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91 Cards in this Set
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The amount of good that is brought at a certain price under certain conditions or, the context of this chapter, the relationship between a good price and the amount that people are willing to buy. |
Demand |
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The relationship between a good's price and the amount that producers are willing to provide for consumers. |
Supply |
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Value that is directly related to the benefits their owners receive through their use |
Value in use |
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Which is what a particular good is worth in exchange for some other good. |
Value in exchange |
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Amount of money that a buyer pays the seller for a particular item. |
Price |
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Amount of money that a buyer pays the seller for a particular item. |
Price |
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Prices at which goods can be sold in an open market with many potential sellers and buyers. |
Market prices |
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Amount of money that a buyer pays the seller for a particular item. |
Price |
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Prices at which goods can be sold in an open market with many potential sellers and buyers. |
Market prices |
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Which states that as ones supply of a specific good or service increases, the satisfaction derived from each additional unit tends to decrease. |
Diminishing marginal utility |
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One unit increase of a product, tends to become smaller with each additional unit |
Marginal utility |
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The total amount of satisfaction received from possessing a particular amount of a good. |
Total utility |
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One of the most important principles of economics is the fundamental.. |
Law of demand |
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Says that when the price of a good falls, consumers tend to buy MORE of that good or of other items because they can do so without giving up anything. |
Income effect |
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Indicates that people tend to substitute less expensive goods for ones whose prices have risen. |
Substitution effect |
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Indicates that people tend to substitute less expensive goods for ones whose prices have risen. |
Substitution effect |
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A list of numbers that compares price with quantity demanded. |
Demand schedule |
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Indicates that people tend to substitute less expensive goods for ones whose prices have risen. |
Substitution effect |
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A list of numbers that compares price with quantity demanded. |
Demand schedule |
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Which is a graphic representation of the quantity of goods purchased at different prices. |
Demand curve |
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Five key factors that can shift the demand curve |
1) tastes and preferences 2) income 3) population 4) price of related good 5) consumer expectations |
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A good whose demand is directly related to consumers incomes is called |
Normal good |
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A good whose demand is directly related to consumers incomes is called |
Normal good |
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Demand for those items decreases as consumers incomes increase, and vice versa |
Inferior good |
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A good whose demand is directly related to consumers incomes is called |
Normal good |
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Demand for those items decreases as consumers incomes increase, and vice versa |
Inferior good |
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A good capable of being used in place of another |
Substitutes |
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A good whose demand is directly related to consumers incomes is called |
Normal good |
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Demand for those items decreases as consumers incomes increase, and vice versa |
Inferior good |
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A good capable of being used in place of another |
Substitutes |
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A good often used in conjunction with another |
Complements |
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Law states the direct relationship between the price of a good and the amount that suppliers will make available |
Law of supply |
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Law states the direct relationship between the price of a good and the amount that suppliers will make available |
Law of supply |
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A graphic representation of the quantity of goods supplied at different prices |
Supply curve |
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The bicycle manufacturers are willing to produce for |
supply |
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Is the point a which quantity demanded and quantity supplied are equal |
Equilibrium |
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Is the point a which quantity demanded and quantity supplied are equal |
Equilibrium |
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Suppliers of a good may not produce enough to satisfy consumers demand at the price for which that good is sold |
Shortage |
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Is the point a which quantity demanded and quantity supplied are equal |
Equilibrium |
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Suppliers of a good may not produce enough to satisfy consumers demand at the price for which that good is sold |
Shortage |
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Quantity supplied of a good is greater then the quantity demanded at a given price |
Surplus |
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If price goes up, people will buy less .. ( this phenomenon is known as) |
Elastic (price elasticity of demand) |
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If price goes up, people will buy less .. ( this phenomenon is known as) |
Elastic (price elasticity of demand) |
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Consumers will pay very high prices for a particular commodity because they feel there are no substitutes |
Inelastic |
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If price goes up, people will buy less .. ( this phenomenon is known as) |
Elastic (price elasticity of demand) |
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Consumers will pay very high prices for a particular commodity because they feel there are no substitutes |
Inelastic |
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When government place a limit on how high a producer many change for his product, we call this limit a .. |
Price ceiling |
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Price levels set above the equilibrium prices |
Price floors |
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Sings that are used by consumers an producers to determine how much of a good to buy or sell at a given price and time |
Market signals |
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Goods that have a life expectancy of less then three years |
Nondurable goods |
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Goods that have a life expectancy of less then three years |
Nondurable goods |
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Which are expected to last at least three years |
Durable goods |
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One alternative to the market economy's method of making decisions about production is why we may call |
Traditional economic system |
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Which is also called the planned or directed economy. This economic structure is ruled by some type of centralized government |
Command economy |
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Which is also called the planned or directed economy. This economic structure is ruled by some type of centralized government |
Command economy |
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Shadowy underground systems |
Black market |
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That part of an economy that is controlled by private individuals, businesses, and organizations |
Private sector |
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That part of an economy that is controlled by private individuals, businesses, and organizations |
Private sector |
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Which is controlled by national, state, and local governments |
Public sector |
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That part of an economy that is controlled by private individuals, businesses, and organizations |
Private sector |
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Which is controlled by national, state, and local governments |
Public sector |
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The diminishing of the value of goods that is caused by wear and time |
Depreciation |
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That part of an economy that is controlled by private individuals, businesses, and organizations |
Private sector |
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Which is controlled by national, state, and local governments |
Public sector |
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The diminishing of the value of goods that is caused by wear and time |
Depreciation |
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The excess of the total revenue paid by buyers for goods over the sellers total expend of producing those goods. |
Profit |
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That part of an economy that is controlled by private individuals, businesses, and organizations |
Private sector |
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Which is controlled by national, state, and local governments |
Public sector |
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The diminishing of the value of goods that is caused by wear and time |
Depreciation |
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The excess of the total revenue paid by buyers for goods over the sellers total expend of producing those goods. |
Profit |
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The value of the best alternative that is foregone when a different alternative is taken |
Opportunity cost |
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Desire to work to improve ones economic situation |
Profit motive |
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On the surface of the oceans floor trillions of tiny plants and animals called |
Plankton |
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Competition |
Makes possible a better standard of living for everyone in a prosperous society |
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Groups of firms that produce similar products or provide similar service |
Industries |
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Groups of firms that produce similar products or provide similar service |
Industries |
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The purest of competition |
Perfect competition |
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Each firm in the market is known as |
Price taker |
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As the situation that arises when a single firm is the only supplier of a good for which no substitute exists |
Monopoly |
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Which economists call a form is imperfect competition, there is no competition at all |
Monopoly |
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When occurs when a single firm can fill the demand for a good more efficiently than if there were multiple firms in the industry |
Natural monopoly |
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The market is one in which each firm promotes a different product |
Monopolistic competition |
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A market occurs when an industry is dominated by only a few firms |
Oligopoly |
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When firms get together |
Collision |
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When firms get together |
Collision |
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One of the first and most important antitrust law is .. |
Sherman act |
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Collusion of businesses which join together to restrict or eliminate competition |
Trust |
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Which force the consumer to buy a certain product before he can buy the product he really wants |
Trying contracts |
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Which force the consumer to buy a certain product before he can buy the product he really wants |
Trying contracts |
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Selling the same type of good at different prices to different buyers, a practice known as |
Practice discrimination |
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Which is governmental agency whose purpose is to investigate trade practices |
Federal trade commission (FTC) |
