Basics of Economics
The science of resource allocatiom
Economy
A place for exchanging goods and services
Market
Increase in a country's GDP over time
economic growth
Which is determined by the interaction of supply and demand
Price
Use of goods and services
Consumption
What market factor contributes to improving the quality of goods and reducing prices for consumers
Competition in the market
An increase in the general level of prices for goods and servises
Inflation
Expenditures on the production of goods and services
Costs
The desire and ability of a consumer to purchase a product or servise at a certain price and at a certain time
Demand
Income
The level of people who are willing to work but do not have jobs
Unemployment
A market in which there is a single seller who controls supply
Monopoly
The quantity of goods offered on the market
Supply
What condition occurs in the market when the supply of a product exceeds its demand
Surplus
The total value of all goods and services produced in a country in a year
Gross Domestic Product (GDP)
The degree to which demand changes in response to a change in price
A product of labor that has value and is distributed in society through exchange, purchase and sale.
Good/commodity/merchandise/product/item
What happens when demand for a product or service exceeds supply
Scarcity
Periods of growth and decline in the economy
Economic cycle
The cost of lost profits from the best use of resources
Opportunity costs