econ chapter 4, 5, 6 Flashcards

1
Q

any place where people come together to buy and sell goods or services

A

market

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2
Q

the willingness and ability of buyers to purchase different quantities of a good at different prices during a specific time period

A

demand

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3
Q

a law stating that as the price of a good increases, the quantity demanded of the good decreases, and that as the price of a good decreases, the quantity demanded of the good increases

A

law of demand

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4
Q

the number of units of a good purchased at a specific price

A

quantity demanded

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5
Q

a law stating that as a person consumes additional units of a good, eventually the utility gained from each additional unit of the good decreases

A

law of diminishing marginal utility

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6
Q

the numerical representation of the law of demand

A

demand schedule

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7
Q

the graphical representation of the law of demand

A

demand curve

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8
Q

a good for which the demand rises as income rises and falls as income falls

A

normal good

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9
Q

a good for which the demand falls as income rises and rises as income falls

A

inferior good

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10
Q

a good for which the demand remains unchanged as income rises or falls

A

neutral good

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11
Q

a similar good. The price of one and the demand for the other move in the same direction

A

substitute

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12
Q

a good that is consumed jointly with another good. the price of one and the demand for the other move in opposite directions

A

complement

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13
Q

the willingness and ability of sellers to produce and offer to sell different quantities of a good at different prices during a specific time period

A

supply

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14
Q

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

A

law of supply

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15
Q

a relationship between two factors in which the factors move in the same direction. For example, as one factor rises, the other rises, too

A

direct relationship

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16
Q

the number of units of a good produced and offered for sale at a specific price

A

quantity supplied

17
Q

a numerical chart illustrating the law of supply

A

supply schedule

18
Q

a graph that shows the amount of a good sellers are willing and bale to sell at various prices

A

supply curve

19
Q

the body of skills and knowledge concerning the use of resources in production

A

technology

20
Q

the ability to produce more output with a fixed amount of resources

A

advancement in technology

21
Q

the average cost of a good. If 400,000 is spent to produce 100 cars, the average is 4,000

A

per-unit cost

22
Q

a financial payment made by government for certain action

A

subsidy

23
Q

a legal limit of the number of units a foreign produced good that can enter a country

A

quota