Terms : Hide Images
| 14023042132 | scarcity | the imbalance between limited productive resources and unlimited human wants | 0 | |
| 14023042134 | opportunity cost | the value of the sacrifice made to pursue a course of action | 1 | |
| 14023042136 | marginal benefit(MB) | the additional benefit received from the consumption of the next unit of a good or service | 2 | |
| 14023042137 | marginal cost(MC) | the additional cost of producing one more unit of output | 3 | |
| 14023042139 | production possibilities | the different quantity of goods that an economy can produce with a given amount of scare resources. | 4 | |
| 14023042141 | absolute advantage | the ability to produce more of a good than all other producers | 5 | |
| 14023042142 | comparative advantage | the ability to produce a good at a lower opportunity cost than all other producers. | 6 | |
| 14023042144 | productive efficiency | production of maximum output for a given level of technology and resources | 7 | |
| 14023042145 | allocative efficiency | production of the combination of goods and service that provides the most net benefit to society; achieved when the marginal benefit equals the marginal cost(MB=MC) of the next unit. | 8 | |
| 14023042150 | Law of demand | all else equal, when the price of a good rises, the quantity demanded of that good falls |  | 9 |
| 14023042153 | substitution effect | the change in quantity demanded resulting from a change in the price of one good relative to the price of other goods | 10 | |
| 14023042154 | income effect | due to a higher price, the change in quantity demanded that results from a change in the consumer's purchasing power (or real income) | 11 | |
| 14023042158 | normal goods | a good for which demand increases with an increase in consumer income | 12 | |
| 14023042159 | inferior good | a good for which demand decreases with an increase in consumer income | 13 | |
| 14023042160 | substitute goods | two goods are consumer substitutes if they provide essentially the same utility to the consumer | 14 | |
| 14023042161 | complementary goods | two goods that provide more utility when consumed together than when consumed separately | 15 | |
| 14023042167 | shortage | a situation in which, at the going market priec, the quantity demanded exceeds the quantity supplied. |  | 16 |
| 14023042169 | surplus | a situation in which, at the going market price, the quantity supplied exceeds the quantity demanded | | 17 |
| 14023042171 | consumer surplus | the difference between buyer's willingness to pay and the price actually paid | 18 | |
| 14023042172 | producer surplus | the difference between the price received and the marginal cost of producing the good | 19 | |
| 14023042173 | elasticity | measures the sensitivity, or responsiveness, of a choice to a change in an external factor | 20 | |
| 14023042174 | price elasticity of demand | -measures the sensitivity of consumers' quantity demanded for good X when the price of good X changes |  | 21 |
| 14023042183 | total revenue test | total revenue rises with a price increase if demand is price inelastic and falls with a price increase if demand is price elastic | 22 | |
| 14023042185 | income elasticity | a measure of how sensitive the consumption of a good is to a change in consumer's income(Ei) |  | 23 |
| 14023042188 | inferior good (income elasticity value) | less than zero | 24 | |
| 14023042189 | cross-price elasticity of demand | a measure of how sensitive the consumption of good X is to a change in the price of good Y |  | 25 |
| 14023042190 | values of cross- price elasticity of demand for substitutes | greater than zero | 26 | |
| 14023042193 | lump-sum tax | -a tax levied on all firms or consumers regardless of the amount produced | 27 | |
| 14023042199 | minimum wage | a price floor in the labor market | 28 | |
| 14023042204 | law of diminishing marginal utility | in a given time period, as consumption of an item increases, the marginal(additional) utility from that item falls | 29 | |
| 14023042206 | utility maximizing rule | the consumer choose amounts of goods X and Y, with his or her limited income, so that the marginal utility per dollar spent is equal for both goods. |  | 30 |
| 14023042208 | accounting profit | the difference between total revenue and total explicit(明显的) cost | 31 | |
| 14023042209 | economic profit | the difference between total revenue and total production cost, including the implicit(含蓄的) costs | 32 | |
| 14023042213 | long run | a period or time long enough for the firm to alter all production inputs, including the plant size. | 33 | |
| 14023042222 | average variable cost(AVC) | total variable cost divided by the level of output AVC=TVC/Q | 34 | |
| 14023042223 | average total cost (ATC) | total cost divided by the level of output ATC=TC/Q | 35 | |
| 14023042225 | economies of scale | the downward part of the long-run average total cost (LRATC) curve where LRATC falls as plant size increase | 36 | |
| 14023042228 | perfect competition | the most competitive market structure is characterized by many small price-taking firms producing a standardized production an industry in which there are no barriers to entry or exit | 37 | |
| 14023042229 | profit-maximizing rule | all firms maximizing profit by producing where marginal return (MR) = marginal cost(MC) | 38 | |
| 14023042230 | break-even point | the output where average total cost (ATC) is minimized and economic profit is zero P=MR=MC=ATC | 39 | |
| 14023042231 | shutdown point | when price falls below AVC losses are equal to TFC | 40 | |
| 14023042233 | normal profit | the opportunity of the entrepreneur;s talents; another way of saying the firm is earning zero economic profit | 41 | |
| 14023042239 | natural monopoly | the case where economies of scale are so extensive that it is less costly for one firm to supply the entire range of demand than for multiple firms to share the market | 42 | |
| 14023042241 | price discrimination | the sale of same product to different groups of consumers at different price | 43 | |
| 14023042243 | monopolistic competition | a market structure characterized by a few small firms producing a differentiated product with easy entry into the market | 44 | |
| 14023042244 | monopolistic competition long-run equilibrium | -P>MR>MC, so there is allocative inefficiency -P=ATC, so economic profit equals zero | 45 | |
| 14023042248 | oligopoly | a very diverse market structure characterized by a small number of interdependent large firms, producing either a standardized or differentiated product in a market with a barrier to entry | 46 | |
| 14023042253 | nash equilibrium | in game theory, the result when all players choose the action that maximizes their payoffs, given the actions of other players | 47 | |
| 14023042255 | dominant strategy | a strategy that is always the best strategy to pursue, regardless of what a rival is doing | 48 | |
| 14023042256 | collusive oligopoly | models where firms agree to work together to mutually improve their situations | 49 | |
| 14023042257 | cartel | a group of firms that agree to maximize their joint profits rather than compete | 50 | |
| 14023042259 | marginal revenue product(MRP) | the change in the firm's total revenue from the hiring of an additional unit of an input | 51 | |
| 14023042260 | marginal resource cost(MRC) | the change in the firm's total cost from the hiring of an additional unit of an input | 52 | |
| 14023042266 | public goods | goods that are both nonrival and excludabe | 53 | |
| 14023042270 | marginal social cost | - the marginal cost of production plus the marginal external cost -with negative externalities, the marginal social cost curve lies above the market supply curve | 54 | |
| 14023042272 | positive externality | the existence of spillover benefits for third parties from the production of a good | 55 | |
| 14023042274 | negative externality | the existence of spillover costs for third parties from the production of a good | 56 | |
| 14023042275 | progressive tax | a tax where the proportion of income paid in taxes rises as income rises | 57 | |
| 14023042276 | regressive tax | a tax where the proportion of income paid in taxes decreases as income rises | 58 | |
| 14023042277 | proportional tax | a tax where the proportion of income paid in taxes is constant no matter the level of income | 59 |
