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🌐 Economics 🌐 > Unit 2 Vocabulary > Flashcards

Unit 2 Vocabulary Flashcards

(82 cards)

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1
Q

Market

A

Mechanic where buyers and sellers meet to voluntarily trade good & services

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2
Q

Voluntary Exchange

A

Buyers & a Sellers freely & willingly engaging in market transactions.(buying goods & services)

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3
Q

Good

A

Tangible. You buy it.

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4
Q

Service

A

Something done for you. (Intangible)

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5
Q

Competition

A

Struggle among to attract consumers.

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6
Q

Cost

A

What it takes to make it.

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7
Q

Price

A

Monetary value of a product

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8
Q

Free Enterprise

A

Privately owned businesses freely operate for a profit

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9
Q

Private property rights

A

Core basis of capitalism.

Individuals own & control their possessions.

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10
Q

Profit

A

Difference between the revenue and income from sales in opportunity.

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11
Q

Profit Motive

A

Driven force that makes people and organizations to better their materials.

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12
Q

Entrepreneur

A

Risking taking individuals that introduce new products or services.

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13
Q

Consumer sovereignty

A

Role of the Consumers determined types of good and services as ruler of the market.

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14
Q

Mixed Economy

A

Combination of market, command, and traditional economies.

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15
Q

Modified free enterprise economy

A

People carry on their economic affairs with some gov’t intervention.

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16
Q

Inflation

A

Sustained rise in price general levels of good & services.

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17
Q

Demand

A

Mixture of quantities someone will be willing to buy over ranges.

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18
Q

Microeconomics

A

Branch of economics theory that deals behavior and decision making by small units like individuals.

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19
Q

Demand schedule

A

Listing showing the price and qty. demanded at all possible prices to succeed in markets.

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20
Q

Income

A

Something that motivates.

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21
Q

Demand curve

A

Graph showing qty. demanded at each and possible price.

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22
Q

Law of Demand

A

Rule saying that more will be demanded lower prices & less at higher prices.

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23
Q

Market demand curve

A

Demand curve that shows qty. demanded by everyone willing to buy products at all possible prices.

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24
Q

Marginal Utility

A

Increasing satisfaction from many products.

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25
Diminishing marginal utility
Decreasing satisfaction in additional products purchased.
26
Change in Qty. Demanded
Only price effects the demand curve.
27
Income Effect
When shifts up or down, that changes your demand & supply curve.
28
Substitution Effect
If something is cheaper people will buy it. Ex- Starbucks Scones $ 12.00 Dunkin' Dougnuts- $5.00
29
Change in demand
When something other than price changes the graph. Like: Income, Substitution, and Complementary Goods.
30
Substitutes
Replacing another item.
31
Complements
Is a like "bread and butter to another product" | Ex- Ketchup & Mustard.
32
Elasticity
How much you can afford to replace.
33
Demand elasticity
Price shifts a change in demand.
34
Elastic
Change in price to qty. supplied or qty. demanded.
35
Inelastic
Price ⚖️is unequal to qty.supplied.
36
Unit elastic
Price and qty. supplied are equal.
37
Supply
How much a seller is able & willing to sell at different possible prices.
38
Law of Supply
Principle that products will be offered on sales at higher prices.
39
Supply schedule
Products offered for sale on a table at each possible prices.
40
Supply curve
Showing the supply quantity of the sellers.
41
Market supply curve
Supply curve that show the quantities offered at various prices by firms that the same product in market.
42
Qty. Supplied
Specific amount of products offered at possible prices.
43
Change in Qty. supplied
Only price affects the supply curve.
44
Subsidy
Gov't bonuses go protect economic activity.
45
Supply elasticity
Response to a change in price in Qty. supplied.
46
Product function
Shows how a single variable effects the total input.
47
Short run
Production period is short that only labor can be changed(usually).
48
Long run
Production long enough to change variable and fixed inputs used in production.
49
Total product
Total output or production at a firm.
50
Marginal product
Extra product due an addition of one more unit of input.
51
Stages of production
Phases of production that increase, decrease, and have negative returns.
52
Diminishing returns
Stage of production where output decreases at an increasing rate as more units are added.
53
Fixed costs
Costs of production that don't change output when it changes.
54
Overhead
Vague category of fixed costs that includes: interest,rent, taxes, and executive salaries.
55
Variable cost
Production cost that varies as input changes. | Like: labor, energy, & raw materials
56
Total cost
Total cost + fixed cost with all costs associated with production.
57
Marginal cost
Extra cost of producing one additional unit of product.
58
Average revenue
Average price that every # of output sells for.
59
Total revenue
Total amount earned by a firm from the sale of products with average price of a good sold.
60
Marginal revenue
Extra revenue $ from the sale of an additional unit of output.
61
Profit-maximizing quantity of output
Level of production where Marginal cost = Marginal revenue.
62
Break-even point
Production level where total cost = total revenue. If the firm needs to recover costs.
63
e-commerce
Online markets.
64
Price
Monetary value of a product.
65
Rationing
Distribute good & prices evenly without prices.
66
Equilibrium price
Qty.Supplied = Qty.Demanded | Clears the market.
67
Equilibrium quantity
Qty. Supplied = Qty. Demanded. | At equilibrium price.
68
Surplus
Qty.Supplied > Qty.Demanded at a given price.
69
Shortage
Qty.Supplied < Qty.Demanded
70
Price ceiling
Highest legal price for a product. "The cap". Creates a shortage.
71
Price floor
Lowest legal price for a product. | Creates a surplus.
72
Target price
Price floor set by the gov't to stabilize farm products.
73
Nonrecourse loan
Loan with no penalty. | Don't have repay.
74
Market structure
``` Market classification of: # and firms type of product and competition. ```
75
Pure competition
Essential market structure that requires 3 things: Large #'s Identical products Freedom to exit.
76
Industry
Supply side of the market.
77
Perfect competition
Essential market structure characterized by: | Large #'s well-informed independent & dependent buyers.
78
Monopolistic competition
Market structure that has all the conditions of pure competition. ( Except for identical products ).
79
Product differentiation
Real or imagined differences between competing products in the same industry.
80
Nonprice competition
Competition based on quality, appearance, and design.
81
Oligopoly
Market structures where few large sellers dominate and have the ability to affect prices in the industry.
82
Collusion
illegal agreement among processes to fix prices, limit output, or divide markets.

🌐 Economics 🌐 (2 decks)

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