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
chapter3,4,5
| Term | Definition |
|---|---|
| demand | the amount of a good or service that consumers are willing and able to buy at various prices during a given period |
| law of demand | the principal that all factors being equal consumers will purchase (demand) more of a good at lower prices and less of a good at higher prices |
| purchasing power | amount of income that people have available to spend on goods and servies |
| income effect | effect that a change in items price has on consumers ability to purchase goods |
| substitution effect | consumers tendency to substitute a lower price good for a similar higher price one |
| diminishing marginal utility | the natural decreases in the utility of a good or service as more units of it are consumed |
| demand schedule | a table that shows the level of demand for a particular item at various prices |
| demand curve | a graphic representation of a demand schedule, showing the relationship between the price of an item and the quantity demand during a given period, with all other things being equal |
| determinants of demand | a non price factor that influences the amount of demand for a good or service |
| substitute goods | a part that purchasers use in place for another product particularly if the price of the other product rises |
| complementary goods | a good that is commonly used with another good and for which demand increases (or decreases) when the demand for the related good increases (or decreases) |
| elastisticy of demand | the degree to which changes in price of a good or a service affect quantity demanded |
| law of supply | the prinicipal that produces will supply more of a produce or service at high 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 manufactor of a product |
| supply curve | a graphic representation of a supply schedule, showing the relationship between the price of an item and the quantity suppied given the time period, with all other things being equal |
| determinate of supply | a non price factor that influences the amount of demand for a good or service |
| tax | a required payment to a local, state, or national goverment, usually made on some regular basis |
| law of diminishing returns | the prinicpal that as more of one input (such as labor) is added to a fixed supply of other resourses (such as capital), productivity will increase up to a point, after which the marginal product will diminish |
| overhead | the sum of a businesses fixed costs except for wages and the material costs |
| variable costs | a cost of doing business that changes directly with a change in level of output, typically rising and dropping as production increases and decreases |
| marginal costs | the cost or producing one addition unit of output |
| market failure | a flaw in a price system that occurs when someone costs have not been accounted for and thereofre are not properly distributed |
| externality | and effect that an economic activity has on people and businesses that are neither producers nor consumers of the good or service being produced. and an externalily may be postitive(benefitial) or negative (harmful) |
| public good | any good or service that is consumed by all members of a good, reguardless of who has helped pay for it |
| market equalibrium | the point at which the quantity supply and quantity demanded 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 whic the quantity demanded of a good or resource exceeds the quantity supplied |
| price ceiling | a government regulation that sets the maximum price for a particular good |
| price floor | a goverment regualtion that sets the minium price for a particular good |
| minimum wage | the lowest hourly wage rate that an employer can legally pay a worker, as established by a federal law |
| rationing | a system by which a government or other institution decides how to distriute a good or service; rationing isusally the result of limited supply |
Created by:
marisaraquell
Popular Economics sets