Scar-City
The choice that you give that hurts the most.
What is Opportunity Cost?
A business or country produces more goods than any other business with the same amount of resources
What is absolute advantage?
Willingless to buy something.
What is demand?
The different quanities of a good that sellers are willing to sell or produce.
What is Supply?
Middle point in a supply and demand curve.
What is Equilibrium?
The science of scarcity.
What is Economics?
The quantity of goods and services used in the process of production
What is Input?
An inverse relationship between price and quantity.
What is the law of demand?
A direct relationship between price and quantity.
What is the law of supply?
When factors of production aren't perfectly substitutable for producting two goods.
What is increasing opportunity cost?
Shows the different combinations of two goods that can be produced using full resources.
What is the PPC?
The idea of specialization of a product and trade at a lower opportunity cost.
What is terms of trade?
As you consume something more, the satisfication will decrease.
What is the law of deminishing marginal utility?
When the quantity supplied is greater than the quantity demanded.
What is a Surpuls?
Higher price for a good decreases the purchasing power of consumer's incomes so that they cannot buy as much of that good.
What is the Income Effect?
Land, Labor, Capital, Entrepreneurship.
The quantity of goods and services produced
What is Output?
Goods that can replace other goods
What are Substitues?
When the quantity demanded is greater than the quantity supplied.
What is a Shortage?
Govt set price which prevents price from performing rationing function in market system; creates shortage.
What is a price ceiling?
Change in technology.
What is a PPC shifter?
Countries can produce at a lower opportunity cost than any other producer
What is comparative advantage?
"All outside factors are held constant".
What is Ceteris Paribius?
A shift of the supply curve, which changes the quantity supplied at any given price.
What is a change in supply?
An economy that relies on government to determine who gets what.