AMPP Chapter 1_Vocab

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  1. Microeconomics
    - Deals with the behavior workers, investors, owners of land, business firms. 

    - How economic units interact to form larger units- markets and industries
  2. Positivie Analysis
    Analysis describing relationships of cause and effect
  3. Normative Analysis
    Analysis examining questions of what ought to be
  4. Market
    Collection of buyers and sellers that, through their actual or potential interactions, determine the price of a product or set of products.
  5. Arbitrage
    Practice of buying at a low price at one location and selling at a higher price in another. 

    e.g. Gold
  6. Perfectly competitive Market
    Marekt with many buyers and sellers, so that no single buyer or seller has a significant impact on price.
  7. Market Price
    Price prevailing in a competitive market
  8. Extent of a Market
    Boundaries of a market, both geographical and in terms of range of products produced and sold within it.
  9. Nominal Price
    - Absolute price of a good, unadjusted for inflation. 

    - Current Dollar
  10. Real Price
    - Price of a good relative to an aggregate measure of prices; Price adjusted for infaltion

    - Constant Dollar
  11. Consumer Price Index
    - Measure of the aggregate price level.

    - Percentage changes in the CPI measure the rate of infaltion in the economy
Card Set
AMPP Chapter 1_Vocab
For KDI School
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