Basic Economics Definitions

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Can you name the Basic Economics Definitions?

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

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