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
ECONOMICS
ECONOMICS 3-5
| Term | Definition |
|---|---|
| Demand | the desire to own something and the ability to pay for it. |
| Demand for a product demands | depends on potential buyers income and the availability of status |
| poverty threshold | an income level below that whic his needed to support families |
| quality demand | amount people are willing to pay |
| law of demand | when a goods price is lower, the quality demand is greater |
| substitution effect | consuming less of that good and substituting it with another good. |
| income effect | how changes in a consumers real income affect their demands for goods |
| demand schedule | a table that lists the quantity of a good that a person would purchase at various prices |
| market demand schedule s | shows the quantities demanded at various prices by all consumers in the market |
| dmand curve | a graph of a demand schedule |
| ceteris paribus | all other things being equal |
| non price determinants | multiple factors that cause demad to change |
| normal goods | consumer demand more of when their income increases |
| inferier goods | goods you would buy in smaller quantities |
| elasticity of demand | a way consumers respond to price changes |
| inelasticity | is when you buy the same amount of a good after a large price income |
| elasticity | is when you buy much less of a good after a small price increase |
| unitary elastic | elasticity equals 1 |
| total revenue | amount of money the company receives by selling its goods. |
| supply | amount of a good that is availbe |
| law of supply | offer more of a good as its price increases and less as the price falls . |
| quantity supplied | how much of a good a producer is willing and able to sell at a specific price |
| market supply schedule | shows the relationship between prices and the total quantity supplied by all firms in a market |
| elasticity of supply | measures how firms will respond to change in tehe price of a good |
| marginal product of labor | change in output from hiring one more worker |
| increasing marginal returns | additional unit of input resulting in larger increase in output then the previous unit added |
| diminishing marginal returns | adding more workers increase s total output but with a decreasing rate |
| negative marginal return | adding another worker decreases the product input |
| marginal revenue | additional income from selling one more unit of good |
| average cost | total cost divided by the quantity produced |
| excise tax | tax on production or sale of a good |
| regulation | gov intervention in a market that affects the price quantity or quality of a good |
| pure competition | a large number of firms all produce essentially the same product |
| commodity | product that is considered the same regardless of who makes or sells it |
| barriers oto entry | factors that make it difficult for new firms to enter a market |
| imperfection competition | market structure that sells to meet the conditions of pure competition |
| start up costs | expenses that a new business must pay before it can begin to sell goods |
| equilibrium | point of balance at which the quantity demanded is equal to the quantity supplied. |
| disequilibrium | when quantity supplied is not equal to hte quantity demanded |
| shortage | quantity demanded is more then the quantity supplied |
| surprlus | when quntity supplied exceeds quantity demand. |
| price ceiling | maximum price legally charged for a good |
| rent control | price ceilings placed on apartment rents to avoid inflation |
| price floor | minimum price that must be paid for a good |
| search costs | financial and oppurtunity cost that consumers pay in search for a product |
| to barter | means to exchange 1 type of good for another |
| a supply shock | sudden shortage of a good |
| rationing | system of distrubuting goods |
Created by:
Marsinajar