Micro Economics 2
Terms
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- Microeconomics
- Branch of economics that deals with the behavior of individual economic units - consumers, firms, workers and investors - as well as the markets that these units comprise.
- Macroeconomics
- Branch of economics that deals with aggregate economic variables, such as the level and growth rate of national output, interest rates, unemployment and inflation.
- Positive Analysis
- Analysis describing relationship of cause and effect.
- Normative Analysis
- Analysis examining questions of what ought to be.
- Market
- Collection of buyers and sellers that, through their actual or potential interactions, determine the price of a product or set of products.
- Market Definition
- Determination of buyers, sellers, and range of products that should be included in a particular market.
- Arbitrage
- Practice of buying at a low price at one location and selling at a higher price in another.
- Perfectly Competitive Market
- Market with many buyers and sellers, so that no single buyer or seller has a significant impact on price.
- Market Price
- Price prevailing in a competitive market.
- Extent of a Market
- Boundaries of a market, both geographical and in terms of range of products produced and sold within it.
- Nominal Price
- Absolute price of a good, unadjusted for inflation.
- Real Price
- Price of a good relative to an aggregate measure of prices; price adjusted for inflation.
- Consumer Price Index
- Measure of the aggregate price level.