Goods
A good that does not last longer than 3 years.
What is a nondurable good?
The type of economy that is controlled by a centralized authority.
What is a command economy?
This effect occurs when the price of a good falls and consumers tend to buy more of that good.
What is the income effect?
A group of firms that produce similar products or provide similar services.
What is an industry?
The author of The Wealth of Nations.
Who is Adam Smith?
The type of good that is directly related to one's income.
What is a normal good?
This type of economy is based upon custom, heredity, and caste.
What is a traditional economy?
The result of a price ceiling, such as rent-controlled apartments.
What is a shortage?
An illegal system that develops to avoid governmental regulations.
What is the black market?
The gunpowder entrepreneur.
Who is E. I. du Pont?
What is a capital good?
The ability of an entity to produce a good or provide a service at an opportunity cost that is lower than that of another producer.
What is comparative advantage?
The government agency that investigates trade practices.
What is the Federal Trade Commission?
An economy with a large number of independent buyers and sellers who produce a standardized product.
What is perfect competition?
An early American economist and advocate of the principle of Comparative Advantage.
Who is David Ricardo?
What consumers send to producers to let them know what goods are wanted at what prices.
What are market signals?
What is mass production?
The value of the best alternative is foregone, such as potential income, when a different alternative is taken, such as owning a small business.
What is an opportunity cost?
The sole supplier of a good or service that has no close substitutes for the firm's products and a blocked entry into the market.
The founder of the Austrian school of Economics came up with the Diamond-Water Paradox.
Who is Carl Menger?
What is free trade?
The amount of satisfaction resulting from a one-unit increase of a product.
What is marginal utility?
The amount of satisfaction resulting from a one-unit increase of a particular product.
What is the marginal utility?
What it is called when there are few firms in an entire industry with significant entry barriers?
What is an oligopoly?
Frenchmen associated with Physiocracy.
Who is Pierre Samuel du Pont?