Economics Vocabulary 1-45

Change in consumption resulting from change in real income

the force that encourges people/ organization to improve their material well-being

All partners are required to be limited partners

amount of good available

A legal entity owned by an individual stock holder, shares ownership, unlimited life span

When the producer cant satisfy the demand. Ex: Think oil

an alternative we sacrifice in making a decision

Involves only one producer A market dominated by a single seller think : water supply

level of economic prosperity

Increase in income causes demand to fall people no longer want cheap stuff EX.macroni& cheese

Human made resources to create goods and services

Combining two firms into a single firm

because consumers have a choice, they decide what is produced

income people recieve for supplying factors of production

centrally- planned economic system

graph showing most efficent use or resources

something that encourges a certain behavior

Desire to own something and the ability to pay for it

Study of satisfying needs and wants

you are very responsive to change in prices Ex: news paper. Easy to replace? yes

amount suppliers is willing and able to supply at a certain price

Skills and knowledge gained by a worker

Money or valuables belonging to an individuals or business

Physical objects produced in an economy. Ex: Jeans

market in which households purchase goods and services

goods used in place of one another. think skis or snow boards

people can decide what they want to buy and sell

A business owned and managed by a single person

A person who refuses to pay but recieves the benefits

Releis on habit, custom, or tradition to decide economic questions think: native americans

Economics benefits or cost to someone other than the person deciding how much to produce

something created for use by the people like roads and parks

consumers demand more when income increases

sentive to P

Land, Labor, Capital, and entrepreneurship

The exclusive right to sell a good or service

A product that is the same no matter who produces it think : petroleum

Government programs to protect people from unfavorable economic conditions

Graph of demand schedule

( aka. centrally planned economy) central government makes all economics decisions

An agreement to divide the market set prices or limit production

most desirable alternative that is given up

Gov'ernment should not interfere

Actions or activities performed by one person or another

A minimum price for a good or service think: minimum wage

To attract customes through means other than price

A neccessity for survival Ex: food / water

A business organization owned by two or more people who split responsibilities and profits

Partners share responsibilities and liabilities

two goods brought and used together Think: skis and ski boots

governtment sells industries to others

democratic means should be used to evenly distribute wealth

Change in output from hiring one or more person

Show how much is available from all suppliers

Discounted prices for certain sections of society Ex: children

Inefficent use of resources

Limited resources to meet unlimited wants

rivalry among sellers Ex : South cobb vs campbell

you will keep buying despite price increases Ex;medications such as isulin. easy to replace? no

A tax on the production or sale of a good Think: Gasoline

where buyers and sellers meet

suppliers offer more when the price increase

The legally bound obligation to pay debt

consumers demand less when income increases

not very sensitive to P

concentration of production on a limited number of goods and services

when the price increases consumers buy more of another good

increase in demand when income increases because people want better stuff Ex; steak

Goods used to make other goods

anyone can compete in the market place

direct payments of money to poor people. Ex : welfare

periods of contraction and expansion

Chart that lists what is available different prices

deals with entire economics. think GDP

self regulating market place

Government takes over industries

( aka. free enterprice) decisions made on a voluntary basis by individuals

A market structure dominated by a few large firms think: NFL ; airlines

table that lists quantity of all goods in a market

Monoplies

Facts that make it to expensive to compete

An agreement to change one price for a product

companies must provide full information about their products

A formal organization of producers that agree to coordinate prices and production Think: Opec

A maximum price for a good or service think rent control; New York

total value of all final goods and services in a country in a calender year

A market which a large number of firms produce the same product - think tomatoes

the total amount of money collected by a company for goods/ service

Consumers buy more when the price decreases and less when the price increases

A desire - Ex: New

Where the price and demand meet that clears the market

deals with the government

financial gain from transactions

One partner is required to be the general partner

A government payment that supports business

government rid to the poor

microeconomics deals with small units, individuals, families, and businesses

A market in which a good are sold illegally

Deals with individual / firms

Human-made goods to produce other goods

Making a product different from similar product think jeans

market economy with government involvement

ambitious person who combines capital with new ideas

capital assets are own by individuals- creates winners and losers