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32 Cards in this Set
- Front
- Back
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Positive Externalities |
A benefit that is enjoyed by a third party as a result of an economic transaction |
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Negative externatlaties |
the cost suffered by a third party as the result of an economic transaction |
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Public disclosure laws |
Laws requiring companies to provide full information about their products |
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Thinking at the margin |
Deciding whether to do or use another unit of some resource |
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Factors of Production |
Land, Labor, and Capital |
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Oppurtunity Cost |
The most desireable alternative given up as the result of a decision |
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Physical Goods |
All goods that are used to produce other goods |
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Law of Demand |
As price increases, demand decreases. (Vice-versa)
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Market Failure |
A situation in which the market does not distribute resources efficiently |
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Guns or Butter |
More or less military or consumer goods |
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Interest Grouop |
A private organization that tries to pursuade officials to vote according to the group members interests |
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Inferior goods |
A good that consumers demand less of when income goes up |
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Normal goods |
A good that consumers deamand more of when their incomes increase |
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Law of Supply |
Tendency of suppliers to offer more of a good at a higher price |
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Capital goods |
Goods that are used in producing other goods |
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Luxury goods |
Demand increases proportionally as income rises |
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Price ceiling |
When the price charged is less than equilibrium |
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Profit motive |
The force that encourages people and organizations to improve their material well being |
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Expenditure |
The action of spending funds |
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Competition |
THe rivalry among sellers to attract consumers while lowering cost |
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Tax Breaks |
A tax concession of advantage allowed by a government |
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Price floor |
When price charged is above equilibrium |
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Free Rider |
Someone who would not pay for a public good, but would get the benefit anyway |
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Efficiency |
Using resources to maximize production |
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Shortage |
A situation where a good or service is unavailable |
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Incentive |
An expectation that encourages people to behave in a certain way |
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Revenue |
Amount of money a firm recieves by selling goods and services |
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Subsidy |
Money granted by the government to help a company |
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Scarcity |
A limited quantity of resources to meet unlimited needs |
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Quota |
A limited or fixed number of things |
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Labor |
Effort that people devote to a task for which they are paid |
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Gross Domestic Product (GDP) |
The total value of final goods and services |
