808135 | Adam Smith | Scottish political economist whos works helped to create the modern academic discipline of economics and provided one of the best-known intellectual rationales for free trade and capitalism. | |
| 560808136 | John Keynes | An English economist, whose radical ideas had a major impact on modern economic and political theory. Most remembered for advocating interventionist government policy, by which the government would use fiscal and monetary measures to aim to mitigate the adverse effects of economic recessions, depressions, and booms. | |
| 560808137 | Elaticity | A measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants | |
| 560808138 | Price Elasticity of Demand | A measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price | |
| 560808139 | Income Elasticity of Demand | A measure of how much the quantity demand3ed of a good responds to a change in consumers' income, computed as the percentage change in quantity demanded divided by the percentage change in income | |
| 560808140 | Cross-Price Elasticity of Demand | A measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in the price of the second good | |
| 560808141 | Price Elasticity of Demand | A measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price | |
| 560808142 | Price Ceiling | A legal maximum on the price at which a good can be sold | |
| 560808143 | Price Floor | A legal minimum on the price at which a good can be sold | |
| 560808144 | Tax Incidence | The manner in which the burden of a tax is shared among participants in a market | |
| 560808145 | Welfare Economics | The study of how the allocation of resources affects economic well-being | |
| 560808146 | Consumer Surplus | A buyers' willingness to pay minus the amount the buyer actually pays | |
| 560808147 | Producer Surplus | The amount a seller is paid for a good minus the seller's cost | |
| 560808148 | Cost | The value of everything a seller must give up to produce a good | |
| 560808149 | Deadweight Loss | The fall in total surplus that results from a market distortion, such as a tax | |
| 560808150 | The Laffer Curve | A curved graph that illustrates the theory that, if tax rates rise beyond a certain level, they discourage economic growth, thereby reducing government revenues. | |
| 560808151 | Supply Side Economics | The branch of economics that concentrates on measures to increase output of goods and services in the long run. The basis of supply-side economics is that marginal tax rates should be reduced to provide incentives to supply additional labor and capital, and thereby promote long-term growth. | |
| 560808152 | Tariff | A tax on goods produced abroad and sold domestically | |
| 560808153 | Import Quota | A limit on the quantity of a good that can be produced abroad and sold domestically | |
| 560808154 | Coase theorem | 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 | |
| 560808155 | Pigovian Tax | A tax enacted to correct the effects of a negative externality. | |
| 560808156 | Private goods | Goods that are both excludable and rival. | |
| 560808157 | Public | Goods that are neither excludable nor rival | |
| 560808158 | Free Rider | A person who receives the benefit of a good but avoids paying for it | |
| 560808159 | Budget Surplus | An excess of government receipts over government spending | |
| 560808160 | Budget Deficit | A shortfall of tax revenue from government spending | |
| 560808161 | Average Tax Rate | Total taxes paid divided by total income | |
| 560808162 | Marginal Tax Rate | The extra taxes paid on an additional dollar of income | |
| 560808163 | Lump-sum Tax | A tax that is the same amount for every person | |
| 560808164 | Proportional Tax | A tax for which higher income taxpayers and low income tax payers pay the same fraction of income | |
| 560808165 | Regressive Tax | A tax for which higher income taxpayers pay a smaller fraction of their income than do low income taxpayers | |
| 560808166 | Progressive Tax | A tax for which high-income taxpayers pay a larger fraction of their income than do low income taxpayers. | |
| 560808167 | Total Revenue | a. in a market-the amount paid by buyers and received by sellers of a goods, computed as the price of the good times the quantity sold b. for a firm-the amount a firm receives for the sale of its output | |
| 560808168 | Total Cost | The value of the inputs a firm uses in production | |
| 560808169 | Profit | Total revenue minus total cost | |
| 560808170 | Explicit Costs | Input costs that require an outlay of money by the firm | |
| 560808171 | Implicit Costs | Input costs that do not require an outlay of money by the firm | |
| 560808172 | Economic Profit | Total revenue minus total cost including both explicit and implicit costs | |
| 560808173 | Accounting Profit | Total revenue minus total explicit cost | |
| 560808174 | Production Function | The relationship between quantity of inputs used to make a good and the quantity of output of that good | |
| 560808175 | Marginal Product | The increase in output that arises from an additional unit of input | |
| 560808176 | Diminishing Marginal Product | The property whereby the marginal product of an input declines as the quantity of the input increases | |
| 560808177 | Fixed Costs | Costs that do not vary with the quantity of output produced | |
| 560808178 | Variable Costs | Costs that vary with the quantity of output produced | |
| 560808179 | Average Total Cost | Total cost divided by the quantity of output | |
| 560808180 | Average Fixed Cost | Fixed costs divided by the quantity of output | |
| 560808181 | Average Variable Cost | Variable costs divided by the quantity of output | |
| 560808182 | Marginal Cost | An increase in total cost that arises from an extra unit of production | |
| 560808183 | Efficient Scale | The quantity of input that minimizes average total cost | |
| 560808184 | Economies of Scale | The property whereby long run average total cost falls as the quantity of output increases | |
| 560808185 | Diseconomies of Scale | The property whereby long run average total cost rises as the quantity of output increases | |
| 560808186 | Constant Return to Scale | The property whereby long run average total cost stays the same as the quantity of output changes | |
| 560808187 | Competitive market | A market with many buyers and sellers trading identical products so that each buyer and seller is a price taker | |
| 560808188 | Average Revenue | Total revenue divided by the quantity sold | |
| 560808189 | Marginal Revenue | The change in total revenue from an additional unit sold | |
| 560808190 | Sunk Cost | A cost that has already been committed and cannot be recovered | |
| 560808191 | Monopoly | Q firm that is the sole seller of a product without close substitutes | |
| 560808192 | Natural Monopoly | A monopoly that arises because a single firm can supply a good of service to an entire market at a smaller cost than could two or more firms | |
| 560808193 | Price Discrimination | The business practice of selling the same good at different prices to different customers | |
| 560808194 | Oligopoly | A market structure in which only a few sellers offer similar or identical products | |
| 560808195 | Monopolistic Completion | A market structure in which many firms sell products that are similar but not identical | |
| 560808196 | Collusion | An agreement among firms in a market about quantities to produce or prices to charge | |
| 560808197 | Cartel | A group of firms acting in unison | |
| 560808198 | Nash Equilibrium | A situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen. | |
| 560808199 | Game Theory | The study of how people behave in strategic situations | |
| 560808200 | Factors of Production | The inputs used to produce goods and services | |
| 560808201 | Marginal Product of Labor | The increase in the amount of output from an additional unit of labor | |
| 560808202 | Lorenz Curve | A curve showing the distribution of income in an economy. The cumulated percentage of families (income receivers) is measured along the horizontal axis and the cumulated percentage of income is measured along the vertical axis. | |
| 560808203 | Capital | The equipment and structures used to produce goods and services |
