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
Econ Terms
| Term | Definition |
|---|---|
| Demand | how many things people want to buy |
| Demand Schedule | like a list that shows how many of something people want to buy at different prices |
| Diminishing Marginal Returns | when you get less of a benefit from doing more of something |
| Elasticity of Demand | the degree in which demand responds to a change in an economic factor |
| Elasticity of Supply | the responsiveness to the supply of a good or service after a change in its market price |
| Equilibrium | when the amount of something that people want to buy is the same as the amount of something that people want to sell |
| Excess Demand | when people want to buy more of something than there is available |
| Factors of Production | the things that companies need to make a product four main factors - land, labor, capital, and entrepreneurship |
| Human Capital | the skills and knowledge that people have that make them good at doing something |
| Income Effect | refers to the changes in the consumption or purchasing power of an individual resulting from a change in their income. |
| Inferior Good | a type of product that people buy less of as their income increases |
| Law of Demand | when the price of a good or services increases the quantity demand decreases and when the price decreases the quantity demand increases |
| Marginal Revenue | the additional revenue a company earns by selling one more unit of a product |
| Market Supply Schedule | a table or graph that shows how many units of a product will be supplied at different prices |
| Minimum Wage | the lowest amount that an employer is legally allowed to pay an employee for the work that they do. |
| Normal Good | a good that people buy more of as their income increases |
| Physical Capital | refers to the tools, machines, equipment, and other tangible assets that firms use to produce goods and services. |
| Scarcity | limited availability of resources compared to the unlimited wants and needs of people |
| Substitute Effect | refers to the changes in the consumption of a good resulting from a change in the price of a related good. |
| Production Possibilities | refers to the different combinations of goods and services that can be produced within the available resources and technology |
| Opportunity Cost | the cost of the next best alternative that must be given up in order to pursue a certain action or decision |
| Utilization of Resources | Efficiency - all resources are used (any point on the line) Ineffective - not using all resources (below the line) Unattainable - (above the line) |
| Pure Monopoly | a single firm is the sole producer and supplier of a good or service and there is no close substitutes |
| First Characteristic of a Monopoly | One Seller (No comp) |
| Second Characteristics of a Monopoly | No Substitutes of good quality |
| Third Characteristics of a Monopoly | Entry into the market is blocked by barriers |
| Fourth Characteristics of a Monopoly | Almost complete control of a market price |
| Four Types of Monopolies | Natural, Geographic, Technological, and Government |
| Natural Monopoly | 1. Produce products for lowest cost and force competitors out of business 2. Large investment needed 3. More efficient to have one company |
| Geographic Monopoly | 1. Best location 2. Only local supplies of good/service |
| Technological Monopoly | 1. New Invention 2. Government Patent |
| Government Monopolies | 1. Created by legal barriers to entry |
| Oligopoly | a market structure in which a few firms dominate the market. These firms have a significant control over the market, they tend to sell similar products and they have a large market share. |
| Examples of Oligopolies | 1. Airline Industry 2. Motor Vehicles 3. Electric Bulbs 4. Greeting Cards |
| Competition | the situation in which different businesses are trying to sell similar products or services to the same group of customers |
| Perfect Competition | a market structure where there are many buyers and sellers, and the goods being sold are exactly the same |
| Monopolistic Competition | when many companies offer competing products or services that are similar, but not perfect, substitutes. |
Created by:
pkwarrior
Popular Economics sets