Terms
1) List the different kind of suppliers in an economy
Monopoly
Oligopoly
Perfect Competition
2) Law of Demand- states that the quantity of a good demanded is inversely related to the good’s price
3) Law of Supply- is based on substitutions and the expectation of profits
4) Marginal Cost- the additional cost to you over and above the costs you have already incurred
5) Marginal Revenue- the change in total revenue associated with a change in quantity
6) Utility- the pleasure or satisfaction that people get from doing or consuming something
7) Opportunity Cost- the invisible hand, market forces, economic forces
8) Rational Behavior- a decision-making process that is based on making choices that result in the most optimal level of benefit or utility for the individual
9) Economic Forces- Factors such as level of employment, rate of inflation, rate of interest, demographic changes, and fiscal and monetary policies, which determine the state of competitive environment in which a firm operates
10) Scarcity- The goods available are too few to satisfy individuals’ desires
11) Market Forces- an economic force that is given relatively free rein by society to work through the market.
12) Comparative Advantage- The ability to be better suited to the production of one good than to the production of another good.
13) Technological Advances- the science that deals with the production, distribution, and consumption of goods and services, or the material welfare of humankind
14) Capitalism- An economic system based on the market in which the ownership of the means of production resides with a small group of individuals called capitalists.
15) Market Equilibrium- the state in which market supply and demand balance each other and, as a result, prices become stable
16) Elasticity- the percentage change in quantity is greater than the percentage change in price ( E>1).
17) Substitute Goods (Products)- Different goods that, at least partly, satisfy the same needs of the consumers and, therefore, can be used to replace one another
18) Profit margin-the amount by which revenue from sales exceeds costs in a business
19) Niche Market- Concentrating all marketing efforts on a small but specific and well defined segment of the population
20) Homogeneous- of the same or a similar kind or nature
21) Heterogeneous- consisting of dissimilar or diverse ingredients or constituents
22) Fixed Cost- Costs that are spent and cannot be changed in the period of time under consideration
23) Variable Cost-Costs that change as output changes
24) Economies of Scale- situation when long-run average total costs decrease as output increases
25) Technical Efficiency- A situation in which as few inputs as possible are used to produce a given output.
26) Economic Efficiency- achieving a goal at the lowest possible cost
27) Collusion- a non-competitive agreement between rivals that attempts to disrupt the market's equilibrium
28) Cartel- A combination of firms that acts as if it were a single firm.
29) Vice-immoral or wicked behavior
30) Reverse Engineering-The process of a firm buying other firms’ products, disassembling them, figuring out what’s special about them, and then copying them within the limits of the law
31) Delayed Gratification- refers to the ability to put off the receipt of a reward in order to gain a better reward later
32) Instant Gratification- Delayed gratification, or deferred gratification, is the ability to resist the temptation for an immediate