Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
63 Cards in this Set
- Front
- Back
|
Market
|
A place or service that enables buyers and sellers to exchange goods and services.
|
|
|
Barter
|
The direct exchange of goods and services without the use of money.
|
|
|
Double Coincidence of wants
|
The situation that exists when A has what B wants and B has what A wants.
|
|
|
Relative Price
|
The price of one good expressed in terms of price of another good.
|
|
|
Demand
|
The amount of a product that people are willing and able to purchase at each possible price during a given period of time, ceteris paribus
|
|
|
Quanaity Demanded
|
The amount of a paroduct that people are willing and able to purchase at a specific price.
|
|
|
Law of Demand
|
The amount of a good or service the people are willing to purchase decreases as the price goes up, ceteris paribus.
|
|
|
Income Effect
|
The effect of a change in price on quantity demanded due to a change in income
|
|
|
Substitution Effect
|
The effect of a change in price on quantity demanded due to consumers switching from one good to another.
|
|
|
Determinants of Demand
|
Factors other than price that influence demand--income, tastes, price of related goods, expectations, numbers of buyers.
|
|
|
Demand Schedule
|
A table of list of the prices and the corresponding quantities demanded of a particular good or service.
|
|
|
Demand Curve
|
A graph of a demand schedule that measures price on the vertical axiz and quanity demadned on the horizontle axis.
|
|
|
Normal Good
|
Goods for which demand increases as income increases.
|
|
|
Inferior Good
|
Goods for which demand decreases as income increases
|
|
|
Substitute Good
|
Goods that can be used in place of each other.
|
|
|
Complementary Goods
|
Goods that are used together.
|
|
|
Veblen Good
|
A good with a positively sloped demand curve. As price increases people buy more of these goods to demonstrate their social status.
|
|
|
Giffen Good
|
A good with a positively sloped demand curve. This must be an inferior good for which the income effect outweight the substitution effect
|
|
|
Supply
|
The amount of a good or service that producers are willing to offer for sale at each possible price during a period of time, ceteris paribus.
|
|
|
Quantity Supplied
|
The amount sellers are willing and able to offer at a given price, ceteris paribus.
|
|
|
Law of Supply
|
The quantity of a good or service that producers are wiling to offer for sale increases as the price of it increases.
|
|
|
Determinants of Supply
|
Factors other than price of the good that influence supply--prices of resources, technology, prodctivity, number of producers, expectations of producers and prices of related goods/services.
|
|
|
Supply Schedule
|
A table of prices and correstponding quantities supplied of a particular good/service.
|
|
|
Supply Curve
|
A graph of a supply schedule, with price on the vertical axis and quantity demanded on the horizontal axis.
|
|
|
Productivity
|
The quatity of output produced per unit input.
|
|
|
Market
|
A place or service that enables buyers and sellers to exchange goods and services.
|
|
|
Barter
|
The direct exchange of goods and services without the use of money.
|
|
|
Double Coincidence of wants
|
The situation that exists when A has what B wants and B has what A wants.
|
|
|
Relative Price
|
The price of one good expressed in terms of price of another good.
|
|
|
Demand
|
The amount of a product that people are willing and able to purchase at each possible price during a given period of time, ceteris paribus
|
|
|
Quanaity Demanded
|
The amount of a paroduct that people are willing and able to purchase at a specific price.
|
|
|
Law of Demand
|
The amount of a good or service the people are willing to purchase decreases as the price goes up, ceteris paribus.
|
|
|
Income Effect
|
The effect of a change in price on quantity demanded due to a change in income
|
|
|
Substitution Effect
|
The effect of a change in price on quantity demanded due to consumers switching from one good to another.
|
|
|
Determinants of Demand
|
Factors other than price that influence demand--income, tastes, price of related goods, expectations, numbers of buyers.
|
|
|
Demand Schedule
|
A table of list of the prices and the corresponding quantities demanded of a particular good or service.
|
|
|
Demand Curve
|
A graph of a demand schedule that measures price on the vertical axiz and quanity demadned on the horizontle axis.
|
|
|
Normal Good
|
Goods for which demand increases as income increases.
|
|
|
Inferior Good
|
Goods for which demand decreases as income increases
|
|
|
Substitute Good
|
Goods that can be used in place of each other.
|
|
|
Complementary Goods
|
Goods that are used together.
|
|
|
Veblen Good
|
A good with a positively sloped demand curve. As price increases people buy more of these goods to demonstrate their social status.
|
|
|
Giffen Good
|
A good with a positively sloped demand curve. This must be an inferior good for which the income effect outweight the substitution effect
|
|
|
Supply
|
The amount of a good or service that producers are willing to offer for sale at each possible price during a period of time, ceteris paribus.
|
|
|
Quantity Supplied
|
The amount sellers are willing and able to offer at a given price, ceteris paribus.
|
|
|
Law of Supply
|
The quantity of a good or service that producers are wiling to offer for sale increases as the price of it increases.
|
|
|
Determinants of Supply
|
Factors other than price of the good that influence supply--prices of resources, technology, prodctivity, number of producers, expectations of producers and prices of related goods/services.
|
|
|
Supply Schedule
|
A table of prices and correstponding quantities supplied of a particular good/service.
|
|
|
Supply Curve
|
A graph of a supply schedule, with price on the vertical axis and quantity demanded on the horizontal axis.
|
|
|
Productivity
|
The quatity of output produced per unit input.
|
|
|
Equilibrium
|
The quantity and price at which quantity supplied and demanded are equal. Also known as the market clearing price
|
|
|
Disequilibrium
|
A point at which quantity supplied and quanitity demanded are not equal.
|
|
|
Surplus
|
Quantity supplied is larger than quantity demanded.
|
|
|
Shortage
|
When quantity supplied is smaller than quantity demanded.
|
|
|
Price Floor
|
A situation in which price is not allowed to decrease below a certain level.
|
|
|
Price Ceiling
|
A situation in which price is not allowed to rise above a certain level.
|
|
|
Consumer Surplus
|
What the buyer is willing to pay minus what she actually pays.
|
|
|
Producer Surplus
|
The amount a seller is paid for a good minus a seller's cost.
|
|
|
Efficiency
|
Resource allocation which maximizes total surplus to all parties involved.
|
|
|
Allocative Efficiency
|
When the socially optimal quantity of a good is produced. This is the point at which social benefit = social cost and surplus (consumer and producer) is maximized.
|
|
|
Equity
|
The fairness of the distribution amoung the members of society.
|
|
|
Buffer Stock
|
A stockpile of goods (generally primary products) maintained to prevent radical price fluctuations--when prices are low the buffer stock is built up (to reduce supply) and when prices are high the buffer stuck Is run down (to increase supply)
|
|
|
Commodity Agreement
|
When a group of primary producers agree to reduce supply in order to keep the price of a good high.
|
