Econ203

It is the limited nature of resources

The study of how society manages it's scarce resources

It is the property of society getting the most it can from it's scarce resources

it is the property of distributing economic prosperity uniformly among the members of society

people who systematically and purposefully do the best they can to acheive their objectives

Small incremental adjustments to a plan of action

something that induces a person to act

an economy that allocates resources throught the decentralized descisions of many firms and households as they interact in markets for goods and services

the ability of an individual to own and exercise control over scarce resources

a situation in which a market left on its own fails to allocate resources efficiently

action takes place that cause spill-over effect on non-consenting 3rd parties

the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices

the quanitity of goods and services produced from each unit of labor input

an increase in the overall level of prices in the economy

inflation rising at a rapid rate

fluctuations in economic activity, such as employment and production

A visual model of the economy that shows how dollars flow through makerts among households and firms

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

the study of how households and firm make decisions and how they interact in markets

the study of economy wide phenomena, including inflation, unemployment, and economic growth

claims that attempt to describe the world as it is

Claims that attempt to prescribe how the world should be

the ability to produce a good using fewer inputs than another producer

whatever must be given up to obtain some item

the ability to produce a good at lower opportunity cost than another producer

goods produced abroad and sold domestically

goods produced domestically and sold abroad

a group of buyers and sellers of a particular good or service

a market in which there are many buyers and many sellers so that each has a negligible impact on the market

the amount of a good that buyers are willing and able to purchase

claim that other things equal, when the price of a good rises, the quanitity demanded of the good falls, and when prices fall, the quanitity demanded rises

increase of price of product>decrease quantity demanded>vice versa

a table that show the relationship b/w the price of a good and quantity demanded

a graph of the relationship b/w price of a good and the quantity demanded

if the demand of the good falls when income falls

if demand for good rises when income falls

two goods for which an increase in the price of one leads to an increase in the demand for the other

two goods for which an increase in price of one leads to a decrease in the demand for the other

the amount of a good that sellers are willing and able to sell

claim that, other things equal, the quanitity supplied of a good rises when the price of the good rises

a table that shows the relationship b/w the price of a good and the quantity supplied, holding constant everything else that influences how much producers of the good want to sell

curve relating price and quantity supplied

situation at which market price has reached quantity supplied equals quantity demanded

the price that balances quantity supplied and quantity demanded

the quantity supplied and the quantity demanded at the equilibrium price

a situation in which quantity supplied is greater than quantity demanded

a situation in which quantity demanded is greater than quantity supplied

claim that the price of any good adjusts to bring the quantity supplied and quantity demanded for that good into balance

a measure of the responsiveness of quantity demanded or quantity supplied to one of it's determiants

a measure of how much quantity demanded of a good responds to a change in price of that good, computed as the % change in quantity demanded divided by the % change in price

the amount paid by buyers and recieved by sellers of the good.

• 1) prices of related products
• A)Substitute: decrease in price Canada Dry>demand decrease for B gingergale
• B)Complement: increase....
• 2)Taste and Preferences-seasonal
• increase D if advertising
• 3)Income
• A) increase in income, increase of DBGA-normal good
• B)increase income, decrease Demand of ramen noodles-inferior good
• 4)Expected future prices
• Price decrease, Demand decrease
• 5)# Buyers (consumers)
• increase Buyers, increase demand for products