Econ Basics
All natural resources used to produce goods and services.
What is land?
PPC
What is production possibilities curve?
Commitment to the value of work and purposeful activity.
What is work ethic?
The desire to own something and the ability to pay for it.
What is demand?
When a firm's start up costs are high, but average costs fall for each additional unit it produces.
What are economies of scale?
The knowledge and skills a worker gains through experience.
What is human capital?
GDP
What is Gross Domestic Product?
The part of the economy that involves transactions of the government.
What is the public sector?
An increase in someone's income causes demand for these godos to fall.
What are inferior goods?
A license that gives the inventor of a product the exclusive right to sell it for a certain period of time.
What is a patent?
Ambitious leaders who combine land, labor and capital to create new goods and services.
What are entrepreneurs?
MC
What is Marginal Cost?
Someone who would not pay for a good or service, but gets the benefits of it anyway.
What is a free rider?
What is equilibrium?
The right to sell a good or service within a certain market.
What is a franchise?
Using resources in such a way as to maximize the productionof goods and services.
What is efficiency?
IPO
What is initial public offering?
Situation where the market on its own does not distribute resources efficiently.
What is a market failure?
The total amount of money a firm receives by selling its goods or services.
What is total revenue?
Dividing customers into groups based on how much they will pay for a good.
What is price discrimination?
Law that states that as we shift factors of production from making one good or service to another the cost of producting the second item increases.
What is the law of increasing costs?
CPI
What is consumer price index?
An economic side effect of a good or service that generates benefits or costs to someone other than the person making a decision.
What is an externality?
Lating phrase that means "all other things constant."
What is ceteris paribus?
The removal of some government controls over a market.
What is deregulation?