Ap Macro Chapter 3 Vocabulary

Front 1

market

Back 1

a place or service that enables buyers and sellers to exchange goods and services

Front 2

barter

Back 2

the direct exchange of goods and services without the use of money

Front 3

double coincidence of wants

Back 3

the situation that exists when A has what B wants and B has what A wants

Front 4

demand

Back 4

the amount of a product that people are willing and able to purchase at each possible price during a given period of time, everything else held constant

Front 5

quantity demanded

Back 5

the amount of a product that people are willing and able to purchase at a specific price

Front 6

law of demand

Back 6

the quantity of a well-defined good or service that people are willing and able to purchase during a particular period of time decreases as the price of that good or service rises and increases as the price falls, everything else held constant

Front 7

determinants of demand

Back 7

factors other than the price of the good that influence demand - income, tastes, prices of related goods and services, expectations, and number of buyers

Front 8

demand schedule

Back 8

a table or list of prices and the corresponding quantities demanded for a particular good or service

Front 9

demand curve

Back 9

a graph of a demand schedule that measures price on the vertical axis and quantity demanded on the horizontal axis

Front 10

normal goods

Back 10

goods for which demand increases as income increases

Front 11

inferior goods

Back 11

goods for which demand decreases as income increases

Front 12

substitute goods

Back 12

goods that can be used in place of each other; as the price of one rises, the demand for the other rises

Front 13

complementary goods

Back 13

goods that are used together; as the price of one rises, the demand for the other falls

Front 14

supply

Back 14

the amount of a good or service that producers are willing and able to offer for sale at each possible price during a period of time, everything else held constant

Front 15

quantity supplied

Back 15

the amount that sellers are willing and able to offer at a given price during a particular period of time, everything else held constant

Front 16

law of supply

Back 16

the quantity of a well-defined good or service that producers are willing and able to offer for sale during a particular period of time increases as the price of the good or service increases and decreases as the price decreases, everything else held constant

Front 17

determinants of supply

Back 17

factors other than the price of the good that influence supply - prices of resources, technology and productivity, expectations of producer, number of producers, and the prices of related goods and services

Front 18

supply schedule

Back 18

a table or list of prices and the corresponding quantities supplied of a particular good or service

Front 19

supply curve

Back 19

a graph of a supply schedule that measures price on the vertical axis and quantity supplied on the horizontal axis

Front 20

productivity

Back 20

the quantity of output produced per unit of resource

Front 21

equilibrium

Back 21

the price and quantity at which quantity demanded and quantity supplied are equal

Front 22

disequilibrium

Back 22

prices at which quantity demanded and quantity supplied are not equal at a particular price

Front 23

surplus

Back 23

a quantity supplied that is larger than the quantity demanded at a given price; it occurs whenever the price is greater than the equilibrium price

Front 24

shortage

Back 24

a quantity suppled that is smaller than the quantity demanded at a given price; it occurs whenever the price is less than the equilibrium price

Front 25

exchange rate

Back 25

the rate at which monies of different countries are exchanged

Front 26

price floor

Back 26

a situation in which the price is not allowed to decrease below a certain level

Front 27

price ceiling

Back 27

a situation in which the price is not allowed to rise above a certain level