IDC4U Unit 2 Key Terms

Definition: Consumer willingness and ability to buy products

• consumer expectations

• supply

• economics

• demand

Definition: The quantity demanded of a good falls when the price of the good rises

• Relative Cost

• Law of Demand

• Supply

• Law of Supply

Definition: The amount of something produced by a person, machine, or industry

• input

• supply

• demand

• output

Definition: the ascertaining of cause and effect, of action and outcome, within the economic system.

• analytical economics

• normative economics

• generalization

• demographics

Definition: Government-owned land, which is often rented or leased to individuals or companies for profit.

• new land

• crown land

• pure competition

• public debt

Definition: payments by the government to households for which the government does not receive a new good or service in return.

• factors of production

• transfer payments

• unearned income

• monetary policy

Definition: the most desirable alternative given up as the result of a decision

• relative cost

• opportunity cost

• value added

• economics

Definition: a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.

• Capitalism

• Communism

• Socialism

• Fallacy

Definition: The part of economics involving value judgments about what the economy should be like

• consumer sovereignty

• comparative advantage

• demographics

• normative economics

Definition: the market value a firm adds to a product.

• Output

• Value Added

• Relative Cost

• Price Index