Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
50 Cards in this Set
- Front
- Back
the most desirable alternative given up as a result of a decision
|
opportunity cost
|
|
limited quantities of resourves to meet unlimited wants
|
scarcity
|
|
a graph that show alternative ways to use an economy's resources
|
productions possibilites curve
|
|
using fewer resources than an economy is capable of using
|
underutilization
|
|
actions or activities that one person performs for another
|
services
|
|
physical objects such as clothes or shoes
|
goods
|
|
the effort that people devote to a task for which they are paid
|
labor
|
|
using resources in such a way as to maximize the production of goods and services
|
efficiency
|
|
the three goods and services that are used to make goods and services
|
factors of production
|
|
a situation in which a good or service is unavailable
|
shortage
|
|
the line on a production possibilities graph that shows the maximum possible output
|
production possibilities frontier
|
|
limited quantities of resources to meet unlimited wants
|
scarcity
|
|
the total value of all final goods and services produced in a particular economy
|
gross domestic product (GDP)
|
|
the concerns of the public as a whole
|
public interest
|
|
requires companies to provide full information about their products
|
public disclosure laws
|
|
someone who would not choose to pay for a certain good or service but would get the benefits if it were provided as a public good
|
free rider
|
|
goods and services produced for free or at greatly reduced prices
|
in-kind benefits
|
|
the part of the economy that involves the transactions of individuals and businesses
|
private sector
|
|
an income level below which income is insufficient to support families or households
|
poverty threshold
|
|
the study of the behavior and decision making of entire economics
|
macroeconomics
|
|
a graphic representation of a demand schedule
|
demand curve
|
|
goods that are used in place of one another
|
substitutes
|
|
consumers buy more of a good when its price decreases and less when its price increases
|
law of demand
|
|
a measure of how consumers react to a change in price
|
elasticity of demand
|
|
when consumers react to an increase in a good's price by consuming less of that good and more of other goods
|
substitution effect
|
|
the total amount of money a firm receives by selling goods or services
|
total revenue
|
|
two goods that are bought and used together
|
compliments
|
|
a good that consumers demand more of when their income increases
|
normal good
|
|
a graph of the quantity supplied of a good by all suppliers
|
market supply curve
|
|
the amount a supplier is willing and able to supply at a certain price
|
quantity supplied
|
|
fixed costs plus variable costs
|
total cost
|
|
a factor that can change
|
variable
|
|
government intervention in a market that affects the production of a good
|
regulation
|
|
a level of production in which the marginal product of labor increases as the number of workers increase
|
increasing marginal return
|
|
the additional income from selling one more unit of a good; sometimes equal to price
|
marginal revenue
|
|
a chart that lists how much of a good a supplier will offer at different prices
|
supply schedule
|
|
the change in output from hiring one additional unit of labor
|
marginal product of labor
|
|
when quantity supplied is not equal to quantity demanded in a market
|
disequilibrium
|
|
the financial and opportunity costs consumers pay when searching for a good or service
|
search costs
|
|
a price ceiling placed on rent
|
rent control
|
|
a situation in which the quantity demanded is greater than the quantity supplied, also known as excess demand
|
shortage
|
|
a situation in which quantity supplied is greater than quantity demanded, also known as excess supply
|
surplus
|
|
any factor that makes it difficult for a new firm to enter a market
|
barrier to entry
|
|
making a product different from other similar products
|
differentiation
|
|
the right to sell a good or service within an exclusive market
|
franchise
|
|
an illegal grouping of companies that discourages competition
|
trust
|
|
factors that cause a producer's average cost per unit to fall as output rises
|
economies of scale
|
|
a series of competitive price cuts that lowers the market price below the cost of production
|
price war
|
|
a market structure in which a large number of firms all produce the same product
|
perfect competition
|
|
a market structure in which a few large firms dominate a market
|
oligopoly
|