What are we even talking about?
The branch of knowledge concerned with the production, consumptions, and transfer of wealth.
What is Economics?
Commodities (goods or services) bought from a foreign country.
What is an Import?
The consumer's willingness and ability to purchase some quantity of a commodity based on the price of that commodity.
What is Demand?
Offering goods and services for sale. Also known as how much of a good is being offered.
What is Supply?
A good that increases in demand when consumer income rises. Example: new cars, brand name items, etc.
What is a Normal Good?
A general and progressive increase in prices.
Inflation
Any commodities or services used to produce goods and services.
Factors of Production
Any one of a variety of different systems, institutions, procedures, social relations and infrastructures whereby a person's trade, and goods and services are exchanged, forming part of the economy. It is an arrangement that allows buyers and sellers to exchange items.
Market
The fundamental economic problem of having seemingly unlimited human needs and wants in a world of limited resources.
Commodities (goods or services) sold to a foreign country.
What is an Export?
Equilibrium Quantity - The amount demanded and supplied at the equilibrium price, where demand equals supply.
What is the Equilibrium Quantity?
The market price at which the quantity supplied of a commodity equals the quantity demanded.
What is the Equilibrium Price?
A good exclusively owned that cannot be simultaneously used by others.
What is a Private Good?
The total spent for goods or services including money and time and labor.
Cost
The work done by people in the workforce.
Labor
A market in which there are many buyers but only one seller.
Monopoly
The loss of benefits that could have been received from making a different choice, even if the benefits are lesser than the choice made.
What is Opportunity Cost?
An excess of production or supply over demand.
What is a Surplus?
The amount of a product that consumers wish to purchase in some time period.
What is Quantity Demanded?
The specific number of units of a product in the economy that is provided by producers at a given price level
What is Quantity Supplied?
Goods that, "go together." Such as, cookie dough and chocolate chips.
What are Complement Goods?
The ratio of the percent change in one variable to the percent change in another variable.
Elasticity
The factor of production that includes the natural resources used to create a good or service.
Land
Market form in which a market or industry is dominated by a small number of sellers.
Oligopoly
The branch of economics that studies the overall working of a national economy.
What is Macroeconomics?
A disparity between the amount demanded for a product or service and the amount supplied in a market. Essentially, more is demanded than can be supplied.
What is a Shortage?
A cost or benefit, not transmitted through prices, incurred by a party who did not agree to the action causing the cost or benefit. Essentially, an outside factor that affects the market. This is entirely out of the control of those in the market
What is an Externality?
The ability of a party (an individual, a firm, or a country) to produce a particular good or service at a lower opportunity cost than another party.
What is Comparative Advantage?
Goods which may replace each other in use.
What are Substitute Goods?
The cost advantages that a business obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased.
Economy of Scale
The factor of production that includes the assets available for use in the production of further assets.
Capital
A market in which there are many sellers but only one buyer.
Monopsy
The branch of economics that studies the economy of consumers or households or individual firms.
What is Microeconomics?
A measure that is to be maximized in any situation involving choice. The overall benefit gained by consumption of a good or service.
What is utility?
Consumers buy more of a good when its price decreases and less when its price increases..
What is the Law of Demand?
The tendency of suppliers to offer more of a good at a higher price. The relationship between price and quantity supplied is usually a positive relationship. A rise in price is associated with a rise in quantity supplied.
A good that decreases in demand when consumer income rises. Example: used cars, great value brand items, etc.
Inferior Good
a good that is non-rivalrous and non-excludable.
Public Good
The factor of production that includes the people who combine the other factors of production to generate profit.
Entrepreneurship
A concept within economic theory wherein the allocation of goods and services by a free market is not efficient.
Market Failure