Economics Final

Economic system based on private ownership of factors of production.

Fixed economy that includes some gov't protections & regulations to adjust free enterprise.

Study of the behavior of the economy as a whole; concerned with large scale economic activity.

Person who does not pay for a good or service but who benefits from it when it is provided.

Market structure where many sellers offer similar, but not standardized, products to consumers

Average cost of production falls as the producer grows larger

Use of non-price factors- style, advertising, etc- to convince customers to chose a producer

Marginal benefit from each add'l unit of a good/service tends to decline as each is used

The economic and political union of European nations established in 1993

Market value of all final goods and services produced within a nation in a given time period

A business made up of semi-independent businesses that all offer the same products or services

Setting of prices below cost for a time to drive smaller competitors out of a market

Bus. owned by shareholders owning rights to company's profits but face only limited liability

Use of trade barriers between nations to safeguard domestic industries

Any law passed to limit free trade between nations

Graph of how much a good/service an individual is willing and able to purchase at each price.

Producers in one nation depend on others to provide goods and services they do not produce

A situation in which the government spends more than it takes in

A situation in which the government takes in more than it spends

Business costs that vary with the level of production output

Demand is greater than supply, usually the result of prices being set too low

Products used together, so ↑↓ in demand for one will result in ↑↓ in the demand for the other.

A contract a corporation issues that promises to repay borrowed money, + interest, on schedule.

Study of behavior of individual players - i.e. individuals, families, businesses - economically

Measure of how responsive consumers are to price changes in the marketplace

The legislative limit on the amount of national debt that can be issued by the treasury

Economic system which there is no private property ownership and little/no political freedom.

Ideal market economy where none of many sellers or buyers have control over the price of a good

Extended period of high unemployment and reduced business activity

The sum of all the demand in an economy

Anything that hinders a business from entering a market

Supply is greater than demand, usually the result of prices being set too high

A sustained rise in the general price level, or sustained fall in the purchasing power of money

Examining the costs and expected benefits of a choice as an aid to decision making.

Combining two or more companies to form a single company

Condition in which economic resources are used to produce maximum amount of goods and services.

An established maximum price that sellers may charge for a product

Market structure where only one seller sells a product for which there are no close substitutes

Quantity supplied and quantity demanded are not in balance.

Price at which the quantity demanded equals the quantity supplied

Goods and services provided by the government and consumed by the public as a group.

The ability of everyone to enter and compete in the market of his or her own free choice.

An established minimum price that buyers must pay for a product