AP Econ Vocabulary Review (Final)

Direct, purchased, out-of-pocket costs paid to resource suppliers provided by the entrepreneur

A per unit tax that results in a vertical shift in the supply curve by the amount of the tax

E = 1

Exists if a producer can produce more of a good than all other producers

goods whose demand varies inversely with money income

all natural resources used in the production precess

products whose demand varies directly with money income

Costs that don't vary with changes in shortrun output. Must be paid even when output = 0

Selling essentially the same good to different groups of consumers at different prices

A good that is used together with another good

E = 0

The more of a good that's produced, the greater the opportunity cost of producing the next unit

All manufactured aids used in producing consumer goods

The difference between total revenue and total explicit costs

Has opposite effect of excise tax: lowers the MC of production, forcing the supply curve down

The study of how people/firms use scarce resources to best satisfy unlimited material wants

The study of how households and firms make decisions and how they interact in markets

Indirect, non-purchased, or opportunity costs of resources provided by the entrepreneur

Lower price buyers have incentive to buy a cheaper product thats now relatively more expensive

Physical and mental talents of individuals used in producing goods and services

The additional benefit received from the consumption of the next unit of a good or service

The imbalance between limited productive resources and unlimited human wants

(excess demand) result of a price ceiling below equilibrium price

The lost net benefit to society caused by movement away from the competitive market equilibrium

A minimum price a seller may charge for a product or service

the total amount the seller receives from the sale of a product in a particular time period

The case in which there is only one seller in the market

Difference between the maximum price a consumer is willing to pay and the actual price

The difference between total revenue and total explicit and implicit costs

The ability to set the price above the perfectly competitive level