Unit 1: Microeconomics

decisions which are made by individuals & groups regarding which needs and wants to they wish to fulfill, and what types of products and services should be produced and bought.

Different sellers try to get buyers to choose their goods (creates lower prices and greater options to get the buyers to select them)

Infinite number of wants for a limited amount of resources

The option you give up when you make a choice (the second best option)

Having extra, undesired goods (greater supply than demand)

Running out of goods (greater demand than supply)

When supply & demand balance each other out and price becomes stable

Costs that businesses have when manufacturing a good/producing a service

The amount at which both suppliers and buyers are willing and able to conduct an exchange

Consumer's desire & willingness to pay a price for a specific good/service

Total amount of goods/services that consumers demand at any given point in time

Supplier's desire & willingness to sell a good for a specific price

Total amount of goods/services that producers supply at any given point in time

things that attract or lure people into a certain action

the act of controlling business behavior through a set of rules or laws

The cost of producing one more unit of a good

Additional satisfaction/utility that a person receives from consuming an additional unit of a good/service

the force that encourages people and organizations to improve their material well-being

A measure of how much one economic variable responds to changes in another economic variable

a market in which buying and selling take place at prices that violate government price regulations

When one interaction impacts another seemingly unrelated context negatively

Positive external effects of producing or consuming a product

A limit placed on the quantities of a product that can be imported

government payment to encourage or protect a certain economic activity

Required payments to a government

A tax on imported goods

Goods that are commonly used with other goods

Products or services that can be used in place of each other. When the price of one falls, the demand for the other product falls; conversely, when the price of one product rises, the demand for the other product rises.