Basic Economics Definitions

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Can you name the Basic Economics Definitions?

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PrincipleDefinition
a good for which, other things equal, an increase in income leads to an increase in demand
person who receives the benefit of a good but avoids paying for it
property whereby long-run average total cost falls as the quantity of output increases
input costs that do not require an outlay of money by a firm
the relationship between the quantity of inputs used to make a good and the quantity of output of that good
a particular 'game' between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
amount a buyer is willing to pay for a good minus the amount they buyer actually pays for it
a situation in which economic factors interacting with one another choose their best strategy given the strategies that all the other factors have chosen
a situation in which a market left on its own fails to allocate resources efficiently
claims that attempt to prescribe how the world should be
total cost divided by the quantity of output
property whereby the marginal product of an input declines as the quantity of the input increases
a tax on goods produced abroad and sold domestically
market with many buyers and sellers trading identical products so that each buyer and seller is a price taker
total revenue minus total cost, including both explicit and implicit costs
increase in total cost that arises from an additional unit of input
a tax for which everyone pays the same fraction of income
taxes should be levied on a person according to how well that person can shoulder the burden
an agreement among firms in a market about the quantities to produce or prices to charge
the property whereby long-run average total cost stays the same as the quantity of output changes
a tax for which high-income taxpayers pay a smaller fraction of their income than do low-income taxpayers
variable cost divided by the quantity of output
study of how people behave in strategic situations
property whereby the benefit from an extra unit of an input decreases as the quantity of the input increases
fixed cost divided by the quantity of output
total taxes paid divided by total income
market value of all final goods and services produced within a country at a given period of time
PrincipleDefinition
quantity of goods and services produced from each unit of labor input
total revenue minus total cost
increase in the amount of output from an additional unit of labor
a tax for which high-income taxpayers pay a larger fraction of their income than do low-income taxpayers
a shortfall of tax revenue from government spending
a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology
two goods for which an increase in the price of one leads to an increase in the demand for the other
total revenue divided by the quantity sold
a firm that is the sole seller of a product without close substitutes
altering incentives so that people take account of the external effects of their actions
good for which, other things equal, an increase in income leads to decrease in demand
a legal maximum on the price at which a good can be sold
increase in output that arises from an additional unit of input
amount a firm receives for the sale of its output
ability to produce a good at a lower opportunity cost than another producer
a tax designed to induce private decision makers to take account of the social costs that arise from a negative externality
the uncompensated impact of one person's actions on the well-being of a bystander
a parable that illustrates why common resources are used more than is desirable from the standpoint of a society as a whole
input costs that require an outlay of money by the firm
measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants
a legal minimum on the price at which a good can be sold
a market structure in which only a few sellers offer similar or identical products
goods that are neither excludable nor rival in consumption
small incremental adjustments to a plan of action
two goods for which an increase in the price of one leads to a decrease in the demand for the other
amount a seller is paid for a good minus the seller's cost of providing it
a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
PrincipleDefinition
property whereby long-run average total cost rises as the quantity of output increases
tax that is the same amount for every person
ability of a single economic actor (or a small group of actors) to have a substantial influence on market prices
fall in total surplus that results from a market distortion, such as a tax
a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good
total revenue minus total explicit cost
measure of how much the quantity demanded of a good responds to a change in consumers' income, computed as the percentage change in quantity demanded by the percentage change in in
extra taxes paid on an additional dollar of income
idea that taxpayers with a greater ability to pay taxes should pay larger amounts
an excess of tax revenue over government spending
marginal product of an input times the price of the output
a market structure in which many firms sell products that are similar but not identical
goods that are both excludable and rival in consumption
change in total revenue from an additional unit sold
property of a good whereby a person can be prevented from using it
proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own
claims that attempt to describe the world as it is
the equipment and structures used to produce goods and services
manner in which the burden of a tax is shared among participants in a market
business practice of selling the same good at different prices to different customers
idea that people should pay taxes based on the benefits they receive from government services
idea that taxpayers with similar abilities to pay taxes should pay the same amount
goods that are rival in consumption but not excludable
a group of firms acting in unison
amount paid by buyers and received by sellers of a good, computed as the price of the good times the quantity sold
fluctuations in economic activity, such as employment and production

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