question
microeconomics
answer
The study of economics on a small-scale, focused on individual units and participants, such as business owners, workers, households, and markets.
question
interdependence
answer
Depending on one another for resources and products, includes individuals as well as countries.
question
circular flow diagram
answer
A model that shows the interdependence of businesses, households, government, banks, and the foreign sectors. Money flows in a circular direction, and goods, services, and resources flow in the opposite direction.
question
product market
answer
the market in which households purchase the goods and services that firms produce
question
resource market
answer
Also known as factor market, a market in which households sell and firms buy economic resources.
question
firms
answer
Also known as businesses or producers, institutions that organize the production of goods and services, people who make goods and services
question
households
answer
Also known as consumers, as individuals or in groups living under one roof, people who buy goods and services
question
services
answer
Actions or activities that one person performs for another, and are consumed at the same time they are produced
question
goods
answer
Physical objects such as clothes or shoes, items purchased to satisfy needs and wants, something that you can touch or hold.
question
law of supply
answer
The principle that producers will normally offer more for sale at higher prices and less at lower prices
question
law of demand
answer
The principle that consumers will buy more of a good when its price is lower and less when its price is higher
question
quantity supplied
answer
the amount of a good that sellers are willing and able to sell
question
quantity demanded
answer
the amount of a good that buyers are willing and able to purchase
question
market clearing price
answer
The price of goods or a service at which quantity supplied is equal to quantity demanded, also called the equilibrium price, at the intersection of the demand curve and the supply curve
question
determinants of supply
answer
Also known as shifters of supply, changes in costs of productive resources, government regulations, number of sellers, producer expectations, technology, and education
question
determinants of demand
answer
Also known as shifters of demand, changes in related goods, income, consumer expectations, preferences/tastes, and number of consumers
question
substitute goods
answer
Two or more goods that satisfy a similar need, so that one good can be used instead of the other. If two goods are substitutes, an increase in the price of one leads to an increase in the demand for the other.
question
complimentary goods
answer
Products and services that are used together. When the price of one falls, the demand for the other increases (and conversely). Ex. Cell phones and cases.
question
price floor
answer
A legal minimum on the price at which a good can be sold, usually set by the government.
question
surplus
answer
A result of price floors, a situation in which quantity supplied is greater than quantity demanded
question
price ceiling
answer
A legal maximum on the price at which a good can be sold, usually set by the government.
question
shortage
answer
A result of price ceilings, a situation in which quantity demanded is greater than quantity supplied
question
sole proprietorship
answer
A business owned by one person
question
partnership
answer
A business in which two or more persons combine their assets and skills
question
corporation
answer
A business owned by stockholders who share in its profits but are not personally responsible for its debts
question
liability
answer
An amount owed by a business
question
monopoly
answer
A market in which there are many buyers but only one seller, complete control of a product or business by one person or group
question
oligopoly
answer
A market in which control over the supply of a commodity is in the hands of a small number of producers and each one can influence prices and affect competitors.
question
monopolistic competition
answer
A market structure in which barriers to entry are low and many firms compete by selling similar, but not identical, products.
question
pure competition
answer
Also known as perfect competition,
A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
