Microeconomics Flashcards
Market with many buyers and sellers, so that no single
buyer or seller has a significant impact on price.
perfectly competitive market
Collection of buyers and sellers
that, through their actual or potential
interactions, determine the price of a product
or set of products.
market
also face limits in terms of the kinds of products that
they can produce, and the resources available to produce
them.
Firms
The social science which deals with the
production, distribution, and consumption of
limited goods and services to satisfy unlimited
needs and wants.
Economics
Qd = Qd(P)
Demand Curve
limitations–limited goods or services,
limited time, or limited abilities to
achieve the desired ends.
Scarcity
Percentage change in
quantity demanded of a good resulting from a 1-
percent increase in its price.
price elasticity of demand
The study of how society manages its scarce
resources.
Economics
Analysis examining questions of
what ought to be.
normative analysis
Two goods for which an increase in
the price of one leads to a decrease in the quantity
demanded of the other.
Complements
society has limited resources and
therefore cannot produce all the goods
and services people wish to have.
Scarcity
Branch of economics that deals with
the behavior of individual economic units—consumers,
firms, workers, and investors—as well as the markets that
these units comprise.
Microeconomics
Boundaries of a market, both
geographical and in terms of range of products
produced and sold within it.
extent of a market
Branch of economics that deals with
aggregate economic variables, such as the level and
growth rate of national output, interest rates,
unemployment, and inflation.
Macroeconomics
