Economics - Chapters 1-6

Products that can only be consumed or used for a short time. Example is food because it decays.

portion of change in qty demanded caused by change in price that changes price of other things

Government payment to encourage or protect certain economic activity

Combination of desire, ability, and willingness to buy a product

System in which the government owns and controls some factors of production.

The highest legal price that can be charged for a product.

Quantity of output supplied that is exactly equal to the quantity demanded

Market economy where people freely carry on economic affairs but can have government regulation

Rule stating that more will be demanded at lower prices and less at higher prices

Economic & political system in which factors of production are owned and directed by the state.

Principle that more will be offered for sale at higher prices than at lower prices

Price where quantity supplied equals quantity demanded

Lowest legal wage that can be paid to most workers.

Price floor for agricultural products set by the government to stabilize farm prices

A chart showing the quantities offered for a sale at each possible price in the market

Satisfaction or usefulness obtained from acquiring one more unit of a product

A fundamental problem in every society

Mechanism through which buyers and sellers of an economic product or service come together

System that has some combination of traditional, command, and market economies

The different amounts offered for sale at each possible price in the market

Graph showing how a change in the amount of a single variable input affects total output

Economic action done or brought about by free choice

Requiring large amounts of investment in equipment in relation to labor

The lowest legal price that can be paid for a product

Manufactured good used to produce other goods or services

Products related in a way that an increase in the price of one reduces the demand for the other

The role of the consumer as ruler of the market.

Quality of life

Someone who organizes and manages land, labor and capital to make a profit

Reliance on others to produce goods and services we need