econ chapter 4, 5, 6 Flashcards Preview

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Flashcards in econ chapter 4, 5, 6 Deck (23):
1

any place where people come together to buy and sell goods or services

market

2

the willingness and ability of buyers to purchase different quantities of a good at different prices during a specific time period

demand

3

a law stating that as the price of a good increases, the quantity demanded of the good decreases, and that as the price of a good decreases, the quantity demanded of the good increases

law of demand

4

the number of units of a good purchased at a specific price

quantity demanded

5

a law stating that as a person consumes additional units of a good, eventually the utility gained from each additional unit of the good decreases

law of diminishing marginal utility

6

the numerical representation of the law of demand

demand schedule

7

the graphical representation of the law of demand

demand curve

8

a good for which the demand rises as income rises and falls as income falls

normal good

9

a good for which the demand falls as income rises and rises as income falls

inferior good

10

a good for which the demand remains unchanged as income rises or falls

neutral good

11

a similar good. The price of one and the demand for the other move in the same direction

substitute

12

a good that is consumed jointly with another good. the price of one and the demand for the other move in opposite directions

complement

13

the willingness and ability of sellers to produce and offer to sell different quantities of a good at different prices during a specific time period

supply

14

a law stating that as the price of a good increases, the quantity supplied of the good increases, and as the price of a good decreases, the quantity supplied of the good decreases

law of supply

15

a relationship between two factors in which the factors move in the same direction. For example, as one factor rises, the other rises, too

direct relationship

16

the number of units of a good produced and offered for sale at a specific price

quantity supplied

17

a numerical chart illustrating the law of supply

supply schedule

18

a graph that shows the amount of a good sellers are willing and bale to sell at various prices

supply curve

19

the body of skills and knowledge concerning the use of resources in production

technology

20

the ability to produce more output with a fixed amount of resources

advancement in technology

21

the average cost of a good. If 400,000 is spent to produce 100 cars, the average is 4,000

per-unit cost

22

a financial payment made by government for certain action

subsidy

23

a legal limit of the number of units a foreign produced good that can enter a country

quota