Econ2
Terms
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- direct relationship
- a relationship between two factors in which the factors move in the same direction
- Trade-off
- A situation in which more of one thing necessarily means less of something else.
- limited partner
- a partner who cannot participate in the management of the firm and who has imited liability
- Service
- An intangible item that gives a person utility or satifsfaction.
- Scarcity
- The condition in which our wants are greater than ressources available to satisfy those wants.
- nonexcludable public good
- A public good that individuals cannot be excluded (physicaly prohibited) from consuming.
- Intangible
- Not able to be felt by touch. For example, an economics lecture is intangible.
- inventory
- the stock of goods that a business or store has on hand
- Law of diminishing marginal utility
- A law stating that as a person consume s additional units of a good, eventually the utility gained from each additional unit of the good decreases.
- personal income tax
- a tax paid by on a person's income
- loss
- The amount of money by which total cost exeeds total revenue.
- Substitute
- A similar good. With substitutes, the price of one and the demand for the other move in the same direction.
- Global economy
- An economy in which economic actions taken anywhere in the world may affect an individual's standar of living.
- franchise
- a contract by which a firm lets a person or group use its name and sell its goods in exchange for certain payments being made and certain requirements being met.
- unit-elastic demand
- the type of demand that exists when the percentage change in quatity demanded is the same as the percentage change in price
- household
- An economic unit of one person or more that sells ressources and buys goods and services.
- Microeconomics
- The branch of economics that deals with human behavior and choices as they relate to relatively
- bylaw
- internal rules of a corporation
- total revenue
- The price of a good times the cumber of units of the good sold. Total revenue = price x number of units sold.
- Tangible
- Able to be felt by touch. For example, a book in tangible: you can touch feel it.
- Good
- A tangible item that gives a person utility or satisfaction. Sometimes a good is referred to as a product.
- unit-elastic demand
- the type of demand that exists when the persentage changes in quantity demanded in the same as the persentage change in price
- dividend
- a share of the profit of the corporation distributed to stockholders
- elastic supply
- the kind of supply that exists when the persentage change in quantity supplied is greater then the quantity change in price
- total cost
- The average cost (or expenses) of a good times the number of units of the good sold. Total cost = average cost x number of units sold.
- bond
- a statement of debt issued by a corporation
- supply curve
- a graph that shows the amount of a good sellers are willing and able to sell at various prices
- Law of demand
- A law stating that as the price of a good increases, the quantitty demanded of the good decreases and that as the price of a good decreases, the quantity demanded of the good increases.
- ethics
- The principles pf conduct, such as right and wrong . Morality and immorality, good and bad.
- equilibrium quantity
- the quantity of a good that is bought and sold in a market that is in equalibrium
- Law of diminishing marginal utility
- A law stating that as the price of a good increases, the quantitty demanded of the good decreases and that as the price of a good decreases, the quantity demanded of the good increases.
- face value
- the stated demination on paper money or coins
- Quantity demanded
- The number of units of a good purchased at a specific price.
- technology
- the body of skills and knowledge concerning the use of resources in production
- inferior good
- A good the demand for which rises a
- Neutral good
- A good the demand for which remains uncharged as income rises or falls.
- Inverse relationship
- A relationship whereby two variables move in opposite directions. When one variable rises, the other falls.
- Opportunity cost
- The most highly valued opportunity or alternative forfeited when a choice is made.
- Theory
- An explanation of how something works, designed to answer a question for which there is no obvious answer.
- inelastic demand
- the type of demand that exexists when the persent changes in quantity demand is less then the persentage change in price
- Demand schedule
- The numerical representation of the law of demand.
- Service
- An intangible item that gives a person utility or satisfaction.
- substitution
- a similar good
- stock
- a claim on the assests of a corporation that gives the purchaser a share of the ownership of the corporation
- public property
- Any good that is owned by the government.
- sole proprietorship
- a business that is owned by one indiviual who makes all business decisions
- rent
- The payment to the resource land.
- franchisee
- the person or group that buys a francise
- elasticity of demand
- the relationship between the persentage change in quantity demanded and persentage change in price
- private good
- A good of which one persons consumption takes away from another person's consumption. A car is a private good.
- asset
- in reference to the bank , a thing that the banks owns that has value.
- subsity
- a finacial payment made but the government for certain actions
- Law of demand
- 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.
- unlimited liability
- the legal responsibility of a sole proprietor of a business or of partners in a business to pay any money owed by the business
- cooperative
- a business that provides service to its members and is not run for profit
- quota
- a legal limit on the number of units of a foreign-produced good that can enter a country
- free entreprise
- An economic system in which individuals (not government) own most, if not all, the resources and control their use. Government plays a very small role in the econnomy.
- neutral good
- a good the demand for which remains unchanged as income rises or falls
- elasticity of supply
- the relationship between the persentage change in quantity supplied and persentage change in price
- elastic demand
- The type of demand that exists when the percentage change in quantity demanded is greater than the percentage change in price.
- franchiser
- and entity that offers and francise.
- Land
- All the natural resources found in nature. An acre of land, mineral deposit, and water in a stream are all considered land.
