ECONOMICS CHAPTERS 1-3

Tabular model

• a law stating that, everything else being held constant, the lower the price charged for a good or service, the greater the quantity people will demand and vice versa

• a table or chart explaining the relationships

  between pairs of variables; also called a schedule

• a law stating that, everything else being

  held constant, the lower the price charged for a good or

  service, the greater the quantity people will demand and

  vice versa

• an imaginary unit of satisfaction

production possibilities curve

• model that enables

  an economist to see the maximum feasible amounts

  of two commodities that a business can produce when

  those items are competing for that business's limited

  resources

• an imaginary unit of satisfaction

• a law stating that, everything else being

  held constant, the lower the price charged for a good or

  service, the greater the quantity people will demand and

  vice versa

• a graph illustrating the various quantities

  of an item that are demanded at various prices

subjective value

• model that enables

  an economist to see the maximum feasible amounts

  of two commodities that a business can produce when

  those items are competing for that business's limited

  resources

• the worth of a good or service as deter-

  mined by its usefulness to the buyer

• a table or chart explaining the relationships

  between pairs of variables; also called a schedule

• a graph illustrating the various quantities

  of an item that are demanded at various prices

labor

• those persons who are working (the em-

  ployed) and those who are actively looking for a job (the

  unemployed)

• a graph illustrating the various quantities

  of an item that are demanded at various prices

• the factor of production denoting all human effort

  that goes into the creation of goods and services

• a table or chart explaining the relationships

  between pairs of variables; also called a schedule

opportunity cost

• the worth of a good or service as deter-

  mined by its usefulness to the buyer

• the satisfaction a person receives

  from a choice

• the factor of production denoting all human effort

  that goes into the creation of goods and services

• the satisfaction one gives up or the regret

  one experiences for not choosing a desirable alternative

capital

• model that enables

  an economist to see the maximum feasible amounts

  of two commodities that a business can produce when

  those items are competing for that business's limited

  resources

• the satisfaction a person receives

  from a choice

• the tools business firms use to produce goods

  and services

• a table or chart explaining the relationships

  between pairs of variables; also called a schedule

scarcity

• the condition of a good or service being finite or

  limited in quantity

• the satisfaction a person receives

  from a choice

• the worth of a good or service as deter-

  mined by its usefulness to the buyer

• a table or chart explaining the relationships

  between pairs of variables; also called a schedule

profit

• a law stating that, everything else being

  held constant, the lower the price charged for a good or

  service, the greater the quantity people will demand and

  vice versa

• the condition of a good or service being finite or

  limited in quantity

• factor costs involving the rewards entrepreneurs

  receive for successful risk taking

• an imaginary unit of satisfaction

service

• the condition of a good or service being finite or

  limited in quantity

• an intangible function produced by useful labor

• the tools business firms use to produce goods

  and services

• an imaginary unit of satisfaction

Transfer payments

• payments of money or goods from the

  government to individuals for which no specific eco-

  nomic repayment is expected

• guaranteed checks bought through banks

  from various financial institutions as a means of safe-

  keeping cash during travel

• an imaginary unit of satisfaction

• a law stating that, everything else being

  held constant, the lower the price charged for a good or

  service, the greater the quantity people will demand and

  vice versa