Econ-201

  1. a visual model of the economy that shows how dollars flow through markets among households and firms
    circular-flow diagram
  2. a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology
    production possibilities frontier
  3. the study of how households and firms make decisions and how they interact in markets
    microeconomics
  4. the study of economy-wide phenomena, including inflation, unemployment, and economic growth
    macroeconomics
  5. claims that attempt to describe the world as it is
    positive statements
  6. claims that attempt to prescribe how the world should be
    normative statements
  7. the ability to produce a good using fewer inputs than another producer
    absolute advantage
  8. whatever must be given up to obtain some item
    opportunity cost
  9. the ability to produce a good at a lower opportunity cost than another producer
    comparative advantage
  10. produced abroad and sold domestically
    imports goods
  11. produced domestically and sold abroad
    exports goods
  12. a group of buyers and sellers of a particular good or service
    market
  13. a market in which there are many buyers and many sellers so that each has a negligible impact on the market price
    competitive market
  14. the amount of a good that buyers are willing and able to purchase
    quantity demanded
  15. the claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises
    law of demand
  16. a table that shows the relationship between the price of a good and the quantity demanded
    demand schedule
  17. a good for which, other things being equal, an increase in income leads to an increase in demand
    normal good
  18. a good for which, other things being equal, an increase in income leads to a decrease in demand
    inferior good
  19. two goods for which an increase in the price of one leads to an increase in the demand for the other
    substitutes
  20. two goods for which an increase in the price of one leads to a decrease in the demand for the other
    complements
  21. the amount of a good that sellers are willing and able to sell
    quantity supplied
  22. the claim that, other things being equal, the quantity supplied of a good rises when the price of the good rises
    law of supply
  23. a table that shows the relationship between the price of a good and the quantity supplied
    supply schedule
  24. a graph of the relationship between the price of a good and the quantity supplied
    supply curve
  25. a situation in which the market price has reached the level at which quantity supplied equals quantity demanded
    equilibrium
  26. the price that balances quantity supplied and quantity demanded
    equilibrium price
  27. the quantity supplied and the quantity demanded at the equilibrium price
    equilibrium quantity
  28. a situation in which quantity supplied is greater than quantity demanded
    surplus
  29. a situation in which quantity demanded is greater than quantity supplied
    shortage
  30. the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance
    law of supply and demand
Author
Anonymous
ID
334671
Card Set
Econ-201
Description
ECON 201
Updated