Microeconomics

The social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity.

The amount of other products that must be foregone or sacrificed to produce a unit of a product

The want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains from the consumption of a good or service

A collection of specific economic units treated as if they were one unit.

ex the prices of all individual goods and services are combined into the price level, and all units of output are aggregated into gross domestic product.

The analysis of facts or data to establish scientific generalizations about economic behavior

The part of economics involving value judgments about what the economy should be like; focused on which economic goals and policies should be implemented; policy economics

The choices necessitated because society's economic wants for goods and services are unlimited but the resources available to satisfy these wants re limited.

A line that shows the different combinations of two products a consumer can purchase with a specific money income, given the product's price.

Factors of production

When demand is ____, price and total revenue move in the opposite direction.

When demand is _____, price and total revenue more in the same direction.

Since price and quantity move in the same direction an increase in price will result in an ____ in total revenue.

Relates the percentage change in quantity to the percentage change in price of a different good.

If cross elasticity is positive this implies that an increase in the price of one good results in....

Implies that demand is elastic when revenue and price move in opposite directions

Occurs when some of the costs or the benefits of a good or service are passed onto someone else other than the immediate buyer or seller.

Failures that happen because producers do not take into account the costs that their ____ impose on others.

Failures that happen because market demand curves in such cases fail to include the willingness to pay of the third parties who receive the external benefits caused by the...

Government direct controls to control negative externalities

Gvot direct controls to control positive externalities

The difference between the maximum price a consumer is willing to pay for an additional unit of a product and its market price; the triangular area below the demand curve and above the market price

The difference between the actual price a producer receives and the minimum acceptable price; the triangular area above the supply curve and below the market price

The characteristic of a private good for which sellers can keep non-buyers from obtaining the good.

The characteristic of a private good, the consumption of which by one party excludes other parties from obtaining the benefit

Market demand schedule based on a private good is made by

Collective demand schedule based on a public good is made by

A situation in which a person or country can produce a specific product at a lower opportunity cost than some other person or country; the basis for specialization and trade

The rate at which units of one product can be exchanged for units of another product;

The sale of a product in a foreign country at prices either below cost or below the prices commonly charged at home.

The practice of shifting work previously done by domestic workers to workers located abroad.