Understand the law of supply
Tendency of suppliers to offer more of a good at a higher price
Understand the law of demand
Consumers react to an increase in a good’s price by consuming less of that good
What is a demand schedule?
A table that lists the quantity of a good a person will buy at each price
What is a demand curve?
A graphic of a demand schedule
What is an Inferior good?
A good that consumers demand less of when their income increases
What is Elasticity of Demand?
A measure of how consumers react to a change in price
What is Demand?
The desire to own something and the ability to pay for it
What is a substitute good?
A good consumers replace from the react of an increases in another good’s price
What is a complementary good?
Two goods that are bought and used together
What is a normal good?
A good that consumers demand more of when their income rises?
What is Inelastic Demand?
A demand that is not going to shift
What is an elastic good?
Describes demand that is very sensitive to a change in price, you can live without
What is an inelastic good?
Describes demand that is not very sensitive to a change in price. You can’t live without it
What is quantity supplied?
The amount a supplier is willing and able to supply at a certain price
What is quantity demanded?
The total amount of a good or service that consumers demand over a given interval of time
What is Diminishing Marginal Utility?
A level of production in which the marginal product of labor decreases as the number of workers increases
What is the law of supply?
Tendency of suppliers to offer more of a good at a higher price
What is a supply schedule?
A chart that lists how much of a good a supplier will offer at different prices
What is a supply curve?
A graph of the quantity supplied of a good by all suppliers at different prices
What is elasticity of supply?
A measure of the way quantity supplied reacts to a change in price
What is input?
Any resources used to create goods and services
What is output?
The quantity and quality of goods or services produced in a given time period
What is a shortage?
excess demand is a situation in which the demand for a product or service exceeds its supply in a market
What is a surplus?
An amount of something left over when requirements have been met; an excess of production or supply over demand.
What is excise tax?
Any duty on manufactured goods that is normally levied now of manufacture for internal consumption rather than at sale
What is equilibrium?
The point at which quanity demanded and quantity supplied are equal
What is market equilibrium?
Supply and demand will be equal at only one point and one quantity
What is price ceiling?
Maximum price that can be legally charged for a good
What is price floor?
What is price floor?
What is productivity
How much output can be produced with a given set of inputs
What is variable cost?
Costs that change as the quantity of the good or service that a business produces changes
What is fixed cost?
A cost that does not change no matter how much of a good is produced
What is minimum wage?
Minimum price that an employer can pay a worker for an hour of labor
What is total cost?
Fixed cost plus variable costs
What is marginal cost?
The cost of producing one more unit of a good
What is profit maximizing output?
Producing that quantity of output where marginal revenue equals marginal cost
What is the labor market?
the availability of employment and labor, in terms of supply and demand.
What are wage price controls?
Setting of government guidelines for limiting increases in wages and prices
What is collective bargaining? N
What is collective bargaining?
Negotiation of wages and other conditions of employment by an organized body of employees.
What is right to work?
State laws that prohibit union security agreements between employers and labor unions which require employees who are not union members to contribute to the costs of union representation
What is outsourcing?
The act of a company relying on an external provider for a business process that otherwise would be internal.
What is a boycott?
An act of nonviolent, voluntary abstention from a product, person, organization, or country as an expression of protest
What is a labor union?
An organization of workers whose purpose is to maintain or improve the conditions of their employment
What is a strike?
What is a strike