question
Microeconomics
answer
the study of how households and firms make decisions and how they interact in markets
question
Macroeconomics
answer
the study of economy-wide phenomena, including inflation, unemployment, and economic growth
question
Economic Interdependence
answer
a reliance on others, as they rely on you, to provide goods and services to be consumed
question
Circular Flow Diagram/ Model
answer
a visual model of the economy that shows how dollars flow through markets among households and firms
question
Product Market
answer
the market in which households purchase the goods and services that firms produce
question
Factor (resource) Market
answer
Places where businesses buy the factors (land, labor, capital) from individuals
question
Law of Supply
answer
producers offer more of a good as its price increases and less as its price falls
question
Law of Demand
answer
consumers buy more of a good when its price decreases and less when its price increases
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
Complimentary Good/Service
answer
Goods or services that go together; example Peanut Butter and Jelly
question
Substitute Good/Service
answer
Goods that can be used in place of another good; example Peter Pan vs JIF Peanut Butter
question
Equilibrium (Market Clearing) Price
answer
the price at which the quantity demanded equals the quantity supplied
question
Price Floor
answer
A legal minimum on the price at which a good can be sold
question
Surplus
answer
A situation in which quantity supplied is greater than quantity demanded
question
Minimum Wage
answer
a minimum price that an employer can pay a worker for an hour of labor
question
price ceiling
answer
A legal maximum on the price at which a good can be sold
question
shortage
answer
A situation in which quantity demanded is greater than quantity supplied
question
Rent control housing
answer
Price ceiling created by the government that creates affordable pricing in shelter
question
Sole Proprietorship
answer
a business owned and managed by a single individual
question
Partnership
answer
A business in which two or more persons combine their assets and skills
question
Shared Liability
answer
allows parties to share the risks associated with taking on additional debt, and to protect themselves in the event of legal litigation and lawsuits.
question
Corporation
answer
A business owned by stockholders who share in its profits but are not personally responsible for its debts
question
Monopoly
answer
A market in which there are many buyers but only one seller.
question
Oligopoly
answer
A market structure in which a few large firms dominate a market
question
Monopolistic Competition
answer
a market structure in which many companies sell products that are similar but not identical
question
Pure (Perfect) Competition
answer
When many businesses sell the same product and there is a plentiful supply of that good or service
question
Liability
answer
an entity formed for the purposes of carrying on commercial enterprise based on the
number of owners
number of owners
question
Market Structure
answer
how different industries are classified based on the amount or degree of competition
question
Barriers to market entry
answer
factors that can prevent or impede newcomers entering into a market like high start up
costs
costs
question
Product differentiation
answer
what makes a product or service stand out to your target market
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
