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EconFinal2015
| Term | Definition |
|---|---|
| Opportunity Cost | What is given up when a choice is made, the highest valued alternative forgone. |
| Price | The amount of money exchanged for a good or service, interaction of supply and demand determines this, and this determines who acquires goods and services. |
| Incentives | These are things that motivate people to change their economic behavior. |
| Demand | The amount of a good or service that consumers are willing and able to buy at a certain price. |
| Supply | The amount of a good or service that producers are willing and able to sell at a certain price. |
| Natural | A type of resource that is found in or on the soil, water, or air. |
| Capital | A type of resource that is machinery and money, previously made items that are used to make something else. |
| Human | A type of resource that represents peoples labor. |
| Entrepreneurship | A type of resource that the owner and manager of a company provides. |
| Production | The combining of the four types of resources to MAKE a good or service. |
| Consumption | The use of goods and services |
| Scarcity | The inability to satisfy all wants at the same time because resources and goods are limited. |
| Traditional | Type of economic system are decisions based on custom and history with people performing the same type of work as their parents regardless of ability or potential. |
| Free Market | Type of economic system is there private ownership of property and resources, competition, profit, consumer sovereignty, individual choice, and minimal government involvement |
| Command | Type of economic system is there central ownership and planning of the economy by the government with little consumer choice. |
| Profit | Consists of earnings after all expenses have been paid. |
| Competition | The rivalry between producers and/or sellers of a good or service . |
| Surplus | The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific price. |
| Aggregate demand | The sum of all expenditures for goods and services. |
| Aggregate supply | The nation's total output of goods and services. |
| Keynesian economics | Believes the private economy is inherently unstable and government intervention is necessary. Aggregate demand is our economy's prime mover. |
| Equilibrium | aggregate demand=aggregate supply |
| Bond | Contract to repay borrowed money with interest at a specific time in the future. |
| Capitalism | A system in which private citizens own most, if not all, of the means of production and decide how to use them within legislated limits. |
| Credit | Money borrowed to pay for a good or service. |
| Dividend | Payment of a portion of a company's earnings. |
| Economics | The study of how individuals and nations make choices about ways to use scarce resources to fulfill their needs and wants. |
| Gross Domestic Product (GDP) | Total dollar value of all final goods and services produced in a country during a single year. |
| Interest | The payment people receive when they lend money or allow someone else to use their money. |
| Market | Meeting place or mechanism for buyers and sellers to come together; may be local, regional, national, or global. |
| Macroeconomics | Economic behavior and decision-making by government or whole industries or societies. |
| Microeconomics | Economic behavior and decision-making by individuals and small businesses. |
| Stock | Ownership share of a corporation's equity. |
| Utility | The amount of satisfaction one gets from a good or service. |
| Good | A tangible economic product that is useful, transferable, and satisfies wants and needs. |
| Wealth | The sum of tangible economic goods that are scarce, useful, and transferable |
| Per capita GDP | GDP divided by the total population. |
| Real GDP | GDP after it has been adjusted for inflation. |
| Nominal GDP | GDP, measured in current prices, that has NOT been adjusted for inflation. |
| Need | Something that is necessary for survival. |
| Want | Goods and services that we desire but are not necessary to our survival. |
| Shortage | When quantity supplied is less than quantity demanded. |
| Money | Anything that serves as a medium of exchange, a unit of account, and a store of value. |
| Business cycle | The ups and downs in the overall economy. |
| Depression | A very deep and prolonged downturn. |
| Recession | A periods of economic downturn when output and employment are falling. |
| Unemployment | # of people who are actively looking for work, but don't have one. |
| Labor force | Sum of employment and unemployment. |
| Inflation | Rise in overall price level. |
| Law of Demand | As price rises, people will demand a smaller quantity of goods and services. |
| Law of Supply | Price and quantity supplied of a good are positively related. |
| Sunk cost | Past costs that have already been incurred and cannot be recovered. |
| Game Theory | Competition stated in terms of gains and losses among opposing players. |
Created by:
ssteuter
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