Econ

a situation where everyone cant get all they want of something

The study of how people do the best they can, or cope, in a world of scarcity

Incremental cost, the cost of a little bit more

Incramental benefit, the benefit of a little bit more

A place that brings buyers and sellers together

The tendency of firms and resource suppliers that seek to further their own self-interests in competitive markets to also promote the interests of society

The relationship between price and quantity demand

• Goods that can be used in place of each other. When the price of one falls, the demand for the other product falls vice versa.
• Coke and Pepsi are substitutes

• Goods that are used together. When the price of one falls, the demand for the other product increases.
• Video games and Xboxs are complements

The relationship between price and quantity supply

• Positive- "what is"
• Normative- "what should be"

Supply goes down

Supply goes up

The dollar value of new domestically produced, final goods/services over a period of time, such as a year

• Labor Force
• Not working
• Available for/looking for work

Unemployed people/Labor force

A general rise in prices over time

Product prices that remain in place (atleast for a while) even though supply or demand has changed

• Consumers tastes' (preferences)
• Number of buyers in the market
• Consumers' incomes
• Prices of related goods
• Consumer expectation

• Resource prices
• Technology
• Taxes and subsidies
• Prices of other goods
• Producer expectations
• Number of sellers in the market

To obtain one more thing, society forgoes the opportunity of getting the next best thing. That sacrifice is opportunity cost

A method of organizing an economy in which property resources are plublicly owned and government uses central economic planning to direct and coordinate economic activities

Economy in which the the private decisions of consumers, resource suppliers, and firms determine how resources are allocated

The price at which the quantity demanded and the quantity supplied are equal, there is neither a shortage or a surplus, and there is no tendency for price to rise or fall

The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific price

The amount by which the quantity demanded of a product exceeds the quantity supplied at a particular price

• Real GDP- measures the value of final goods/services produced within the country's borders
• Nominal GDP- totals the dollar value of all goods/services produced

Supply