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;
32 Cards in this Set
- Front
- Back
scarcity
|
limited resources relative to wants and needs
|
|
resources
|
land, labor, machinery, and other inputs used to produce goods and services
|
|
opportunity cost
|
the best alternative forgone to produce or consume something else; what you five up to get something else.
|
|
unemployment
|
a situation in which resources are not fully used in production
|
|
consumer goods
|
goods that are consumed by consumers
|
|
capital goods
|
goods such as machinery and factories, which are used to produce other goods
|
|
private goods
|
goods provided by business firms
|
|
public goods
|
goods provided by the government
|
|
demand schedule
|
a table showing the quantities that consumers are willing to buy at alternative prices during a specified time period
|
|
law of supply
|
the is a direct (positive) relationship between price and quantity supplied
|
|
supply schedule
|
a table showing the quantities that suppliers are willing to sell at alternative prices during a specified time period
|
|
supply curve
|
a graph showing the quantities that suppliers are willing to sell at alternative prices during a specified time period
|
|
equilibrium
|
a state of balance; a point at which quantity demanded equals quantity supplied
|
|
surplus
|
a situation in which quantity supplied is greater than quantity demanded
|
|
equitable
|
fair
|
|
spillovers
|
costs of benefits of private market activity shifted onto society at large
|
|
market power
|
the ability to influence the market price of a product
|
|
Consumer price index (CPI)
|
a measure of the average price level
|
|
microeconomics
|
the study of individual areas of activity within the total economy
|
|
gross domestic product (GDP)
|
total output of an economy
|
|
private
|
individual people and businesses
|
|
public
|
government
|
|
demand curve
|
a graph showing the quantities that consumers are willing to buy at alternative prices during a specified time period
|
|
economic growth
|
a sustained increase in production, represented by an forward shift of the production possibilities curve.
|
|
efficient
|
using resources in such a way as to maximize the output from them
|
|
inflation
|
a rise in the average price level in the economy
|
|
law of demand
|
there is an inverse (negative) relationship between price and quantity demanded
|
|
macroeconomics
|
the study of the total economy
|
|
pure competition
|
a market in which many independent producers compete to sella standardized product to many independent buyers
|
|
production possibilities curve
|
an economic concept explaining scarcity and the need for choices; a graph showing alternate combinations of the maximum amounts of two different goods that can be produced during a particular time period if the economy's resources are efficiently and fully employed
|
|
services
|
activities (such as hair cuts, health care, and education) that are consumed (used) by consumers
|
|
shortage
|
a situation in which quantity demanded is greater than quantity supplied
|