Econ Basics
Limited resources and unlimited wants.
A person or group of people living in the same residence.
What is a household?
Rivalry among sellers to attract customers while lowering costs.
What is competition?
The simplest market structure in which many sellers produce essentially the same product.
What is perfect competition?
Agreement among members of an oligopoly to set prices and production levels.
What is collusion?
What are trade-offs?
One's own personal gain.
What is self-interest.
A period of macroeconomic expansion followed by a period of contraction or decline.
What is a business cycle?
A market structure in which there is only one seller.
What is a monopoly?
When competitors cut their prices very low to win business.
What is a price war?
These are factors of production.
What are land, labor and capital?
Term for the self-regulating nature of the free market.
What is the invisible hand?
Concept that people have the right and privilege to control their possessions as they wish.
What are private property rights?
A market structure where slightly differentiated products are sold.
What is monopolistic competition?
A formal organization of producers that agree to coordinate prices and production.
What is a cartel?
The most desirable alternative given up as a result of a decision.
What is an opportunity cost?
Belief that democratic means should be used to redistribute wealth in society.
What is socialism?
The study of the behavior and decision making of small units, such individuals, families, households and businesses.
What is microeconomics?
Factors that make it difficult for new firms to enter the market.
What are barriers to entry?
Most famous anti-trust legislation.
What is the Sherman Antitrust Act of 1890?
Deciding whether or not to use one additional unit of resource.
What is thinking in the margin?
All economic and political power resting in the hands of the government.
What is communism?
Concept that everyone can compete in the marketplace.
What is open opportunity?
Market structure in which a few large firms dominate a market.
What is oligopoly?
The government accused Microsoft of using this to drive out competitors.
What is predatory pricing?