Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
28 Cards in this Set
- Front
- Back
Market
|
a place or service that enables buyers and sellers to exchange goods and services
|
|
barter
|
the direct exchange of goods and services without the use of money
|
|
Double coincidence of wants
|
the situation that exists when A has what B wants and Bhas what A wants
|
|
transaction costs
|
the costs involved in making an exchange
|
|
relative price
|
the price of one good expressed in terms o the price of another good
|
|
quantity demanded
|
the amount of a product that people are willing and able to purchase at a specific price
|
|
law of demand
|
the quantity of well-defined good or service that people are willing and able to purchase durning a particular period of time.
|
|
Determinats of demand
|
factors other than the price of the good that influence demand: income, tastes, prices of related goods and services, expectations, # of buyers
|
|
demand shedule
|
a table or list of the prices and the corresponding quantities demanded of a particular good or service
|
|
demand curve
|
a graph of a demand schedule that measures price on the vertical axis and quantity demanded on the horizontal axis
|
|
normal goods
|
goods for which demand incteases as income increases
|
|
inferior goods
|
goods for which demand decteases as income increases
|
|
Substitute goods
|
goods that can be used in place of each other; as the price of one rises, the demand for the other rises
|
|
complementary goods
|
goods that are used together; as the price or one rises, the demand for the other falls
|
|
Supply
|
amount of a good or service that producers are willing and able to offer for sale at each possible price during a period of time, everything held const.
|
|
quantity supplied
|
the amount sellers are willing and able to offer at a given price during a particular period of time, everything else held constant
|
|
law of supply
|
quantity of well-defined good or service that producers are willing and able to offer for sale during a particular period of time
|
|
determinants of supply
|
factors other than the price of the good that influence supply: price of resources, technology production, expectations of producers, # of producers, price of related goods and services
|
|
supply schedule
|
table or list of prices and corresponding quantities supplied of a particular good or service
|
|
supply curve
|
graph of a supply schedule that measures price on the vertical axis and quantity supplied on the horizontal axis
|
|
productivity
|
the quantity of output produced per unit of resource
|
|
equilibrium
|
the price and quantity at which quantity demanded and quantity supplied are equal
|
|
disequilibrium
|
a point at which quantity demanded and quantity supplied are not equal at a particular price
|
|
surplus
|
a quantity supplied that is larger than the quantity demanded at a given price; it occurs whenever the price is greater than the equilibrium price
|
|
shortage
|
a quantity supplied that is smaller than the quantity demanded at a given price; it occurs whenever the price is less than the equilibrium price
|
|
exchange rate
|
the rate at which monies of different countries are exchanged
|
|
price floor
|
a situation in which the price is not allowed to decease below a certain level
|
|
price ceiling
|
a situation in which the price is not allowed ot rise above a certain level
|