Term
|
Definition
| a philosophical or theoretical framework of which laws and theories can be applied |
|
|
Term
| Theory of the invisible hand |
|
Definition
| force that allows for producers and consumers to act in their self interest but results in a socially optimal market system |
|
|
Term
|
Definition
| Latin for "Let the people do". Also the ideal role of the government in our system |
|
|
Term
|
Definition
| simplifications of reality with only essential elements |
|
|
Term
|
Definition
| Latin for "Nothing else changes" |
|
|
Term
|
Definition
| Subjective type of economics using thoughts regarding "What should be" |
|
|
Term
|
Definition
| Objective and factual based type of economics regarding "What is" |
|
|
Term
|
Definition
|
|
Term
|
Definition
| If something is good, then more is always better |
|
|
Term
|
Definition
| More work to get the same return as time passes |
|
|
Term
|
Definition
| Term for when you are the best and have all the qualifications in a specified process |
|
|
Term
|
Definition
| A term for when you have the lowest opportunity cost in a specified process |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Ability and willingness to buy specific quantities of a good/service at given prices in a given time period (Nothing else changes) |
|
|
Term
|
Definition
| The quantity of a g/s demanded in a given time period increases as its price falls |
|
|
Term
|
Definition
| A data table detailing the quantity demanded and the price at the each quantity |
|
|
Term
|
Definition
| A downward slope curve representing the relationship between Quantity demanded and price |
|
|
Term
|
Definition
| Goods that can be alternates to each other (i.e., Pizza & Hamburgers) |
|
|
Term
|
Definition
| Goods that are most likely to be purchased following the purchase of another good (i.e., french fries & ketchup) |
|
|
Term
| Movement along a Demand curve |
|
Definition
| Change in a curve based on changes in: Price and Quantity Demanded (Nothing else changes) |
|
|
Term
|
Definition
| Change in a curve based on changes in: income, consumer tastes, substitutes, complements, information, market size etc… (Many changes) |
|
|
Term
| Movement along a supply curve |
|
Definition
| Change in a curve based on changes in: Quantity Supplied or Price (Nothing else Changes) |
|
|
Term
|
Definition
| Changes in a curve based on changes in: technology, environment, expectations, price of inputs etc… (Many Changes) |
|
|
Term
|
Definition
| The total quantities of a good that sellers are willing and able to sell at alternative prices in a given time period, while nothing else changes |
|
|
Term
|
Definition
| The quantity of a g/s supplied in a given time period increases as its price increases while nothing else changes |
|
|
Term
|
Definition
| A data table detailing the quantity supplied and the price at each quantity |
|
|
Term
|
Definition
| An upward slope curve representing the relationship between Quantity supplied and price |
|
|
Term
| Production Possibility Frontier |
|
Definition
| A graphical representation detailing the possibilities of quantities of efficient outputs of two products |
|
|
Term
|
Definition
| A point below the line of efficiency on the PPF that represents not using resources to their maximum potential |
|
|
Term
|
Definition
| A point above the line of efficiency that you can never achieve because you don't have enough resources |
|
|
Term
| Mercantilist Thought on International Trade |
|
Definition
| Belief that trade is a zero-sum game: Competition where there will be losers but inevitably also losers. And, that gold represents wealth |
|
|
Term
| Adam Smith's thoughts on International Trade |
|
Definition
| Thought that trade can be mutually beneficial. And, people should specialize based on absolute advantage |
|
|
Term
| David Ricardo's thoughts on International Trade |
|
Definition
| Thought that opportunity cost had to be emphasized. Specialize based on comparative advantage. This is the more widely accepted view now |
|
|
