14-15 Economics Set 2 (E-L) Flashcards
difference between the revenue realized by a producer and the opportunity cost of production
economic profit
the percentage change in quantity demanded or supplied as a result of a one percent change in price
elasticity
the amount of energy per unit volume
energy density
an individual who takes on the risk of attempting to create new products or service, establish new markets, or develop new methods of production
entrepreneur
a situation in which the forces in a system are in balance so that the situation is stable and unchanging
equilibrium
a period between a trough and a peak in economic activity
expansion
when the action of one person affects the well-being of someone else, but where neither party pays nor is paid for these effects
externality
goods or service that are purchased by the ultimate user
final goods
the institutions through which individuals with savings can supply these funds to persons or firms that wish to borrow money to purchase consumption goods or invest in physical capital
financial markets
cost of production that is independent of the quantity produced
fixed cost
when a company or individual acquires assets in a foreign country that the country or individual will manage directly
foreign direct investment
unemployment that results because it takes time for workers to search for the jobs that are best suited to their tastes and sills
frictional unemployment
benefits that both individuals or nations realize from mutually beneficial exchange
gains from trade
the market value of final goods and services produced in an economy during a specified period of time
gross domestic product (GDP)
case of a market with a small number of sellers, so that sellers have market power
imperfect competition
