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Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
Consumer Equilibrium
|
Situation in which you allocate all of your
available income in the way that maximizes you total utility |
|
Economic Growth
|
(1) the expansion of production possibilities and increased standard of living
(2) brought on by technological change and capital accumulation |
|
Total Revenue Test
|
(1) method of estimating the price elasticity of demand by (2) observing the change in total revenue that results from a price change
|
|
Complement
|
A good that is used in conjunction with another good.
(ex: peanut butter and jelly OR cars and gas) |
|
Slope Across an Arc
|
 Measures the slope of a curved line at two given points |
|
Offshore outsourcing
|
When a firm in the US buys finished goods, components
or services from firms in other countries. |
|
Efficiency
|
Using available resources to produce goods and services
at the lowest price possible and in quantities that give the greatest possible benefit |
|
Search Activity
|
Time spent looking for someone
with whom to do business with |
|
Normal Good
|
Good for which demand increases as income increases
|
|
Elasticity of Supply
|
Measures the responsiveness of the quantity supplied
to a change in the price of a good when all other influences on selling plans remain the same |
|
Outsourcing
|
When a firm in the US buys finished goods, components or services from other firms within the US or other countries.
|
|
Tariff
|
A TAX on a good that is imposed by the importing country
when an imported good crosses its international boundaries |
|
Black Market
|
An illegal market that runs alongside a legal market in
which a price ceiling or other restriction has been imposed |
|
Market
|
(1) any arrangement that enables buyers and sellers to get information and do business with each other
(2) coordinates decisions through price adjustments |
|
MicroEconomics
|
The study of choices that individuals and businesses
make, the way those choices interact in markets, and the influence of government |
