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16 Cards in this Set
- Front
- Back
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resources
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anything used to produce a good or service
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factors of production
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land, labor, capital
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goods
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any tangible thing that people want
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services
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any intangible thing that people want
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economics
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study of how individuals/firms/society experience virtually limitless wants
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microeconomics
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study of choices made by consumers, producers and firms
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scarcity
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the amount of resources available at any point
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market economy
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choices made in private markets
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market
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a collection of buyers and sellers exchanging goods , services or resources
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market structure
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defined by what is exchanged in the market and also by the degree of competition
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opportunity cost
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the highest valued alternative forgone in making a choice
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marginal cost
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additional opportunity cost of producing one more unit
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law of increasing costs
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as output increases marginal cost increases
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characteristics of a perfectly competitive market
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many buyers / sellers
perfect information about price free entry exit every firm sels the exact same product |
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law of demand
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as price rises quantity demanded falls
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law of supply
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when price increases, quantity supplied also increases
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