Term
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Definition
| fact that resources are insufficient to satisfy all decided uses there of |
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Term
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Definition
| resource inputs used to produce goods and services (land, labor, capital, entrep) |
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Term
| Production Possibilities Curve |
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| alternative combination of final goods and services that could be produced with all available resources and technology |
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| final goods produced for use in production of other goods (equipment, structures) |
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| called human capital; knowledge and skills possessed by the workforce |
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Term
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| assembling of resources to produce new and improved products and technologies |
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Term
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| the most desired services that are foregone in order to obtain something else |
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Term
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| Maximum output of a good from the resources used in production |
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Term
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| an increase in output (real gdp); an expansion in production possibilities |
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Term
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Definition
| the use of market prices and sales to signal desired output (of resource allocation) |
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Term
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| doctrin of "Leave it Alone" of not intervention by government in the market mechanism |
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| economy that uses both market signals and government directories to allocate goods and resources |
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| government intervention that fails to improve economic outcomes |
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Term
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| an imperfection in the market mechanism that prevents optimal outcomes |
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Term
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Definition
| total market value of all final goods and services produced with a nations borders in a time period |
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Term
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| total market value of all final goods and services produced in US owned companies everywhere in a given time period |
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Term
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| dollar value of GDP divided by total population |
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Term
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Definition
| expenditures on production of new plants, equipment, structures (capital) in a given time period; plus changes in business inventions |
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Definition
| payments to individuals for which no current goods or services are exchanged (social security, welfare, unemployment) |
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Term
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Definition
| goods and services sold to foreign buyers |
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Term
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Definition
| goods and services purchased from foreign sellers |
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Term
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| value of exports minus value of imports |
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Term
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| output per unit of input, such as output per labor hour |
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Term
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Definition
| production process that uses high ratio of capital to labor inputs |
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Term
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Definition
| cost (or benefits) of a market activity born by a 3rd party |
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Term
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Definition
| anyplace where factors of production (land, labor, capital) are bought and sold |
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Term
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| anyplace where finished goods and services are bought and sold |
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Term
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Definition
| the ability and willingness to sell (produce) specific quantity of a good at alternative prices |
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Term
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Definition
| ability and willingness to buy specific quantities of a good at alternative prices |
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Term
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Definition
| table showing quantity of a good the consumer is willing and able to buy at alternative prices |
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Term
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Definition
| curve describing quantities of a good the consumer is willing and able to buy at alternative prices |
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Term
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Definition
| quantity of a good demanded at a given time period increases as it's price falls |
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Term
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| goods that substitute for each other; when the price of good x rises the price of y does also |
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Term
| Shift in Demand (Change in Demand) |
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Definition
| change in the quantity demanded at any and every given price |
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Term
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Definition
| total quantity of a good or service people are willing and able to buy at alternative prices; sum of individual demands |
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Term
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Definition
| goods frequently consumed in combinations; where price of good x falls prices of y falls |
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Term
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Definition
| quantity of good supplied in a given time period increases as it's price increases |
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Term
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Definition
| good or service whos consumption by 1 person does not exclude consumption by others |
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Term
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Definition
| good or service whos consumption excludes consumption by others |
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Term
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Definition
| ability to alter the market price of a good or service |
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Term
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Definition
| (law of supply doesn't apply) industry in which one firm can achieve economics of scale over the entire range of market supply |
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Term
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Definition
| firm that produces the entire market supply of a particular good or service |
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Term
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Definition
| tax system in which tax rises as income rises |
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Term
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Definition
| tax system in which tax rates fall as income rises |
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