IB Economics Definitions Final Review 1

Possible combinations of two goods that can be produced can be shown  on...

When all other things are held constant

When use by one person prevents use by another

Supply-side policies that may reduce wages and regulatory protections are known as

When price changes but there is no change at all in quantity, demand for a good is...

Aggregate demand is directly altered by...

When governments make payments to lower prices and increase production

Demand for these kinds of goods falls as income increases

The purchase of new buildings, machinery, vehicles, or housing is called by economists ...

An economy where all economic decisions are made by a central authority

When one party in a transaction has relevant information, but the other does not

Unrecorded economic activity in which taxes and regulations are avoided

'Expectations of future prices' is a determinant of...

Unlimited wants but limited resources

Formula for calculating Price Elasticity of Demand

Public goods are both...

When marginal cost = marginal benefit

A form of market failure

Opportunity Cost is...

Goods that are bought as a display of wealth; as price rises, quantity sold of them rises

A price imposed below the equilibrium price

When the market does not allocate goods efficiently

Branch of economics that deals with unemployment, economic growth, and income distribution

Development in which present needs and future needs are accounted for is called..

Signals and incentives in a market economy are sent by