Enhance Your Learning with Economics Flash Cards for quick understanding
The study of how individuals, businesses, and governments make choices about allocating resources to satisfy unlimited wants.
The quantity of a good or service that producers are willing and able to offer for sale at various prices.
The quantity of a good or service that consumers are willing and able to buy at various prices.
The point at which the quantity demanded equals the quantity supplied, resulting in a stable price and quantity.
The difference between the maximum price a consumer is willing to pay for a good and the actual price they pay.
The difference between the minimum price a producer is willing to accept for a good and the actual price they receive.
Consumer surplus can be calculated by finding the area below the demand curve and above the market price.
Producer surplus can be calculated by finding the area above the supply curve and below the market price.
Factors such as changes in consumer preferences, income, and the prices of related goods can affect consumer surplus.
Factors such as changes in production costs, technology, and the prices of inputs can affect producer surplus.
A state in which resources are allocated in the most optimal way to maximize total surplus.
The overall well-being or satisfaction derived from consuming goods and services.
The loss of economic efficiency that occurs when the equilibrium quantity is not achieved due to market distortions.
A government-imposed maximum price that prevents the market price from rising above a certain level.
A government-imposed minimum price that prevents the market price from falling below a certain level.
A government payment to producers that reduces their costs of production and increases producer surplus.
A government-imposed fee on producers that increases their costs of production and reduces producer surplus.
A measure of how responsive quantity demanded or supplied is to changes in price or income.
A measure of how responsive quantity demanded is to changes in price.
A measure of how responsive quantity supplied is to changes in price.
A measure of how responsive quantity demanded is to changes in income.
A measure of how responsive quantity demanded of one good is to changes in the price of another good.
The satisfaction or happiness derived from consuming goods and services.
The additional satisfaction or happiness gained from consuming one more unit of a good or service.
The principle that as a person consumes more of a good, the additional satisfaction or happiness derived from each additional unit decreases.
The value of the next best alternative that must be forgone in order to obtain something else.
A graph that shows the maximum combinations of goods and services that can be produced given limited resources and technology.
The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than others.
The ability of an individual, firm, or country to produce more of a good or service than others using the same amount of resources.
The concentration of an individual, firm, or country's productive efforts on a limited range of goods or services.
The voluntary exchange of goods and services between individuals, firms, or countries.
The benefits that individuals, firms, or countries can achieve by specializing in the production of goods and services in which they have a comparative advantage.
The ratio at which a country can trade its exports for imports from other countries.
The absence of government-imposed barriers to international trade, such as tariffs and quotas.
The use of government policies to restrict or control international trade, often to protect domestic industries from foreign competition.
A tax imposed on imported goods, making them more expensive and less competitive in the domestic market.
A limit on the quantity or value of goods that can be imported, often used to protect domestic industries from foreign competition.
The practice of selling goods in a foreign market at a price below their production cost, often to drive out competition and gain market share.
The difference between the value of a country's exports and the value of its imports.
A situation in which the value of a country's exports exceeds the value of its imports.
A situation in which the value of a country's imports exceeds the value of its exports.
The system by which one currency is exchanged for another, enabling international trade and investment.
The price at which one currency can be exchanged for another.
An increase in the value of one currency relative to another, resulting in a higher exchange rate.
A decrease in the value of one currency relative to another, resulting in a lower exchange rate.
A system in which the value of a currency is fixed or pegged to the value of another currency or a commodity, such as gold.
A system in which the value of a currency is determined by market forces, such as supply and demand.
A sustained increase in the general price level of goods and services in an economy over a period of time.
A sustained decrease in the general price level of goods and services in an economy over a period of time.