- circular flow of economic activity
- The economic relationships that exist between different economic groups on an economy.
- limited liablity
- a conditon in which an owner of a business firm can lose only the amount he or she has invested stockholder of the firm and who has limited liability
- private property
- Any good that is owned by an individual or a business.
- complement
- a good that is consumed jointly with each other
- supply
- the willingness and ability of sellers to produce and offer to sell a good or service
- Inferior good
- A good the demand for which falls as income rises and rises as income falls.
- surplus
- the condition in which the quantity supplied if greater then the quantity demanded
- socialism
- An economic system in which government controls and may own many of the resources. Government plays a major role in the economy.
- labor
- The physical and mental talents people contribute to the production of goods and services.
- free rider
- A person who receives the benefits of a good without paying for it.
- interest
- The payment to the resource capital.
- business firm
- an organization that uses resources to produce goods and service, which are sold to consumers, other firms,or the government
- equilibrium
- the condition of being at rest or balance
- Inverse relationship
- A relationship whereby two variables move in opposite directions. Wehn one variable rises, the other falls.
- Quantity demanded
- The number of units of a good purchased at a specific price.
- Normal good
- A good the demand for which rises as income rises and falls as income falls
- Normal good
- A good the demand for which rises as income rises and falls as income falls.
- ration device
- A means for deciding who gets what portion of the available resources and goods.
- quantity supplied
- the number of units of a good produced and offered for sale at specific price
- per-unit cost
- the average total cost of a good
- demand schedule
- The numerical representation of the law of demand.
- average cost
- Total cost divided by quantity. For example, if the total cost is $100 and the quantity is 10, then the average cost is $10. Average cost is often called per unit cost.
- profit
- The amount of money left over after all the costs of production have been paid. Profit exists when ever total revenue is greater than total cost.
- coupon rate
- a persent of the face value of a bond that is paid out regularly to the holder of the bond
- Good
- A tangible item that gives a person utility or satisfaction. Sometimes a good is referred to as a product.
- partnership
- a business that is owned by two or more co-owners called partners, who share any profits the business earns and are legal responsible for any debts incurred by the firm
- board of directors
- an important decisionmaking body in a corporation
- supply schedule
- the numerical chart the illistrates the law of supply
- Wants
- A thing that we desire to have
- Resources
- Anything that is used to produced goods or services. For example, a person's labor may be used to produce computers, tv sets, and much more, and there-fore a person's labor is a resource. There are four categories of resources: land, labor, labor, capital, and entrepreneurship.
- entrepreneur
- A person who has a special talent for searching out and taking advantage of new business opportunities, as well as for developing new products and new ways of doing things.
- unit-elastic demand
- The type of demand that exists when the percentage change in quantity demanded is the same as the percentage change in price.
- inelastic demand
- The type of demand that exists when the percentage change in quantity demanded is less than the percentage change in price.
- stockholder
- a person who owns shares of a corporation
- monitor
- the person in a business who corrdinates team production and reduces shrinking
- par value
- the stated demination on paper money or coins
- Economics
- The science that sudies the choices of people trying satisfy their wants in a world of scarcity.
- advantage in technology
- the ability to produce more output with in a fixed amount of resources
- Complement
- A good that is consumed jointly with another good. With complements, the price of one and the demand for the other move in opposite directions.
- equilibrium price
- the price at which a good is bought and sold in a market that is in equilibrium
- elastic demand
- the type of demand that exists when the percentage change in quatity demanded is greater than the percentage change in price
- corporation
- a legal entity that can conduct business in its own name in the same way that an individual does.
- law of supply
- a law stating that as the price of goods increase the quantity supplied of the good increases
- shrinking
- the behavior of a worker who is putting forth less then the agreed-to effort
- shortage
- the condition in which the quantity demanded is greater then the quantity supplied
- Macroeconimics
- The branch of economics that deals with human behavior and choices as they relate to the entire economy.
- excludable public good
- A public good that individuals can be excluded (physicaly prohibited) from consuming.
- entrepreneurship
- The special talent that some poeple have for searching out and talking advantage of new business opportunities and for developing new products and new ways of doing things.
- public good
- A good of which one persons consumption does not take away from another person's consumption. National defense is a public good.
- wages
- The payment to the resource labor.
- corprate income tax
- a tax paid on a corpration's profits
- captital
- Produced goods that can be used as resoursces for further production. Such things as factories, machines, and famr tractors are capital.
- economic plan
- A government program specifying economic acticities, such as what goods are to be produced and what prices will be charged.
- residual claimant
- a person who shares in the profits of a business
- general partner
- a partner who is responsible for the management of the firm and who has unlimited liablity
- elasticity of demand
- The relationship between the percentage change in quantity demanded and the percentage change in price.
- profit
- The amount of money left over after all the costs of production have been paid. Also, the payment to the resource entrepreneurship. Profit exist whenever total revenue is greater than total cost.
- contract
- An agreement between two or more people to do something.
- economic system
- They way in which a society decides what goods to produce, how to produce them, and for whom goods will be produced.