Macro

The next best alternative when an economic decision is made.

Good that are scarce and therefore have an opportunity cost.

Good that have no opportunity cost (Air).

Resources that are able to be replenished over time.

When total income or revenue for a firm is greater than total costs.

Limited government involvement in providing goods and services. Its main role is to ensure that the rules of the market are fair. (Property can't be stolen from others etc)

Indicates the maximum possible output that can be achieved given a fixed set of resources and technology in a particular time period.

When a firm operates at minimum average total cost, producing the maximum possible output from inputs into the production process.

When it is not possible to make an increase of something without making a decrease of something else.

Measuring the ratio of inputs to outputs.

The skills, abilities, motivation and knowledge of labour.

Increasing human capital productivity can shift PPB to the right.

Breaking the production process down and assigning workers to particular tasks.

The production of a limited range of goods to increase productive efficiency.

Statements and judgements based on opinion and personal values.

The amount that consumers are willing and able to buy at each given price level.

Total demand in a market for a good. The sum of all individuals' demand at each given price level.

Increases in demand caused by changes in falls in prices.

Goods or services that will see an increase in demand when incomes rise.

Goods or services that will see a decrease in demand when incomes rise.

Good that are consumed together. (Bread and butter.

When the demand for a good or service comes from the demand for another good or service.

The quantity offered for sale at each given price level.

The sum of all individual firm's supply curves at each given price.

When there is an increase in supply because the market price has risen.

When there is a decrease in supply because the market price has fallen.

When the production of one good leads to the production of another.

The price where demand is equal to supply and there is no tendency for change.

A situation within the market where supply does not equal demand.

When supply at a particular price is greater than demand.

The price at which all goods that are supplied will be demanded.

When demand is greater than supply at a given price.

A price ceiling where the price of a good or service is not allowed to increase.

A price floor where the price of a good or service is not allowed to decrease.

The responsiveness of demand to a change in the price level.

Payments by the government to producers to encourage production of goods and services.

When demand is high IoT tends to be high.

The proportion to which demand changes when there is a change in income.

Goods that can be used as alternatives to another good.

Usually refers to raw materials or unbranded semi-manafactured goods that are traded or sold in bulk.

Where the market fails to produce what consumers require at the lowest possible cost.

When government intervention to correct market failure does not improve the allocation of resources or leads to a worsening of the situation.

An intervention system that aims to limit fluctuations of the price of a commodity by keeping a reserve of stock.

Occurrences that are likely to lead to increased prices.

Costs imposed on a third party not involved with consumption or production of a good.

The process that converts factor inputs into outputs of goods and services.

Costs of production that does not vary as output changes.

Costs of production that varies as output changes.

Where an increase in the scale of production leads to reductions in average total cost for firms.

Where an increase in the scale of production leads to increases in average total costs for firms.

A market situation in which there are a large number of buyers and sellers.

A market structure dominated by a single seller of a good.

Costs or benefits that spill over to third parties external to a market transaction.

The spillover cost to third parties of an economic transaction.

The full cost to society of an economic transaction, including private and external costs.

The benefit to an individual or firm of an economic transaction.

The spillover benefit to third parties of an economic transaction.

A positive spillover effect to third parties of a market transaction.

The full benefit to society of an economic transaction, including private and external benefits.

A good that would under-consumed in a free market as consumers do not fully perceive the benefits obtained from consumption.

Where the free market provides a product but with a misallocation of resources.

A good that would be over-consumed in a free market, as it brings less overall benefit to consumers than they realise.

A good that possesses the characteristics of non-excludability and non-rivalry in consumption.

Where some consumers benefit from other consumers purchasing a good, particularly in the case of public goods.

A good that has some of the qualities of a public good but does not fully possess the two required characteristics of non-rivalry and non-excludability.

A good that is both excludable and rival in consumption.

Where the free market fails to provide a product at all.

As patterns of demand and employment change, many workers may find it difficult to easily secure new jobs, since they may lack necessary skills.

Where workers find it difficult to move to where employment opportunities may be, due to family ties and differences in housing costs.

A flow of earnings to a factor of production over a period of time.

A stock of owned assets.

A tax on spending.

A permit sold to firms by the government allowing them to pollute up to a certain limit.

A persistent increase in the level of prices.