Chapter 1 - Ten Principles of Economics;
Chapter 2 - Thinking Like an Economist;
Chapter 3 - Interdependence and the Gains from Trade;
Chapter 4 - The Market Forces of Supply and Demand;
Chapter 5 - Elasticity and Its Application
Terms : Hide Images
| 1720791292 | Scarcity | the limited nature of society's resources; it means that society has limited resources and therefore cannot produce all the goods and services people wish to have it means simply that needs and wants exceed the resources available to meet them | 0 | |
| 1720791293 | Economics | the study of how society manages its scarce resources the study of how society uses its scarce resources | 1 | |
| 1720791294 | Efficiency | the property of society getting the most it can from its scarce resources; it means that society is getting the maximum benefits from its scarce resources getting the most out of the resources used | 2 | |
| 1720791295 | Equality | the property of distributing economic prosperity uniformly among the members of society; it means that those benefits are distributed uniformly among society's members | 3 | |
| 1720791296 | Opportunity Cost | whatever must be given up to obtain some item; what you give up to get that item | 4 | |
| 1720791297 | Rational People | people who systematically and purposefully do the best they can to achieve their objectives, given the available opportunities | 5 | |
| 1720791298 | Marginal Change | a small incremental adjustment to a plan of action | 6 | |
| 1720791299 | Incentive | something that induces a person to act | 7 | |
| 1720791300 | Market Economy | an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services; the decisions of a central planner are replaced by the decisions of millions of firms and households an economy in which a substantial proportion of goods are allocated by the use of markets | 8 | |
| 1720791301 | Property Rights | the ability of an individual to own and exercise control over scarce resources the rights of an owner over property | 9 | |
| 1720791302 | Market Failure | a situation in which a market left on its own fails to allocate resources efficiency | 10 | |
| 1720791303 | Externality | the impact of one person's actions on the well-being of a bystander | 11 | |
| 1720791304 | Market Power | the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices; it refers to the ability of a single person or firm (or a small group) to unduly influence market prices | 12 | |
| 1720791305 | Productivity | the quantity of goods and services produced from each unit of labor input; the amount of goods and services produced by each unit of labor input | 13 | |
| 1720791306 | Inflation | an increase in the overall level of prices in the economy | 14 | |
| 1720791307 | Business Cycle | fluctuations in economic activity, such as employment and production; the irregular and largely unpredictable fluctuations in economic activity, as measured by the production of goods and services or the number of people employed | 15 | |
| 1722122823 | Circular-Flow Diagram | a visual model of the economy that shows how dollars flow through markets among households and firms | 16 | |
| 1722127286 | Production Possibilities Frontier | a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology | 17 | |
| 1722130938 | Microeconomics | the study of how households and firms make decisions and how they interact in markets | 18 | |
| 1722133015 | Macroeconomics | the study of economy-wide phenomena, including inflation, unemployment, and economic growth | 19 | |
| 1722136804 | Positive Statements | claims that attempt to describe the world as it is; they are descriptive | 20 | |
| 1722139124 | Normative Statements | claims that attempt to prescribe how the world should be; they are prescriptive | 21 | |
| 1722422578 | Absolute Advantage | the ability to produce a good using fewer inputs than another producer | 22 | |
| 1722422579 | Comparative Advantage | the ability to produce a good at a lower opportunity cost than another; the producer who gives up less of other goods to produce Good X has the smaller opportunity cost of producing Good X and is said to have a comparative advantage in producing it | 23 | |
| 1722422580 | Imports | goods produced abroad and sold domestically | 24 | |
| 1722422581 | Exports | goods produced domestically and sold abroad | 25 | |
| 1722528034 | Market | a group of buyers and sellers of a particular good or service; the buyers as a group determine the demand for the product, and the sellers as a group determine the supply of the product | 26 | |
| 1722528035 | Competitive Market | a market in which there are many buyers and many sellers so that each has a negligible impact on the market price | 27 | |
| 1722528036 | Quantity Demanded | the amount of a good that buyers are willing and able to purchase | 28 | |
| 1722528037 | Law of Demand | the claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises | 29 | |
| 1722528038 | Demand Schedule | a table that shows the relationship between the price of a good and the quantity demanded | 30 | |
| 1722528039 | Demand Curve | a graph of the relationship between the price of a good and the quantity demanded | 31 | |
| 1722528040 | Normal Good | a good for which, other things being equal, and increase in income leads to an increase in demand; if the demand for a good falls when income falls | 32 | |
| 1722528041 | Inferior Good | a good for which, other things being equal, and increase in income leads to a decrease in demand; if the demand for a good rises when income falls | 33 | |
| 1722528042 | Substitutes | two goods for which an increase in the price of one leads to an increase in the demand for the other; when a fall in the price of one good reduces the demand for another good; they are often pairs of goods that are used in place of each other | 34 | |
| 1722528043 | Complements | two goods for which and increase in the price of one leads to a decrease in the demand for the other; when a fall in the price of one good raises the demand for another good; they are often pairs of goods that are used together | 35 | |
| 1722706173 | Quantity Supplied | the amount of a good that sellers are willing and able to sell | 36 | |
| 1722706174 | Law of Supply | the claim that, other things being equal, the quantity supplied of a good rises when the price of the good rises | 37 | |
| 1722706175 | Supply Schedule | a table that shows the relationship between the price of a good and the quantity supplied | 38 | |
| 1722706176 | Supply Curve | a graph of the relationship between the price of a good and the quantity supplied | 39 | |
| 1722706177 | Equilibrium | a situation in which the market price has reached the level at which quantity supplied equals quantity demanded | 40 | |
| 1722706178 | Equilibrium Price | the price that balances quantity supplied and quantity demanded | 41 | |
| 1722706179 | Equilibrium Quantity | the quantity supplied and the quantity demanded at the equilibrium price | 42 | |
| 1722706180 | Surplus | a situation in which quantity supplied is greater than quantity demanded | 43 | |
| 1722706181 | Shortage | a situation in which quantity demanded is greater than quantity supplied | 44 | |
| 1722706182 | Law of Supply and Demand | the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance | 45 | |
| 1722706183 | Elasticity | a measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinants; to measure how much consumers respond to changes in these variables | 46 | |
| 1722706184 | 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 | 47 | |
| 1722706185 | Total Revenue | the amount paid by buyers and received by sellers of a good, computed as the price of the good times the quantity sold | 48 | |
| 1722706186 | Income Elasticity of Demand | a measure of how much the quantity demanded 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 | 49 | |
| 1722706187 | 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 price of the second good | 50 | |
| 1722706188 | Price Elasticity of Supply | 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 | 51 |
