When producers can’t or will not offer goods and services at current prices

When there is a less than desirable quantity of resources

When there is too much of a good

What does efficiency mean in terms of economics?

using resources to make the greatest number of goods without waste

using resources to make the least number of goods without waste

using resources to make the greatest number of goods with the most waste ▲

philosopher that wrote Wealth of Nations

philosopher that wrote Das Kapital

philosopher that wrote The Republic

philosopher that wrote Capital in the 21st century

an arrangement that allows buyers and sellers to exchange things for what people need and want

country’s ability to produce more of a given product than can another country

economic system in which government owns some factors of production and has a role in determining what and how goods are produced

explanation stating that the supply and demand for a worker’s skills and services determine the wage or salary

What is self interest?

working for one's own personal gain

When you're interested in one's self

When you explain your interests

What is consumer sovereignty?

Where the people have sovereignty in a country

Where business control the market

What can regulation negatively do in a free market?

Infringe on consumer sovereignty

What is gross domestic product?

Measurement of total goods/services produced in a year

What is the law of demand?

consumers buy more when prices are cheaper

price and quantity supplied of a good are directly related to each other.

That consumers will demand products

That businesses will demand better policies for themselves

What is the income effect?

change in quantity demanded because a change in price alters consumer's income

Income will have no effect on demand

What is the law of supply?

price and quantity supplied of a good are directly related to each other.

the higher the price of a good, the fewer people will demand that good

That businesses will always produce more

Consumers will not be effected by supply

What is a bank in terms of economics?

an institution for receiving, keeping, and lending money

Institution that holds valuable property

What is a national bank?

a bank chartered by the national government

Only bank responsible for lending

anything that serves as a medium of exchange, a unit of account, and a store of value

coins and paper bills used as money

The current exchange rate of money

The current stock of money in a country

What is representative money?

objects that have value because the holder can exchange them for something else of value

money by government decree; has no alternative value or use as a commodity

money that has an alternative use as an economic good; gunpowder, flour, corn, etc

paper currency issued by the Fed that eventually replaced all other types of federal currency

What is a mutual fund?

company that sells shares of a portfolio of securities, e.g., stocks and bonds issued by other companies

certificate of ownership in a corporation; can be either common or preferred stock

physical place where buyers and sellers meet to exchange securities

change in overall spending caused by a change in investment spending

What are most financial institutions protected by?

Federal and state deposit insurance

is payment from a borrower or deposit-taking financial institution to a lender or depositor

What is the principle?

Refers to the amount of money you deposit in your account to begin saving

is payment from a borrower or deposit-taking financial institution to a lender or depositor

The amount paid to the central government

What is monopolistic competition?

market structure having all conditions of pure competition except for identical products; a form of imperfect competition

market structure in which a few large sellers dominate the market and have the ability to affect prices in the industry; form of imperfect competition

market structure characterized by a single producer; form of imperfect competition

a theoretical market structure that requires three major conditions: very large numbers of buyers and sellers, identical products, and freedom of entry and exit

What is pure competition?

a theoretical market structure that requires three major conditions: very large numbers of buyers and sellers, identical products, and freedom of entry and exit

market structure in which a few large sellers dominate the market and have the ability to affect prices in the industry; form of imperfect competition

market structure characterized by a single producer; form of imperfect competition

What is an oligopoly?

market structure in which a few large sellers dominate the market and have the ability to affect prices in the industry; form of imperfect competition

a theoretical market structure that requires three major conditions: very large numbers of buyers and sellers, identical products, and freedom of entry and exit

market structure having all conditions of pure competition except for identical products; a form of imperfect competition

market structure characterized by a single producer; form of imperfect competition

a theoretical market structure that requires three major conditions: very large numbers of buyers and sellers, identical products, and freedom of entry and exit

market structure having all conditions of pure competition except for identical products; a form of imperfect competition

market structure in which a few large sellers dominate the market and have the ability to affect prices in the industry; form of imperfect competition

What is a sole proprietorship?

unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States

unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm

business investment that involves renting or leasing another successful business model

form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued

What is a partnership?