46 terms

econ ch 1-6

law of supply
As a price increases the quantity of the good provided increases, as the price of a good decreases, the number provided decreases.
A value that will purchase a finite quantity, weight, or other measure of a good or service
equilibrium quantity
The quantity supplied and the quantity demanded at the equilibrium price;quantity bought nd sold @ equilibrium price
opportunity cost
cost of nxt best alternative
economic interdependence
econ activites in 1 part of the country or world affect wut happens elsewhere
a way of expressing a need
risk-taking indiv in search of profits;1 of 4 factors of production
capital good
tool,equip,or other manufactured good used to produce other goods nd sevices;a factor of production
form of business organisation recognised by law as separate legal entity w/ all rights nd responsbilities of an indiv,including right to buy nd sell prop,enter into legal contracts,sue,nd be sued
work/labour performed for some1;econ product tht includes haircuts,home repairs,forms of entertainment
financial capital
$ used to buy tools and equip used in production
unincorp.business owned nd operated by 2+ ppl who share profits nd have unltd liability for debts nd obligations of the firm
tangible econ prod thts useful,relatively scarce,transderable to others;used to satisfy wants nd need
physiological/boilogical requirement for maintaining life.this drives econ activity
econ sys in which private citz own nd use factors of production in order to generate profits
combination of 2+ businesses enterprises to form single firm
factors of production are...?
command econ
gvt dictates how much u make,etc;the communists
market econ
wut the us has;competitive,stressful
traditional econ
oldest person in charge;very little growth
law of demand
wen price of prod goes up,demand for prod goes down
thights tht go 2geth
demand dec
wut happens if $ of complements inc?
consumer income
1.thing causes change in demand?
consumer taste
2.thing casues change in demand? (popularity of prod)
# of consumers
3.thing causes change in demand?
consumer expectations
4.things causes change in demand?
price of complements
5.things causes change in demand?
price of substitutes
6.thing causes change in demand?
cost of influence
1.wut causes change in supply?
2.wut causes change in supply
3.wut causes change in supply
# of sellers
4.wut causes change in supply
5.wut causes change in supply
6.wut causes change in supply
gvt payment to an indiv,business,or other grp to encourage or protect a certain type of econ activity
person who uses goods nd services to satisfy wands nd needs
reason to study econ
cuz scarcity affects almost every decision ppl make.its the study of how ppl try to satify wut appears to be seemingly unltd nd compelling wants thru careful use of relatively scarce resources
production possibilities graph
represents various combinations of goods nd/or services an econ can produce wen all productive resources are fully employed
the main econ prob.its a cond tht results from socierty not having enough resources to produce all things ppl would like to have
supply schedule
listing of various quantities of particular prod supplied @ all possible prices in the market
supply curve
shows various quantities supplied @ each nd every price tht might prevail in the market
change in quantity supplied
amt tht producers bring to market @ any given price.so,it shows as mvmt along supply curve,just like the case of demand.it can either inc or dec,depending on whether more or less of prod is offered
market equilibrium
sit in which prices are relatively stable,nd quantity of goods/services supplied is eq to quantity demanded
equilibrium price
price tht clears the market by leaving neither a surplus nor a shortage @ end of trading period