private property: And good that is owned by an individuawl or a business.
puplic property: Any good that is owned by the government.
household: An economic unit of one person or more that sells resources and buys goods and services.
circular flow of economic activity: The economics relationships that exist between different economic groups in an economy.
profit: The amount of money left over after all the costs of production have been paid. Profit exists whenever total revenue is greater than total cost.
loss: The amount of money by which total cost exceeds total revenue.
ethics: The principles of conduct, such as right and wrong, morality and immorality, good and bad.
entrepreneur: A person who has a special talent for searching out and taking advantage of new business opportunities.
contract: An agreement between two or more people to do something.
private good: A good of which one person's consumption takes away from another person's consumption.
public good: A good of which one person's consumptions does not take away from another person's consumption.
excludable public good: A public good that individuals can be excluded (physically prohibited) from consuming.
nonexcludable public good: A public good that individuals cannot be excluded (physically prohibited) from consuming.
free rider: A person who receives the benefits of a good without paying for it.
negative externality: An adverse side effect of an act that is felt by others.
positive externality: A beneficial side effect of an action that is felt by others.
Supply: The willingess and ability of sellers to produce and offer to sell different quantities of a good at different prices during a specific time period.
Law of Supply: 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.
Direct Relationship: A relationship between two factos in which the factors move in the same direction. For example, as one factor rises, the other rises, too.
Quantity Supplied: The number of units of a good priduced and offered for sale at a specific price.
Supply Schedule: A numerical chart illustrating the law of supply.
Supply Curve: A graph that shows the amount of a good sellers are willing and able to sell at various prices.
Technology: The body of skills and knowledge concerning the use of resourcese in production.
Advancement in Technology: The ability to produce more output with a fixed amount of resources.
Per-Unit Cost: The average cost of a good. For example, if $400,000 is spent to produce 100 cars, the average, or per-unit, cost is $4,000.
Subsidy: A financial payment made by government for certain actions.
Quota: A legal limit on the number of units of a foreign-produced good (import) that can enter a country.
Elasticity of Supply: The rlationship between the percentage change in quantity supplied and the percentage change in price.
Elastic Supply: The kind of supply that exists when the percentage change in quantity supplied is greater than the percentage change in price.
Inelastic Supply: The kind of supply that exists when the percentage change in quantity supplied is less than the percentage change in price.
Surplus: The condition in which the quantity supplied of a good is greater than the quantity demanded. Surpluses occur only at prices above equilibirum price.
Shortage: The condition in which the quantity demanded of a good is greater than the quantity supplied. Shortages occur only at prices below equilibrium price.
Equilibrium: In a market the point at which the quantity of a good that buyers are willing and able to buy is equal to the quantity that sellers are willing and able to produce and offer for sale (quantity demanded equals quantity supplied).
Equilibrium Quantity: The quantity of a good that is bought and sold in a market that is in equilibrium.
Equilibrium Price: The price at which a good is bought and sold in a market that is in equilibrium.
Inventory: The stock of goods that a business or store has on hand.
Price Ceiling: A legislated price - set lower than the equilibrium price - above which buyers and sellers can not legally buy and sell a good.
Price Floor: A legislated price - set above the equilibrium price - below which buyers and seller cannot legally buy and sell a good.
puplic property: Any good that is owned by the government.
household: An economic unit of one person or more that sells resources and buys goods and services.
circular flow of economic activity: The economics relationships that exist between different economic groups in an economy.
profit: The amount of money left over after all the costs of production have been paid. Profit exists whenever total revenue is greater than total cost.
loss: The amount of money by which total cost exceeds total revenue.
ethics: The principles of conduct, such as right and wrong, morality and immorality, good and bad.
entrepreneur: A person who has a special talent for searching out and taking advantage of new business opportunities.
contract: An agreement between two or more people to do something.
private good: A good of which one person's consumption takes away from another person's consumption.
public good: A good of which one person's consumptions does not take away from another person's consumption.
excludable public good: A public good that individuals can be excluded (physically prohibited) from consuming.
nonexcludable public good: A public good that individuals cannot be excluded (physically prohibited) from consuming.
free rider: A person who receives the benefits of a good without paying for it.
negative externality: An adverse side effect of an act that is felt by others.
positive externality: A beneficial side effect of an action that is felt by others.
Supply: The willingess and ability of sellers to produce and offer to sell different quantities of a good at different prices during a specific time period.
Law of Supply: 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.
Direct Relationship: A relationship between two factos in which the factors move in the same direction. For example, as one factor rises, the other rises, too.
Quantity Supplied: The number of units of a good priduced and offered for sale at a specific price.
Supply Schedule: A numerical chart illustrating the law of supply.
Supply Curve: A graph that shows the amount of a good sellers are willing and able to sell at various prices.
Technology: The body of skills and knowledge concerning the use of resourcese in production.
Advancement in Technology: The ability to produce more output with a fixed amount of resources.
Per-Unit Cost: The average cost of a good. For example, if $400,000 is spent to produce 100 cars, the average, or per-unit, cost is $4,000.
Subsidy: A financial payment made by government for certain actions.
Quota: A legal limit on the number of units of a foreign-produced good (import) that can enter a country.
Elasticity of Supply: The rlationship between the percentage change in quantity supplied and the percentage change in price.
Elastic Supply: The kind of supply that exists when the percentage change in quantity supplied is greater than the percentage change in price.
Inelastic Supply: The kind of supply that exists when the percentage change in quantity supplied is less than the percentage change in price.
Surplus: The condition in which the quantity supplied of a good is greater than the quantity demanded. Surpluses occur only at prices above equilibirum price.
Shortage: The condition in which the quantity demanded of a good is greater than the quantity supplied. Shortages occur only at prices below equilibrium price.
Equilibrium: In a market the point at which the quantity of a good that buyers are willing and able to buy is equal to the quantity that sellers are willing and able to produce and offer for sale (quantity demanded equals quantity supplied).
Equilibrium Quantity: The quantity of a good that is bought and sold in a market that is in equilibrium.
Equilibrium Price: The price at which a good is bought and sold in a market that is in equilibrium.
Inventory: The stock of goods that a business or store has on hand.
Price Ceiling: A legislated price - set lower than the equilibrium price - above which buyers and sellers can not legally buy and sell a good.
Price Floor: A legislated price - set above the equilibrium price - below which buyers and seller cannot legally buy and sell a good.
