10 Principles
Rational People Think
What is "at the margin?"
When Prices rise and quantity supplied rise
What is the Law of Supply?
Amount buyers are willing and able to purchase
Trade makes it possible for people to do this
What is specialize?
A market in which there are only a few sellers, each offering competitive products by other firms in the markets.
What is an "oligopoly?"
People Face
The sum of all individual sellers' quantity supplied
What is market supply?
As prices rise and quantity demanded falls
What is the Law of Demand?
Producer who has a smaller opportunity cost in producing a certain good
What is comparative advantage?
Type of market when the government gives a firm exclusive right to sell a good or service
what is a "Government-Created Monopoly?"
A country's standard of living depends on this
What is the ability to produce goods and services?
Excess supply
What is surplus?
Specific types of goods that experience an increase in quantity demanded as price increases
What are veblen and giffin goods?
A producer has this when they require a smaller quantity of inputs to produce a good
What is absolute advantage?
Type of market where a single firm can supply a good or service to an entire market at a lower cost than could two or more firms
What is a "Natural Monopoly?"
A good way to organize economic activity
What are markets?
When input prices affect the quantity supplied
What is a shift in the supply curve?
Related goods that shift the demand curve
What are substitute and complementary goods?
Net Exports equals
What is Exports minus Imports?
A type of market with many buyers and sellers trading identical products so that each buyer and seller is a price taker
What is a "Competitive Market?"
This happens when the government prints too much money
What is inflation?
The goal of producers and sellers in the marketplace
What is maximizing profit?
Excess Demand
What is a shortage?
A tariff is this kind of tool
A type of market with many firms all producing similar products. There are no barriers to entry, and producers and consumers are price takers.
What is a "Perfectly Competitive Market?"