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17 Cards in this Set

  • Front
  • Back
criteria
the specific things we want in a good or service
alternative
the choices you have
opportunity cost
our next best alternative; what you gave up to get what you really wanted
constraint
an absolute restriction
trade-off
when you give up one of your criteria to get what you want
law of demand
as price goes up, demand goes down; as price goes down, demand goes up
demand
a set of possible prices at which consumers are willing and able to purchase a product
quantity demanded
the amount consumers will purchase at a given price
supply
a set of prices at which producers are willing and able to see their goods/services
law of supply
as price goes up, quantity supply goes up, as price goes down, quantity supply goes down
market
a place where producers and consumers come together to exchange goods and services
surplus
when quantity supplied is greater than quantity demanded
shortage
when quantity demanded is greater than quantity supplied
craftsperson
one person who performs all aspects of the production of a good
specialist
a person who performs one aspect of the production of a good
profit
the money left over after the cost of production and resources have been paid for
productivity
number of units produced (output) divided by number of people producing a good (inputs)