Ap Macro Ch.3 Vocab

Front 1

barter

Back 1

the exchange of one good or service for another good or service

Front 2

change in quantity demanded

Back 2

a change in the amount of a product that consumers are willing and able to purchase because of a change in the product's price

Front 3

change in quantity supplied

Back 3

a change in the amount of a product that producers are willing and able to produce because of a change in the product's price

Front 4

complementary goods

Back 4

products and services that are used together; when the price of one falls, the demand for the other good increases (and conversely)

Front 5

demand

Back 5

a schedule showing the amounts of a good or service that buyers (or a buyer) wish to purchase at various prices during some time period

Front 6

demand curve

Back 6

a curve illustrating demand

Front 7

demand schedule

Back 7

a table or list of prices and the corresponding quantities demanded for a particular good or service

Front 8

determinants of demand

Back 8

factors other than price that determine the quantities demanded of a good or service

Front 9

determinants of supply

Back 9

factors other than price that determine the quantities supplied of a good or service

Front 10

diminishing marginal utility

Back 10

the principle that as a consumer increases the consumption of a good or service, the marginal utility obtained from each additional unit of the good or service decreases

Front 11

disequilibrium

Back 11

prices at which quantity demanded and quantity supplied are not equal at a specific price

Front 12

double coincidence of wants

Back 12

the situation that exists when A has what B wants and B has what A wants

Front 13

equilibrium

Back 13

the price and quantity at which quantity demanded and quantity supplied are equal

Front 14

exchange rate

Back 14

the rate at which monies of different countries are exchanged

Front 15

income effect

Back 15

a change in the quantity demanded of a product that results from a change in real income caused by a change in the product's price

Front 16

inferior goods

Back 16

a good or service whose consumption declines as income rises, price held constant

Front 17

law of demand

Back 17

the principle that, other things equal, an increase in a product's price will reduce the quantity of it demanded, and conversely for a decrease in price

Front 18

law of supply

Back 18

the principle that, other things equal, an increase in the price of a product will increase the quantity of it supplied, and conversely for a price decrease

Front 19

market

Back 19

any institution or mechanism that beings together buyers and sellers of a particular good or service

Front 20

normal goods

Back 20

a good or service whose consumption increases when income increases and decreases when income decreases

Front 21

price ceiling

Back 21

a legally established price maximum for a good or service that is below the equilibrium price and quantity

Front 22

price floor

Back 22

a legally established price minimum for a good or service that is above the equilibrium price and quantity

Front 23

productivity

Back 23

a measure of average output or real output per unit of input

Front 24

quantity demanded

Back 24

the amount of a good or service that buyers desire to purchase at a particular price during some period

Front 25

quantity supplied

Back 25

the amount of a good or service that sellers desire to sell at some particular price during some period

Front 26

shortage

Back 26

the amount by which the quantity demanded of a product exceeds the quantity supplied at a particular (below equilibrium) price

Front 27

substitutes

Back 27

products or services that can be used in place of each other; when the price of one falls, the demand for the other falls; when the price of one rises, the demand for the other rises

Front 28

substitution effect

Back 28

a change in the quantity demanded of a consumer good that results from a change in its relative expensiveness caused by a change in the product's price

Front 29

supply

Back 29

a schedule showing the amounts of a good or service that sellers will offer at various prices during some period of time

Front 30

supply curve

Back 30

a curve illustrating supply

Front 31

supply schedule

Back 31

a table or list of prices and the corresponding quantities supplied of a particular good or service

Front 32

surplus

Back 32

the amount by which the quantity supplied of a product exceeds the quantity demanded at a specific (above equilibrium) price