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18 Cards in this Set
- Front
- Back
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Demand
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The quantity of a particular good that people are willing to buy; heavily dependent on price.
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Substitutes
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Products that serve similar purposes.
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Supply
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The quantity of a particular good businesses are willing to produce or sell.
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Complements
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Products that are usually consumed jointly.
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Law of Diminishing Marginal Utility
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As the rate of consumption increases, the marginal utility derived from consuming additional units of a good will decline.
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Price Elasticity
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The quantity demanded of a good in response to changes in that good's price; a good is elastic when its quantity demanded responds greatly to price changes (luxuries) and inelastic when its quantity demanded responds little to price changes (necessities)
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Business Cycles
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Swings in total national output, income, and employment marked by widespread expansion or contraction in many sectors of the economy.
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Recession
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A decline in real gross domestic product for two or more successive quarters.
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Inflation
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An increase in the price level of goods and services.
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Consumption Movements
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Economic variables that fluctuate during the business cycle; describe changes in consumer economy.
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Gross National Product
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A price index that measures the cost of a market basket of consumer goods and services purchased for day-to-day living.
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Consumer Price Index
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A price index that measures the cost of a market basket of consumer goods and services purchased for day-to-day living.
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Price Index
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A weighted average of the prices of numerous goods and services.
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Federal Reserve
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The banking and financial system developed under the Federal Reserve Act of 1913 that makes the basic policy decisions that regulate the country's money and banking systems.
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Fiscal Policy
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Taxation, expenditures, and debt management of the federal government.
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Tort
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A private wrong; an infringement on the rights of another.
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Negligence
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The failure to act in a way that a reasonably prudent person would have acted under the circumstances.
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Federal Trade Commission (FTC)
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The federal organization created in 1914 to keep competition free and fair and to protect US consumers.
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