Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Ch.3,4,5
Ch.3
| Elasticity of Demand | The degree to which price changes in the price of a good or service affect quantity demanded |
| Elastic Demand | the situation that exist when quantity demanded changes greatly in respond to a change in price |
| Inelastic Demand | the situation that exist when quantity demanded changes only sightly or not at all in respons to a change in price |
| Total Revenue | a businesses total income sometimes called total receipts |
| Law of Supply | the principle that producers will supply more of a product or service at higher prices but less of a product or service at lower prices |
| Profit Motive | the desire to make money |
| Cost of Production | the total cost of materials, labor, and other inputs required in the manufacture of a product |
| Supply Curve | a graphic representation of a supply schedule, showing the relationship between the price of an item and the quantity supplied during a given time period, with all other things being equal. |
| Determinant of Supply | a non-price factor that influences the available supply of a good or service |
| Tax | a required payment to a local, state, or national gov't usually made on some regular basis |
| Law of diminishing Returns | the principle that as more of one input ( such as labor) is added to a fixed supply of other resources( such as capital) productivity will increase up to a poingt after which the marginal product will diminish |
| Overhead | the sum of a businesses fixed cost except for wages and the material cost |
| Variable cost | a cost of doing business that changes directly with a change in the level of output, typically rising and dropping as production increases and decreases |
| Marginal cost | the cost of producing one additional unit of output |
| Market Failure | a flaw in a price system that occurs when some cost have not been accounted for and therefore are not properly distributed |
| Externality | an effect that an economic activity has on people and susinesses that are neither producers or consumers of the good or service being produced. May be either positve or negative |
| Public Good | any good or service that is consumed by all memebers of a group regardless of who has helped pay for it |
| Market equilibrium | the point at which the quantity supplied and the quantity demand for a product are equal at the same price |
| Surplus | a situation in which the quantity supplied of an item at a given price exceeds the quantity demanded |
| shortage | a situation in which the quantity demanded of a good or resource exeeds the quantity supplied |
| price ceiling | a gov't regualtion that sets a maximum price for a particular good |
| price floor | a gov't regulation that sets a minimum price for a particular good |
| minimum wage | the lowest hourly wage rate that an empoyer can legally can pay a worker, as established by federal law |
| rationing | a systme by wich a gov't or other institution decides how to distribute a good or a service, rationing is usually the result of limited supply |
Created by:
westsidesstory
Popular Economics sets