Chapters One Thru Five Midterm One Test Vocab In Book

the limited nature of societys rsources

the study of how society manges its care resources

the property of society getting the most it can from its scarece resources

the property of distributing economic prosperity uniformely among the members of society

whatever yu must give up to obtain some item

people who systematicaly and purposefully do the best they can to achieve their objectives

a small incremntal adjustment to a plan of action

something that induces a person to act

an economy that allocates resources through the decentrialized deicions of many firms and households as they interact in markets for goods and services

the ability of an individual to own and exercise control over scarce resources

a situation in which a marke left on itws own fails to allocate resources efiecently

the impact of one persons actions on the well being of a bystander

the ability of a single economic actor to have substantial influence on market prices

the quanitty of goods and services produced from each unit of labor input

an increase in the overall level of prices in the economy

fluctuation sin economic activity such as emplyment and production

the imputs or land labor capitol

a visual model of the economy that shows how dollars flow through markets

among household and firms

a graph that shows the comibations of output that the economy can possibly produce given the available factors of production and the availabe production technology

the study of how households and firms make decions and how they interact in markets

the study of economy wide phenomena including inflation unemployment and economic growth

claims that atempt to escribe th world as it is

claims that attempt to prescribe how the world should be

the ability to produce a good using fewer imputs than another prodcer

whatever must be given up to ovbtain some item

the ability to produce a good at a lower opportunity cost than another produce

goods produced abroad and sold domestically

goods produced domestically and sold abroad

people face trade offs

cost of something that your wiling to give up

people think at the margins

people respond to incentives

trades can make everyone better off

markets are usually good way to organize economic activity

governments can sometimes improve market outcomes

countries standard of living relies on the produciton of goods

price rises when gov prints to much money

society faces short run trade off between inflation and unemplyment

something you own yoruself

the area you rent or buy for your business

the workforce that is finishing your job for you

a group of buyers and sellers of a particular good or servcice

a market in which there are many byers and many sellers o that each has a negligible impact on the market price

the amount of a good that buyers are wiling and able to purchase

the claim that other things being equal the quanitiy demanded of a pgood falls when the price of the good rises

a table that shows the relationoship between theprice of a good and the quanity demanded

a graph of the relationship between the price of a good and the quanity demanded

a god for which other things being equal and increase in income leads to an increase in demand

a good for whiich other thiing being equal and increase in income leads to a decrease in demand

two goods for which an increase in the price of one leads to an increase in the deamnd for the other

two goods for which an increase in the price of one leads to a decrease in the demand for the other

the amount of a good that sellers are willing an able to sell

the claim that other things being equal the quanitity supplied of a good rises when the price of the good rises

a table that shows the relatioship between the price of a good an the quanitty supplied

a graph of the relationhip between the price of a good and the quanitity supplied

a situation in which the market price has reached the level at which quanity supplied equlas quantity demadned

the price that balances quanitty supplied and quanity demanded

the quantity supplied and the quantity demanded at the equilbrium price

to much of one thing

quanitity demanded is greathe than quantity supplied

the claim that the price of any good adjusts to bring the quanitty supplied and the quantity demanded fo rthat good into balance

a measure of the responsiveness of quantity demanded or quantiy suppled to a changein one of its determinants

a measure of how much the quanitty demanded of a good responds to a change in the price of that good.

the amount paid by buyers and recieved by sellers of a good such that price of the good times quanitity sold

a measure of how much the quanitty demanded of a good responds to a change in income

how much of one item responds to the change in price of another good