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Definition
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Term
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Definition
| Omit many details to allow us to see what's truly important |
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Definition
a small incremental adjustment
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Term
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Definition
| What you give up to obtain an item |
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Definition
| When price rises, Qd falls |
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Term
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Definition
| the study of individual decision makers |
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Definition
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Term
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Definition
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Term
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Definition
A group of demanders and suppliers of a particular good or service
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Definition
| A tax on an imported good |
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Definition
| The sum of all individual demands |
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Definition
| Family, consumer, and customer |
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Definition
| follows the definition of scarcity |
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Term
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Definition
| comes from the Greek word for "one who manages a household" |
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Definition
| based on opportunity cost |
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Definition
| an increase in economic growth |
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Term
| When a surplus exists in a market |
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Definition
| the actual price is above equilibrium price |
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Definition
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Definition
| based on comparative advantage |
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Definition
| forces that make market economies work |
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Definition
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Term
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Definition
| any point inside the curve |
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Definition
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Term
| Most efficient points on the PPF |
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Definition
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Term
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Definition
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Term
| flow of factors of production |
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Definition
households -> MFP -> firms
- s.
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Term
| Spending by households flow to firms by |
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Definition
| purchase of goods and services |
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Term
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Definition
income payments flow from firms to households, and sales revenue flows from households to firms
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Term
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Definition
| used to produce goods and services |
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Term
| households and societies face many decisions because |
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Definition
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Term
| People make decisions at the margin by comparing |
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Definition
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Term
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Definition
| understand that people respond to incentives |
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Term
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Definition
| society getting the most it can from scarce resources |
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