Intro to Econ Definitions

The quantity of a good or service that consumers are willing and able to buy at various prices during a specific period

Supply refers to the quantity of a good or service that producers are willing and able to offer for sale at various prices during a given period.

The situation in which available resources/ factors of production are finite, whereas wants are infinite.

development that meets the needs of the present without sacrificing the ability of future generations to meet their own needs.

refers to the value of the next best alternative forgone when a decision is made. It represents the benefits that could have been gained from choosing an alternative option.

making the best possible use of scarce resources to avoid resource waste

the idea of being just; equality of income, wealth, and human opportunity distribution

economic decision-makers interact with and depend on each other, all economic decision impact each other

government getting involved with the market that change the allocation of resources and distribution of output and income from what markets would achieve on their own made through government commands

assigning available resources/ factors of production to specific uses chosen among many possible alternatives

decision to change amounts of goods produced

the production of too many of the “wrong” goods/resources relative to what is socially desirable

the production of too few goods/services relative to what is socially desirable

how much output different individuals or groups in the population receives

how much income individuals or groups in a population receive

when the distribution of income/output changes so different social groups receive more or less income/output than before

highest output using all available resources

occurs when there is an increase in the productive potential of an economy (outward shift of PPC)

the additional utility gained from the consumption of an additional product. Total utility increases with additional unties, but the marginal utility falls.

a measure of satisfaction or usefulness a consumer receives when they consume a product

use of government spending and tax to influence the economy and reach macroeconomic goals (used to stabilize an economy during a recession or depression)

adjustment of interest rates and money supply to influence aggregate demand