14-15 Economics Set 1 (A-D) Flashcards
a graphical depiction of the relationshp between the level of desired expenditures in an economy and the price level
aggregate demand curve
graphical depiction of the relationship between the quantity of goods and services firms wish to supply and the price level
aggregate supply curve
in the U. S., a category of laws that theoretically prevent the formation of monopolies, restraint of competition, and abuse of market power
antitrust
conditions that prevent firms from freely entering or exiting a market
barriers to entry
demand for electricity that is more or less constant - as opposed to peak loads, which come at high-usage times (such as when people come home from work in the evening and turn on lights and other loads); generation sources are often more suited to serve one or the other
baseload
fluctuations in aggregate economic activity
business cycle
a group of firms that collude in a given market to restrain competition, often making quota arrangements among themselves
cartel
the proposition that if private parties can bargain without cost over the allocation of resources, then they can solve the problem of externalities on their own
Coase Theorem
a type of resource whose physical characteristics make it difficult to exclude potential users or exploiters
common pool
ability to produce a good or service at a lower opportunity cost than other producers
comparative advantage
a market with many buyers and sellers trading a homogenous good or service in which each buyer and seller is a price taker
competitive market
an index constructed by comparing the cost of purchasing a fixed basket of goods at different times
consumer price index (CPI)
difference between the amount that a buyer would be willing to pay for a good or service and the price actually paid
consumer surplus
unemployment caused by deviations of output from its potential level
cyclical unemployment
the reduction in total surplus that results from a market distortion such as a tax
deadweight loss
