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Chapter 1
Chapter 4
Chapter 6
Chapter 9
Chapter 16
100
What is the condition that results from society not having enough resources to produce all the things people would like to have?
Scarcity
100
What is microeconomics?
part of economic theory that deals with behavior and decision making by individual units, such as people and firms.
100
What does rationing mean?
system under which a government agency decides everyone's "fair" share.
100
What is a sin tax?
relatively high tax designed to raise revenue while reducing consumption of a socially undesirable product such as liquor or tobacco.
100
What is a quota?
limit placed on the quantities of a product that can be imported.
200
What is a entrepreneur?
A risk-taker in search of profits who does something new with existing resources.
200
What is Law of Demand?
states that the quantity demanded varies inversely with its price.
200
What does rebate mean?
partial refund of the original price of the product.
200
What is a incidence of a tax?
final burden of the tax
200
What is a protective tariff?
tariff that is high enough to protect less-efficient domestic industries.
300
What does GDP stand for?
Gross Domestic Product
300
What is substitution effect?
change in quantity demanded because of the change in the relative price of the product.
300
What does economic model mean?
analyze behavior and predict outcomes.
300
What is a tax loophole?
exceptions or oversights in the tax law that allow some people and businesses to avoid paying taxes.
300
What does WTO mean?
World Trade Organization
400
What does durable goods include?
both capital and consumer goods
400
What is elasticity?
general measure of responsiveness- an important cause-and-effect relationship in economics.
400
What is the equilibrium price?
the price at which the number of units produced equals the number of units sold.
400
What is a sales tax?
general tax levied on most consumer purchases-is much similar.
400
What does NAFTA mean?
North American Free Trade Agreement
500
What is a nondurable good?
Item that lasts for fewer than 3 years when used on a regular basis.
500
What is inelastic?
given change in price causes a relatively smaller change in the quantity demanded.
500
What does surplus mean?
situation in which the quantity supplied is greater than the quantity demanded at a given price.
500
What is a progressive tax?
tax that imposes a higher percentage rate of taxation on higher incomes than on lower ones.
500
What is trade deficit?
whenever the value of the product it imports exceeds the value of the products it exports.