Microeconomics
This term refers to the study of how individuals and businesses make choices about allocating limited resources.
What is microeconomics?
When this occurs, there is more of a product available than consumers are willing to buy at a certain price.
What is a surplus?
This market structure is characterized by a single seller with no close substitutes for the product.
What is a monopoly?
This point on a supply and demand graph represents where the quantity supplied equals the quantity demanded.
What is market equilibrium?
This term refers to the skills, knowledge, and experience possessed by an individual that can enhance their economic productivity.
What is human capital?
This economic principle explains that as the price of a good decreases, the quantity demanded usually increases.
This term describes the maximum price that consumers are willing to pay for a good or service.
What is the price ceiling?
In this market structure, many firms sell similar but not identical products, leading to competition based on price and quality.
What is monopolistic competition?
When the price is above the equilibrium price, this occurs, causing excess supply in the market.
What is a surplus?
Investing in education and training is a way to increase this type of capital.
What is human capital?
This concept describes the situation where limited resources are available to meet unlimited wants.
What is scarcity?
A decrease in the price of a good typically leads to this effect on quantity demanded.
What is an increase in quantity demanded?
This term describes a market with many buyers and sellers, where no single entity can control the market price.
What is perfect competition?
A decrease in demand, while supply remains constant, typically causes this effect on the equilibrium price.
What happens to the equilibrium price? (It decreases.)
What is land, labor, capital, and entrepreneurship?
This term refers to the number of goods or services that producers are willing to sell at different prices.
What is supply?
When the price of a complementary good rises, this usually happens to the demand for the original good.
What happens to demand? (It decreases.)
In this market structure, a few large firms dominate the market, often leading to collusion on prices.
What is an oligopoly?
This term describes the price at which quantity supplied and quantity demanded are equal in a market.
What is the equilibrium price?
This term describes the economic benefits that result from having a well-educated and skilled workforce.
What is productivity?
This economic model shows how supply and demand interact to determine market price and quantity.
What is the supply and demand model?
This is a graphical representation of the relationship between the price of a good and the quantity supplied.
What is a supply curve?
In this type of market, firms have some control over their prices because their products are differentiated.
What is monopolistic competition?
If there is a sudden increase in supply while demand remains unchanged, this will happen to the equilibrium quantity.
What happens to the equilibrium quantity? (It increases.)
The concept that workers with specialized skills tend to have a higher earning potential is known as this.
What is skill premium?