A market structure in which a large number of firms all produce the same product

Single producer supplies a unique product that has no close substitutes

Single producer owns a key natural resource - only stone quarry in a town

Gov't grants single firm or individual exclusive right to produce a good or service - patent/copyright, public franchise, licenses

Single firm can supply a good or service more efficiently and at a lower cost than two or more firms and competing firms can - utility industries

A market structure in which a few large firms dominate a market

Pattern of pricing in which one firm regularly announces price changes that other firms then match

Producers get together and make agreements on production levels and pricing

A market structure with many competitors selling differentiated products. Barriers to entry are low.

Using product differentiation and advertising to attract customers

a situation in which a market left on its own fails to allocate resources efficiently

Benefits falls on someone other than the producer or consumer

immunizations

Cost that falls on someone other than the producer or consumer

Factory pollution

Goods that are non-excludable and non-rival in consumption

Goods and services sold in markets - rival and excludable

Producers cannot prevent particular individuals from enjoying its benefits.

People are excluded from using the good unless they pay a price for it.

Goods may be consumed by one consumer without preventing simultaneous consumption by others.

the property of a good whereby one person's use diminishes other people's use

Fire and police services

National Defense

Which of these is an example of a private good?

When the government protects the ownership of resources, such as land, personal possessions, physical assets, and ideas

When the government works to prohibit practices that restrict competition and to prevent the formation of monopolies

When the government provides information about products and makes sure goods and services are safe and dependable

When the government works to safeguard the interests of workers and to protect their physical well-being

When the government collects taxes from some Americans and distributes the money to others to achieve greater income equality

The power of federal government to regulate the economy comes from Article _________ of the __________________________________ .

Focuses on the workings of an economy as a whole

Examines economic decision making by individuals, households, and businesses

GDP evaluated at current market prices that will include all of the changes in market prices that have occurred during the current year due to inflation or deflation.

A macroeconomic measure of the value of economic output adjusted for price changes

A good or service that is responsive to a change in price (Ex. Energy bar)

The unemployment which exists in any economy due to people being in the process of moving from one job to another

The unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand

a factor of overall unemployment that relates to the cyclical trends in growth and production that occur within the business cycle

A period of general economic decline marked by a falling GDP and rising unemployment

A period of economic growth

A prolonged economic downturn characterized by a plunging real GDP and extremely high unemployment

Seeks to increase the money supply to encourage economic growth or combat inflationary price increases

A central bank policy aimed at regulating the amount of money in circulation

Government policy regarding taxing and spending

a tax that takes the same share of income at all income levels

a tax that takes a larger share of income as income increases

a tax that takes a smaller share of income as income increases

This tax form lists the wages from the previous calendar year and the amount of tax that was withheld

Spending that is fixed by law

Social Security and Medicare are

Spending on education, defense and science and technology are

Government spending implemented through an appropriations bill

The market value of all final goods and services produced within a country during a given period of time

A recurring pattern of growth and decline in economic activity over time

A period of declining national economic activity for at least six months or longer

The percentage of the labor force that is not employed but is actively seeking work

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

A product that satisfies the same basic want as another product.

A product that is used or consumed jointly with another product. (i.e. gas and automobiles)

An economic law stating that as the price of a good or service increases, the quantity demanded decreases, and vice versa. Generally, consumers are happier to buy goods and services at lower prices at higher prices

The quantity of a good or service that producers are willing and able to offer for sale at various prices

Price/availability of resources, number of producers, technology,government action (taxes or subsidies), expectations of future profits

An economic law stating that as the price of a good or service increases, the quantity supplied increases, and vice versa. Generally, producers are happier to offer goods and services at higher prices than at lower prices

Changes in income, number of consumers, consumer expectations, tastes/preferences, changes in price of substitute or complementary goods

The condition that results because people have limited resources but unlimited wants.

The exchange of one benefit or advantage for another that is thought to be better.

A way to compare the costs of an action with the benefits of that action. If benefits exceed costs, than the action is worth taking.

A lack of something that is desired, a condition that occurs when there is less of a good or service available than people want at the current price

The resources used to produce goods and services. Economists define these resources as land, labor and capital

The satisfaction or pleasure one gains from consuming a product or service or from taking an action

The value of the next best alternative that is given up when making a choice; a measure of what you must give up to get what you want

An economic system in which decisions about production and consumption are based on custom and tradition

An economic system in which decisions about production and consumption are made by a powerful ruler or government

An economic system in which economic decisions are left up to individual producers and consumers

An economic system in which the workings of the market are not planned or directed

an economic system in which both the government and individuals play important roles in production and consumption; most modern economies are this type

A minimum price set by the government to prevent prices from going too low. Ex. Minimum wage

A maximum price set by the government to prevent prices from going too high. Ex. Rent control laws

The point at which the quantity of a product demanded by consumers in a market equals the quantity supplied by producers

The minimum interest rate set by the Federal Reserve for lending to other banks. A form of monetary policy

Involve s the buying and selling of government securities in the bond market. A form of monetary policy

The regulation that banks must keep a certain percentage of deposits on hand to repay depositors. A form of monetary policy.

An example of expansionary fiscal policy

Raising taxes. Expansionary or contractionary fiscal policy?

Raising the discount rate. Expansionary or contractionary monetary policy?

Buying treasury securities (bonds) on the open market. Expansionary or contractionary monetary policy?

Who answers the three fundamental economic questions in a command economy?

The tools, machines and buildings used to produce goods and services

Who answers the fundamental economic questions in a market economy?

The time and effort people devote to producing goods and services in exchange for wages