26 terms

Economics Midterm

STUDY
PLAY
Law of Demand
economic law that states that consumers buy more of a good when its price decreases and less when its price increases
Equilibrium
equality of distribution
Supply
Is the amount of a product that businesses are able to offer for sale (the higher the price = the greater the amount supplied)
Production Possibilities Frontier
Model of scarcity, choice, & opportunity cost, Choice between 2 goods, PPF shows maximum possible output combos of 2 goods given current resources
Law of Supply
the claim that, other things equal, the quantity supplied of a good rises when the price of the good rises
Demand
The desire, willingness, and ability to buy a good or service.
Goods
Things that are grown, gathered, made, or manufactured to meet the needs and wants of society
Services
Are actions performed for a fee
Wants
Items desired after needs are met (ex. x-box 360, designer cloths)
Needs
Basic things that are needed for survival ( Ex. Food, clothing, and shelter (healthcare- medicine))
Natural Resources
Supplies or materials that are readily
Human Resources
The workers that provide for the wants and need of society
Capital Resources
The funding needed to pay for natural and human resources and capital goods
Capital Goods
The buildings, machines, and tools used in the production of other goods
Private Goods and Services
Are bought for personal use by the consumer
Producer
someone who manufactures something
Consumer
A person who buys and uses goods and services
Scarcity
limited quantities of resources to meet unlimited wants
Surplus
more than is needed, desired, or required
Federal Reserve
controls America's money supply, by controlling the interest rates of banks, also america's central bank
Goldsmith
Someone who would hold onto money and entitle someone that they owed them it
U.S. mints
Create the money for the U.S.
Bartering
the trading of goods without the exchange of money
Opportunity Cost
the value of your best forgone alternative (what you give up when you make a choice)
Public Good and Services
Are provided by the government and they are meant to benefit everone
5 Properties of Money
easily divisible, hard to counterfeit, value for its weight, must be an acceptable medium of exchange.