Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/32

Click to flip

32 Cards in this Set

  • Front
  • Back
scarcity
limited resources relative to wants and needs
resources
land, labor, machinery, and other inputs used to produce goods and services
opportunity cost
the best alternative forgone to produce or consume something else; what you five up to get something else.
unemployment
a situation in which resources are not fully used in production
consumer goods
goods that are consumed by consumers
capital goods
goods such as machinery and factories, which are used to produce other goods
private goods
goods provided by business firms
public goods
goods provided by the government
demand schedule
a table showing the quantities that consumers are willing to buy at alternative prices during a specified time period
law of supply
the is a direct (positive) relationship between price and quantity supplied
supply schedule
a table showing the quantities that suppliers are willing to sell at alternative prices during a specified time period
supply curve
a graph showing the quantities that suppliers are willing to sell at alternative prices during a specified time period
equilibrium
a state of balance; a point at which quantity demanded equals quantity supplied
surplus
a situation in which quantity supplied is greater than quantity demanded
equitable
fair
spillovers
costs of benefits of private market activity shifted onto society at large
market power
the ability to influence the market price of a product
Consumer price index (CPI)
a measure of the average price level
microeconomics
the study of individual areas of activity within the total economy
gross domestic product (GDP)
total output of an economy
private
individual people and businesses
public
government
demand curve
a graph showing the quantities that consumers are willing to buy at alternative prices during a specified time period
economic growth
a sustained increase in production, represented by an forward shift of the production possibilities curve.
efficient
using resources in such a way as to maximize the output from them
inflation
a rise in the average price level in the economy
law of demand
there is an inverse (negative) relationship between price and quantity demanded
macroeconomics
the study of the total economy
pure competition
a market in which many independent producers compete to sella standardized product to many independent buyers
production possibilities curve
an economic concept explaining scarcity and the need for choices; a graph showing alternate combinations of the maximum amounts of two different goods that can be produced during a particular time period if the economy's resources are efficiently and fully employed
services
activities (such as hair cuts, health care, and education) that are consumed (used) by consumers
shortage
a situation in which quantity demanded is greater than quantity supplied