Enhance Your Learning with Economics - Anchoring Flash Cards for quick understanding
The fundamental economic concept that describes the relationship between the quantity of a product or service that producers are willing to provide and the quantity that consumers are willing to purchase at a given price.
The state in which the quantity of a product or service demanded by consumers is equal to the quantity supplied by producers, resulting in a stable price.
A measure of the responsiveness of the quantity demanded of a product or service to changes in its price. It indicates how sensitive consumers are to price changes.
A graphical representation of the maximum combination of goods and services that an economy can produce given its resources and technology.
The value of the next best alternative that must be forgone in order to choose one option over another. It represents the trade-off of choosing one thing at the expense of another.
The additional satisfaction or benefit that a consumer derives from consuming one more unit of a good or service.
The total expenses incurred by a firm in producing a particular quantity of goods or services, including both explicit costs (such as wages and materials) and implicit costs (such as opportunity costs).
A market structure characterized by a large number of buyers and sellers, homogeneous products, perfect information, and ease of entry and exit. No single buyer or seller has control over the market price.
A market structure characterized by a single seller or producer of a unique product or service, with no close substitutes. The monopolist has significant control over the market price.
A market structure characterized by a small number of large firms that dominate the market. Each firm's actions can have a significant impact on the market price and the behavior of other firms.
A market structure characterized by a large number of sellers offering differentiated products. Each firm has some control over the market price due to product differentiation.
The total value of all final goods and services produced within a country's borders in a given period of time, usually a year. It is a measure of a country's economic output.
A sustained increase in the general price level of goods and services in an economy over a period of time. It erodes the purchasing power of money.
The state of being without a job, actively seeking employment, and available to work. It is a measure of the number of people in the labor force who are not employed.
The use of government spending and taxation to influence the economy. It aims to stabilize economic growth, control inflation, and reduce unemployment.
The use of interest rates, money supply, and other monetary tools by a central bank to control inflation, stabilize prices, and promote economic growth.
The exchange of goods and services between countries. It allows countries to specialize in the production of goods and services in which they have a comparative advantage.
The rate at which one currency can be exchanged for another. It determines the value of a country's currency in relation to other currencies.
A record of all economic transactions between the residents of a country and the rest of the world over a specific period of time. It includes the trade balance, capital flows, and financial transfers.
An increase in the production of goods and services in an economy over time. It is usually measured by the growth rate of real GDP.
The unequal distribution of income among individuals or households in an economy. It is often measured using indicators such as the Gini coefficient.
The state of being extremely poor, with insufficient income or resources to meet basic needs. It is often measured using poverty thresholds or poverty lines.
The costs or benefits that are not reflected in the market price of a good or service and are incurred by individuals or society as a whole. They can be positive or negative.
Goods or services that are non-excludable and non-rivalrous, meaning that they are available to all individuals and one person's consumption does not reduce the availability for others.
A situation in which the allocation of goods and services by a free market is not efficient, leading to a net loss of economic welfare. It can be caused by externalities, market power, or imperfect information.
Statistics or data that provide information about the overall health and performance of an economy. Examples include GDP, inflation rate, unemployment rate, and consumer price index.
The way in which a society organizes the production, distribution, and consumption of goods and services. Examples include market economies, command economies, and mixed economies.
The process by which a nation improves the economic, political, and social well-being of its people. It involves increasing productivity, reducing poverty, and improving living standards.
The process of combining economic policies and systems of different countries to promote regional cooperation and reduce trade barriers. Examples include free trade agreements and economic unions.
The process of making predictions or estimates about future economic conditions based on historical data, statistical models, and expert judgment. It helps businesses and policymakers make informed decisions.
Fluctuations in economic activity characterized by periods of expansion (growth) and contraction (recession). They are caused by changes in aggregate demand and supply.
The purchase of capital goods, such as machinery, equipment, or buildings, that are used to produce goods and services. It is a key driver of economic growth.
The portion of income that is not spent on consumption and is instead set aside for future use. It can be used for investment or as a precautionary measure.
The cost of borrowing money or the return on investment. They are determined by the supply and demand for credit and play a crucial role in influencing economic activity.
The levying of compulsory charges or fees by a government on individuals and businesses to fund public expenditures. It is a key tool for revenue generation and economic policy.
The use of public funds by the government to finance its activities and provide public goods and services. It can have a significant impact on aggregate demand and economic growth.
A situation in which government expenditures exceed revenues in a given period of time. It leads to an increase in the national debt and can have implications for the economy.
The total amount of money that a government owes to its creditors, including individuals, businesses, and other countries. It is a measure of a country's accumulated budget deficits.
The optimal allocation of resources to maximize the production of goods and services. It occurs when resources are used in the most productive and least wasteful manner.
The fairness or justice in the distribution of economic resources and opportunities among individuals or groups in a society. It is often associated with concepts of equality and social justice.
The absence of excessive fluctuations in economic activity, such as inflation, unemployment, and business cycles. It is a desirable goal for policymakers to ensure a smooth functioning of the economy.
The ability of an economy to maintain long-term economic growth and development without depleting its natural resources or causing significant harm to the environment.
The actions and measures taken by a government or central bank to influence the behavior of the economy. It includes fiscal policy, monetary policy, and other regulatory measures.
The systematic study and evaluation of economic phenomena, such as markets, industries, and policies, using economic theories, models, and empirical data. It helps in understanding and predicting economic behavior.