MS. RAGAZZO'S CLASSROOM



Economics TermsUnit 2 – Microeconomics flow diagram: economic model that shows the flow of goods, services and money in the market economyFactor market: illustrates the flow of money and the factors of production between the household and the businessGoods: tangible item that can be bought or soldHousehold: consumers; anyone who purchases a good or a service Interdependence: a situation in which decisions made by one person affect decisions made by other people, or events in one part of the world or sector of the economy affect other parts of the world or other sectors of the economy.Money: any item of value used to buy or sell goods or servicesProduct market: illustrate the flow of money and goods and services between businesses and the householdServices: intangible item that can be bought or sold Demand curve: The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.Equilibrium price: The price at which the quantity demanded by buyers equals the quantity supplied by sellers; also called the market-clearing price.Equilibrium quality: The quantity demanded and quantity supplied at the equilibrium or market-clearing price.Law of demand: As the price of a good or service rises (or falls), the quantity of that good or service that people are willing and able to buy during a certain period of time falls (or rises).Law of supply: As the price of a good or service rises (or falls), the quantity of that good or service that people are willing and able to buy during a certain period of time falls (or rises).Quantity demanded: term used in economics to describe the total amount of goods or services?demanded?at any given price.Quantity supplied: term used in economics to describe the total amount of goods or services?demanded?at any given price.Supply curve: The quantity of a good or service that sellers are willing and able to sell at different petition: Attempts by two or more individuals or organizations to acquire the same goods, services, or productive and financial resources. Consumers compete with other consumers for goods and services. Producers compete with other producers for sales to consumers.Demand: The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.Determinants of Demand: factors that may cause changes in or affect the demand of a product in the market place.Determinants of supply: factors that may cause changes in or affect the supply of a product in the market place.Markets: Places, institutions or technological arrangements where or by means of which goods or services are exchanged.Prices: The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or service.Supply: The amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time.Price ceiling: a government-imposed price control or limit on how high a price is charged for a product Price floor: a government- or group-imposed price control or limit on how low a price can be charged for a product.Shortage: when the quantity demanded is greater than the quantity suppliedSurplus: When the quantity supplied is greater than the quantity demandedSole proprietorship: form of business organization with one ownerPartnership: form of business organization with 2 or more ownersCorporation: form of business organization owned by shareholdersMonopoly: market structure in which one business controls an entire industryOligopoly: market structure in which 3 or more businesses control the entire industryMonopolistic competition: market structure in which products are differentiated with some control over pricePure competition: market structure in which there are many buyers and sellers and prices are determined by supply and demand ................
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