Pages in this set

Page 1

Preview of page 1
Economics Definitions ­ UNIT 1

Scarcity: There are insufficient resources to provide for everyone's wants and so people have
to make a choice about how to use resources.
There are insufficient resources to provide for everyone's needs and wants and so people
have to make a decision about how to…

Page 2

Preview of page 2
Ownership: The state could either give property and capital away to companies and
individuals already employing them; the state could put assets into a fund and citizens
could have a share in property and the assets; the state could sell assets to the highest
bidder.
Distribution of Resources: The resources…

Page 3

Preview of page 3
% change in price of another good Y
Positive result substitute good, negative result complementary good, close to 0
unrelated
Price Elasticity of Supply: A measure of the responsiveness to a change in price (assessing
the firm's ability to increase supply when the price increases, due to an increase in…

Page 4

Preview of page 4
Market clearing: A market clears when supply matches demand, leaving no shortage or
surplus.
Equilibrium Price: The price where quantity demanded equals the quantity supplied: the
price where there is no shortage or surplus.
Consumer Surplus: The difference between the value to buyers and what they actually pay.
Producer Surplus:…

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all resources »