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Economics ch 4
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the relationship between a good's price and the amount that people are willing to buy
demand
the relationship between a good's price and the amount that producers are willing to provide for consumers
supply
value that is directly related to the benefits their owners receive through their use
value in use
what a particular good is worth in exchange for some other good
value in exchange
the amount of money that a buyer pays the seller for a particular item
price
prices at which goods can be sold in an open market with many potential sellers and buyers
market prices
as one's supply of a specific good or service increases, the satisfaction derived from each additional unit tends to decrease
diminishing marginal utility
the amount of satisfaction that results from a one unit increase of a product
marginal utility
the total amount of satisfaction received from possessing a particular amount of a good
total utility
what effect says that when the price of goods rises, it affects a consumer as if his income were reduced
income effect
a list of numbers that compare quantity demanded with price
demand schedule
"Other things remaining equal, as the price of a good increases, the quantity demanded decreases in a free market economy"
law of demand
other things remaining equal, as the price of a good increases, the quantity supplied also increases in a free market economy
law of supply
a list of numbers that compares price with quantity supplied
supply schedule
a graphic representation of the quantity of goods supplied at different prices
supply curve
the situation in which the quantity demanded exceeds the quantity supplied at a given price
shortage
the quantity supplied of a good is greater than the quantity demanded at a given price
surplus
the point at which quantity demanded and quantity supplied are equal
equilibrium
when government place a limit on how high a producer may charge for his product
price ceiling
price levels set above the equilibrium prices
price floors
when governments try to encourage production by giving money
subsidies
the reason that a person is willing to trade certain goods
profit motive
the diminishing of the value of goods that is caused by wear and time
depreciation
the excess of the total revenue paid by buyers for goods over the seller's total expense of producing those goods
profit
the value of the best alternative that is foregone when a different alternative is taken
opportunity cost
what it would cost people who run their own establishments to hire managers to run the businesses for them
wage of management
the total value of a business minus any liabilities
equity
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Author
Rayna
ID
344701
Card Set
Economics ch 4
Description
A Beka 12th grade economics
Updated
2019-02-01T00:48:11Z
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