The desires and needs of consumers that have to be satisfied

It also known as the price theory

It pertains to the national income analysis

The payment for the use of land

It corresponds to the price of capital

Inputs used in production

Another term used for “equilibrium

It refers to man’s mental and physical efforts exerted in production

It is considered as a basic consuming unit

The system in which market prices serve as signal to the producers about what goods to produce and how much of these goods should be produced

The economic system in which production decisions are made according to customs and traditions

“The brains” behind the business

If the price of pork increases, supply will_____

A decrease in income shifts the demand curve to the

Father of Economics

Laborer is the planner, organizer and coordinator of the other factors of production

Diminishing MU is also known as the law of diminishing marginal productivity

Average Product is output per unit of the variable resource input

Revenue also known as income

Potential increase in the consumption of two commodities is substitution effect

Isoquant represents what can be produced

Perception is a descriptive thought that a person holds about something

Profit maximization or loss minimization is determined at a point where MR is equal MC

Industry that enjoys pure profit

No advertising cost

Seller takes the role of a price taker

During short run period, and efficient firms and other forms enjoy pure profits.

To prevent a firm shutting down in the short run, it must

Point of Profit Maximization