Econ Final Exam Chapters 1-6

Front 1

the most desirable alternative given up as a result of a decision

Back 1

opportunity cost

Front 2

limited quantities of resourves to meet unlimited wants

Back 2

scarcity

Front 3

a graph that show alternative ways to use an economy's resources

Back 3

productions possibilites curve

Front 4

using fewer resources than an economy is capable of using

Back 4

underutilization

Front 5

actions or activities that one person performs for another

Back 5

services

Front 6

physical objects such as clothes or shoes

Back 6

goods

Front 7

the effort that people devote to a task for which they are paid

Back 7

labor

Front 8

using resources in such a way as to maximize the production of goods and services

Back 8

efficiency

Front 9

the three goods and services that are used to make goods and services

Back 9

factors of production

Front 10

a situation in which a good or service is unavailable

Back 10

shortage

Front 11

the line on a production possibilities graph that shows the maximum possible output

Back 11

production possibilities frontier

Front 12

limited quantities of resources to meet unlimited wants

Back 12

scarcity

Front 13

the total value of all final goods and services produced in a particular economy

Back 13

gross domestic product (GDP)

Front 14

the concerns of the public as a whole

Back 14

public interest

Front 15

requires companies to provide full information about their products

Back 15

public disclosure laws

Front 16

someone who would not choose to pay for a certain good or service but would get the benefits if it were provided as a public good

Back 16

free rider

Front 17

goods and services produced for free or at greatly reduced prices

Back 17

in-kind benefits

Front 18

the part of the economy that involves the transactions of individuals and businesses

Back 18

private sector

Front 19

an income level below which income is insufficient to support families or households

Back 19

poverty threshold

Front 20

the study of the behavior and decision making of entire economics

Back 20

macroeconomics

Front 21

a graphic representation of a demand schedule

Back 21

demand curve

Front 22

goods that are used in place of one another

Back 22

substitutes

Front 23

consumers buy more of a good when its price decreases and less when its price increases

Back 23

law of demand

Front 24

a measure of how consumers react to a change in price

Back 24

elasticity of demand

Front 25

when consumers react to an increase in a good's price by consuming less of that good and more of other goods

Back 25

substitution effect

Front 26

the total amount of money a firm receives by selling goods or services

Back 26

total revenue

Front 27

two goods that are bought and used together

Back 27

compliments

Front 28

a good that consumers demand more of when their income increases

Back 28

normal good

Front 29

a graph of the quantity supplied of a good by all suppliers

Back 29

market supply curve

Front 30

the amount a supplier is willing and able to supply at a certain price

Back 30

quantity supplied

Front 31

fixed costs plus variable costs

Back 31

total cost

Front 32

a factor that can change

Back 32

variable

Front 33

government intervention in a market that affects the production of a good

Back 33

regulation

Front 34

a level of production in which the marginal product of labor increases as the number of workers increase

Back 34

increasing marginal return

Front 35

the additional income from selling one more unit of a good; sometimes equal to price

Back 35

marginal revenue

Front 36

a chart that lists how much of a good a supplier will offer at different prices

Back 36

supply schedule

Front 37

the change in output from hiring one additional unit of labor

Back 37

marginal product of labor

Front 38

when quantity supplied is not equal to quantity demanded in a market

Back 38

disequilibrium

Front 39

the financial and opportunity costs consumers pay when searching for a good or service

Back 39

search costs

Front 40

a price ceiling placed on rent

Back 40

rent control

Front 41

a situation in which the quantity demanded is greater than the quantity supplied, also known as excess demand

Back 41

shortage

Front 42

a situation in which quantity supplied is greater than quantity demanded, also known as excess supply

Back 42

surplus

Front 43

any factor that makes it difficult for a new firm to enter a market

Back 43

barrier to entry

Front 44

making a product different from other similar products

Back 44

differentiation

Front 45

the right to sell a good or service within an exclusive market

Back 45

franchise

Front 46

an illegal grouping of companies that discourages competition

Back 46

trust

Front 47

factors that cause a producer's average cost per unit to fall as output rises

Back 47

economies of scale

Front 48

a series of competitive price cuts that lowers the market price below the cost of production

Back 48

price war

Front 49

a market structure in which a large number of firms all produce the same product

Back 49

perfect competition

Front 50

a market structure in which a few large firms dominate a market

Back 50

oligopoly