limited quantities of resources to meet unlimited wants
production possibility frontier
illustrates the trade-offs facing an economy that produces only two goods; shows the maximum quantity of one good that can be produced for any given quantity produced of the other
the ability to produce a good at a lower opportunity cost than another producer
An inelastic good is inelastic because...
it is needed by consumers, there are few substitutes, and does not use a large percentage of the consumer's income
An elastic good is elastic because...
although it is needed by consumers, there are many substitutes, and uses a large percentage of the consumer's income
In a supply curve, if cost increases...
In a supply curve, if government restrictions increase...
In a supply curve, if a price of a substitute increases, the original product's...
In a supply curve, if the number of firms producing a product increases...
In a supply curve, if the price of an input good increases, the original product's...
In a supply curve, if a technological advance increases efficiency...
In a supply curve, if sellers expect prices to rise in the future...
In a demand curve, if consumer income increases...
In a demand curve, if a product's popularity decreases...
In a demand curve, if a a complimentary good's cost increases, the original product's...
In a demand curve, if a substitute good's cost increases, the original product's
In a demand curve, if consumes expect a good to become more expensive in the future...
In a demand curve, if the market size increases...
the amount of a good that buyers are willing and able to purchase
the ability and desire to purchase goods and services
the amount of a good that suppliers are willing and able to supply at a certain price
a product often used with another product
a product that can be used in place of that product
economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services
economic system that relies on market forces to allocate goods and resources and to determine prices
economic system in which the government controls a country's economy
economic system that combines the free market with limited government involvement
a situation in which quantity demanded equals quantity supplied
law of demand
states that consumers will buy more of a product at a lower price
law of supply
states that suppliers will supply more of a product at a higher price
law of diminishing returns
a law that states that if additional units of one resource are added to another resource in fixed supply, eventually the additional output will decrease
a market in which there are many businesses selling one standardized product
a market in which there is only one supplier of a unique product with no close substitutes
a market in which many companies sell products that are similar but not identical
a business owned by one person
a business owned by two or more people
a business owned by investors in the stock market
shows the inverse relationship between inflation and unemployment
natural rate of unemployment
the normal rate of unemployment around which the unemployment rate fluctuates; 5%
a good that consumers demand less of when their incomes increase
a good that consumers demand more of when their incomes increase
total revenue minus explicit and implicit costs
total revenue minus explicit costs
policy making institutions
the branches of government charged with taking action on political issues
theory that views politics as a conflict among interest groups
theory that groups are so strong that government is weakened
elite class theory
theory that the elite class will rule
the means by which individuals can express preferences regarding the development of public policy
when the combined minorities outnumber the majority
a system of social or political ideas
the process by which people gain their political opinions
group benefits voters
(42%) they think of politics mainly in terms of groups they like/ dislike
nature of the times voters
(24%) their view on politics is limited to whether the times seem good or bad
no issue content voters
(20%) they vote for candiates based on their looks or personality, not on the issues of the election.
(12%) they vote based on their ideology
random digit dialing
random selection of phone numbers
a poll of voters as they leave the voting place
feed false or misleading info to potential voters
critique of polling
bandwagon effect, horse race, politicians become flip-floppers
information leaked to the media to test public reaction to a possible policy
direct quote from a source used in a newscast
someone who brings a policy proposal into the political agenda
events purposely staged for the media
the power of the media to bring public attention to particular issues and problems
a group that seeks to elect candidates to public office
rational choice theory
a theory that explains the actions of voters as well as politicians. It assumes that individuals act in their own best interest, carefully weighing the costs and benefits of possible alternatives.
the gradual disengagement of people and politicians from the parties, as seen in part by shrinking party identification
the displacement of the majority party by the minority party, usually during a critical election period
Sharp changes in the existing patterns of party loyalty due to changing social and economic conditions
New Deal coalition
coalition forged by the Democrats who dominated American politics from the 1930's to the 1960's
historical period dominated by one political party
responsible party theory
assumes that each of the parties are cohesive and unified, will take clear policy positions, will do what is said upon taking office.Does not guanrantee equality or popular sovereignty.
California Democratic Party et al v. Jones
Governance divided between the parties, as when one holds the presidency and the other controls one or both houses of Congress.
voting for candidates of different parties for different offices at the same election
candidate centered campaign
A campaign in which the indivdual seeking election, rather the an entire party slate, is the focus
a condition that occurs when no coalition is strong enough to form a majority and establish policy