Terms

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Oligopoly

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A market structure in which a few, relatively large firms account for all or most of the production or sales of a good or service in a particular market, and where barriers to new firms entering the market are very high. Some oligopolies produce homogeneous products; others produce heterogeneous products.

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Opportunity Cost

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The forgone benefit of the next best alternative that must be given up when scarce resources are used for one purpose instead of another.

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Proverty

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The state of being poor, variously defined. Sometimes defined relatively — by reference, for example, to the average household income in a nation or region. Sometimes defined absolutely — by reference, for example, to the income needed to provide for adequate food, housing, and clothing in a nation or region.

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Price

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The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or service.

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Price Elasticity Of demand

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The responsiveness of the quantity demanded of a good or service to changes in its price. The price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price.

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Price elasticyti Of Supply

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The responsiveness of the quantity supplied of a good or service to changes in its price. The price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price.

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Producers

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People and firms that use resources to make goods and services.

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profit

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Income received for entrepreneurial skills and risk taking, calculated by subtracting all of a firm’s explicit and implicit costs from its total revenues

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property rights

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Legal protection for the boundaries and possession of property. Assigning of property rights to individuals, collectives, or governments will depend on the economic system.

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public goods

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oods for which use by one person does not reduce the quantity of the good available for others to use, and for which consumption can not be limited to those who pay for the good.

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public choice analizyz

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The study of decision making as it affects the organization and operation of government and other collective organizations. Involves the application of economic principles to political science topics

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purchasin gpower

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The amount of goods and services that a monetary unit of income can buy.

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quotas

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In international trade, limits on the quantity of a product that may be imported or exported, established by government laws or regulations; in command economies, more typically a production target assigned by government planning agencies to the producers of a good or service.

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resources

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The three (or four) basic kinds of resources used to produce goods and services: land or natural resources, human resources (including labor and entrepreneurship), and capital.

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recession

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A decline in the rate of national economic activity, usually measured by a decline in real GDP for at least two consecutive quarters (i.e., six months).