econ vocab

this is for economics, most of these words will be the test that EVERYONE that is econ will have to take
the combination of limited economic resources and unlimited wants results in a condition
distribute resources in order to satisfy the needs and wants
the level of output that results from a given level of input
the use of smallest amount of resources to produce the greatest amount of output
division of labor
assigning a small number of tasks to each worker
the focus on one activity, gain expertise
the study of how groups or nations allocate their limited(scarce) resources in effort to satisfy their unlimited needs and wants
people who decide to buy things
people who make things to satisfy consumers
human resources
human effort exerted during the production process, can be physical or intellectual
capital resources
manufactured materials used to create products
capital goods
buildings, machinery, used to make consumer goods
small business, the effort to develop a combination of the other factors to make a profit
producers and consumers agree to provide one type of item in return for another
societies exchange one set of goods for another
the development of a standard means of exchange
allows consumers to use items before completing payment for the merchandise
expressed as an amount of money, or a price
usefulness to a person
can fulfill all of their needs without outside assistance
the reliance among economic actors
quantity demanded changes by a larger percentage than does price
unit elastic
quantity demanded changes by the same percentage as does the price
quantity demanded changes by a smaller percentage then does the price
helps producers understand profit potential by knowing the prices of resources
encourages you to behave in a particular way, crucial to a market economy
incentives to supply products, creates more consumer choices
1.provides for the wise use of resources, prices tell producers what to use 2. quickly delivers information, so its easy to compare prices and make quick decisions
market can allow for quick production and consumption changes according to trends
a side affect for people not directly connected with the production or consumption of a good or service
public goods
any good or sevice that is consumed by all members of a group
extreme version of flexibility, drastic drop in prices can cause companies to go out of business or necessities to become unaffordable
price ceiling
a government regulation that establishes a maximum price for a particular good
price floors
is a government regulation that establishes a minimum level for prices
minimum wage
the lowest amount an employer can legally pay a worker for a job
a system in which government or other institution decides how to distribute a product
black markets
goods are exchanged illegally at prices which are higher than officially established prices
a market where a single seller has a total or nearly exclusive control over a particular good or service
a market where a few large sellers control most of the production of a good or service
an effort by producers or sellers of a product to security set production levels of prices
perfect competition
an ideal market that includes a large number of sellers of identical products or services. No one seller controls supply or prices
monopolistic competition
sellers offer different rather than identical products. each seeks to have monopoly like power by selling a unique product
non-price competition
sellers compete on basis other than price
interdependent pricing
sellers in oligopoly maintain a degree of control over price by being very responsive to or dependent on the pricing actions of their competitors
price leadership
one of the largest sellers in the market takes the lead by setting a price for its product
price war
sellers aggressively undercut each others prices in attempt to gain market snare
companies openly organize a system of pricing selling and market sharing
natural monopoly
a single large seller that produces a good or service most efficiently
economies of scale
the sellers large scale or size allows it to use its human , capital, and other resources more efficiently and economically than if those resources were divided among smaller products
geographic monopoly
forms because a markets potential profit is so limited by its geographic location that only a single seller decides to enter the market
technological monopoly
develops when a producer develops new technology that enables the creation of a new product or changes the way an existing product is made
grants a company or individual the exclusive right to provide, rent, use and sell invention or discovery for a limited amount of time
US government gives musicians ect. the rights to publish, duplicate ect. their works
government monopoly
provide public goods that cannot always be supplied through the normal workings of the price system
huge monopolies by big businesses
economic systems prosper when the government does not interfere with the market in anyway
antitrust legislation
designed to monitor and regulate big business and prevent monopolies from forming
price discrimination
the practice of offering different customers under the same circumstances
labor force
all people who are at least 16 years old who are working or looking for work
hourly, weekly, or yearly pay that a worker receives in exchange for labor
intrinsic rewards
non monetary reasons for working at a particular job
the process of mechanizing all major forms of production
dependent on machines to produce goods
producing goods primarily though animal and human power
affirmative action
making up for patterns of discrimination on against women, members of minority groups and others who were traditionally disadvantaged in the work place
numerical goals for hiring and promoting women and minorities