24 terms

English	Photos
TANSTAA"F"L	There Ain't No Such Thing As A "Free" Lunch
Tradeoff	choices you have
Marginal	additional
Economics	study of choices made because of scarce resources to MAXIMIZE benefits
Opportunity Cost	value of next best thing
Ceteris Parabis	all other things being equal
Wants	unlimited
Resources	scarce
Adam Smith	wrote "The Wealth of Nations," came up with specialization
Comparative Advantage	the ability to produce a good at a lower opportunity cost than another producer
Factors of Production	resources that can be used to produce goods and services
Natural Resources	found on/in earth (must be scarce and paid for)
Human Resources	human effort exerted during production
Capital Resources	manufactured materials used to create products ($ isn't one)
Technology	use of technology knowledge and methods to create new products or make existing products more efficiently
Law of Demand	consumers buy more of a good when its price decreases and less when its price increases
Law of Supply	suppliers will normally offer more for sale at higher prices and less at lower prices
Diminishing Marginal Utility	each successive unit of product yields less and less usefulness (consumer gets more because price is lower)
Elasticity	steepness of slope
Elasticity of Demand & Supply	how responsive people are to changes in price
Elastic	responsive to price
Inelastic	not responsive to price
Price Floor	artificial price set by the gov't ABOVE the Price Equilibrium that's designed to protect suppliers
Price Ceiling	artificial price set by the gov't BELOW the Price Equilibrium that's designed to protect consumers

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• "Marginal" image
• "Law of Demand" image
• "Law of Supply" image

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