Microeconomic
What is equilibrium
The intersection of the supply and demand curves
What does the acronym GDP stand for in macroeconomics?
Gross Domestic Product
This economic question: What is the study of how people satisfy their needs and wants by making choices
What is economics
This type of market interaction leads to an equilibrium where buyers and sellers agree on a price.
What is voluntary exchange
The interaction of buyers and sellers in a market that determines the price of a good
What is supply and demand
What is demand
In the market for cakes, this increases when the price of pies increases
What type of unemployment occurs when a steelworker is laid off due to their plant closing and moving to a new location
Structural unemployment
This occurs when more of a good is desired than is available at a given price
What is a shortage
A business structure owned by one person
What is a sole proprietorship
This is a good or service that is necessary for survival
What is a need
What are contractual agreements between private parties
the method by which resources are allocated in capitalism
What macroeconomic problem is characterized by a rapid increase in the general price level of goods and services?
Inflation
A person who combines land, labor, and capital to create new goods and services.
What is an entrepreneur
This refers to the private ownership of resources in a market system.
What is private property rights
When consumers want more of a good, but producers are unable or unwilling to meet the demand
What is a shortage
What is a public good
National defense is an example of this cause of market failure
According to the Solow model, does capital accumulation support long-term economic growth?
support long-term growth, though it doesn't necessarily explain growth in the long run
This is the value of the next-best alternative that is given up when a choice is made.
What is opportunity cost
This shows all possible combinations of two goods that an economy can produce with available resources.
What is a production possibilities curve
This measures how much the quantity demanded or supplied changes in response to a price change
What is elasticity
What is inferior
If the income elasticity of demand is negative, the good is said to be this
What monetary policy tool is most often used by the Federal Reserve to influence the money supply
Open market operations (the buying and selling of government securities)
The process of giving up one benefit to gain another, greater benefit
What is a trade-off
A situation where a firm charges different prices to different groups of customers
What is price discrimination
The situation when a good is considered elastic if the response to a price change is greater than one
What is a large change in demand