Economics ch 4

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