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Definitions |
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Anything which individuals receive utility or satisfaction
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Good
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Price times quantity sold
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Total revenue
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All natural resources, such as minerals, forests, water and unimproved land.
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Land
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A condition in which quantities demanded is greater than quantity supplied. Occur only at prices below the equilibrium price.
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Shortage
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The price of a good.
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Own Price
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demand equals Ed < 1
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Inelastic demand
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The satisfaction one receives from a good
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utility
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The sciences of scarcity, the science of how individuals and society deal with wants greater than the limited resources.
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Economics.
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The people who have talent for organizing land, labor, and capital to produce goods, seek new business or new ways.
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Entrepreneurship.
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The numerical tabulation of the quantity supplied of a good at different prices.
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Supply schedule
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If the number of sellers increases, the supply curve will shift to the ________.
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Right
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The greater the percentage of one's budget that goes to the purchase of a good, the higher the price elasticity of demand, true or false?
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True
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Demand equals Ed = 1
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Unit elastic demand
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If the percentage change in quantity demanded of a good is greater than the percentage change in income, Ey >1, then it is income ________.
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Elastic
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The benefits connected to consuming an additional unit of a good or undertaking one more unit of activity.
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Marginal benefits
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The condition in which our wants are greater than the limited resources available to satisfy those wants.
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scarcity
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If two variables change in opposite ways they are:
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inversely related
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Increase in taxes on production of a good causes the supply curve to shift to the _________.
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Left
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Subsidies of a good produced cause the supply curve to shift to the __________.
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Right
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The price at which quantity demanded of the good equals the quantity supplied.
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Equilibrium price
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The graphical representation of the law of supply.
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Upward-sloping supply curve
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The more substitutes for a good, the higher the price elasticity of demand, true or false?
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true
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Demand equal Ed = infinite large
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Perfectly elastic demand
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If the change of one variable does not affect another variable they are considerred:
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Independent
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A price at which the quantity demanded does not equal quantity supplied.
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Disequilibrium price
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A means for deciding who gets what of available resources and goods.
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Rationing Device
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A good the demand of which falls as income rises.
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Inferior good
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If good X is expected to rise in the near future, the demand curve shifts to the _________.
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Right
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If price is up or down and total revenue remains the same then demand is ____________.
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unit elactic
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As the price of a good rises, the quantity supplied of the good rises, as the price falls, the quantity supplied falls.
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Law of supply
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