Econ 101 All Terms

Limited natuer of society's resources

Rates of increasing prices and the devaluing of currency

Rates of decreasing prices

How much a country's economy is prodcuiong

How economic pie is split up

Assisting one group at the cost of harming another group

Lost of potential gain

Costs that have already been incured and should not be considered

Marginal benefits and costs weighed to make a decision

Additional benefits (incremental) when maing a decision

Additional costs. Cost connected in addition to goods/service

Comparing the benefits and costs of a decision and deciding ot make it or not

Something that induces a person to act

Byproduct from doing something

Positive byproduct from doing somethig

Negative byproduct from doing something

Allows people to specialize in an activity the individual does best

-Give up something that is produced in exchange for something else that cannot be produced or easily obtained

Free trade allows for diverse products that consumers can purchase

Market in which the government has complete and total control over all decisions made of the economy

Allows reources to be moved freely through an economy through prices or exchange of trade

There is no cordination between producers and consumers. The invisible hand guides resources through the economy

They are there for the protection of the people.

Ability of individual to own and exercise control over scarce resource

Ability for a individual to file with the government and it says that the individual ahs right over a patent and no one can copy the idea or design

When market is left on its own, it fails to allocate resources accordingly so the government has to step in to allocate it properly

Ability of single economic actor or small group of actors to have substantial influence on market prices

One or few firms have control over the market. This causes overpricing and inefficient reosource distribution

When a group or individual has complete and total control over a reosource and coordinates the price of that resource

GDP

Measures the average price consumers pay over time for goods

More moeny is being printed

More of a resource means it is less valuable. This applies to money

Oversees federal laws of labor in the US

Inflation is through the roof (Vlaue of the currency is so low)

1.) Increase/Decrease government spending (Change in government spending)
2.) Increase/Decrease taxes (Change in amount of taxes)
3.) Increase/Decrease money that is printed (Changes amount of money printed)

Flucuation of economic acitviity like production and unemployment

One change of a variable holds the other variables constant

Asks how does a market work.
Focus more on individual human behavior
Single market or industry (SD housing market)

Asks how does the economy work
Observation of collective human behavior on a large scale
Economies, multiple markets, government polcies, producer price index, business cycle

Producer price index always comes first.
This is because if the cost of a business is incrased, it results in them increasing cost of product/ service, which then affects consumer price index.

Government mandated maximum price
Anything above this price, legal trade cannot occur
Legal maxmium a good can be sold at

Govenrmetn mandated minimum price
Below this price, legal trade cannot occur
Legal minimum a good can be sold at

When the price ceiling is set above the market equilibrium

When the price ceiling is set below equilibrium

Governemnt enforced limit on how much can be charged for rent

When the price floor is set below the equilibrium price

When the price floor is set above teh equilibrium price

Binding Price Floor