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Economic Review vocabulary. Economics. is the social science that studies the production, distribution, and consumption of goods and services. Scarcity.
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is the social science that studies the production, distribution, and consumption of goods and services.
– Ever-present situation in all markets whereby either fewer goods are available than the demand for them, or only too little money is available to their potential buyers for making the purchase. This universal phenomenon leads to the definition of economics as the "science of allocation of scarce resources.” Individuals, families, businesses, and government all face this basic economic problem.
– practicing economics; that is, avoiding waste or reducing expenditures. For example, your mother buys the larger, more concentrated laundry detergent in order to economize.
– the best alternative that is forgone because a particular course of action is pursued. For example, buying an expensive iPod Nano means you'll have less money to spend on fun weekend activities.
– an exchange of one thing in return for another, especially relinquishment of one benefit or advantage for another regarded as more desirable. For example, you want both a new outfit and a new and a class ring. You forgo the outfit for something that will last longer.
– Expenditure during particular period on goods and services used in satisfaction of needs and wants.
– Processes and methods employed in transformation of tangible inputs (raw materials, semi-finished goods, or subassemblies) and intangible inputs (ideas, information, know how) into goods or services.
– reciprocal transfer of goods or services from one entity to another.
– in economics, the movement of goods from manufacturer, or a way in which wealth is shared in any particular economic system.
– a particular society at a particular time and place; the knowledge and values shared by a society.
– A social group within a national culture that has distinctive patterns of behavior and beliefs.
– people having the same social, economic, or educational status.
– a family consisting of parents and their children and grandparents of a marital partner.
– a family consisting of the nuclear family and their blood relatives.
– practice or rule of conduct established in a particular community, locality, or trade, by long usage and obligatory on those within its scope.
– a monetary reward for a specific behavior, designed to encourage that behavior.
– an incentive that has an unintended and undesirable effect, that is against the interest of the incentive makers. For example, 19th century paleontologists traveling to China used to pay peasants for each fragment of dinosaur bone (dinosaur fossils) that they produced. They later discovered that peasants dug up the bones and then smashed them into multiple pieces to maximize their payments.
– desire for certain good or service supported by the capacity to purchase it.
– observation that, as a general rule, the demand for a product varies inversely with its price—lower prices stimulate demand and higher prices dampen it.
– total amount of a product (good or service) available for purchase at any specified price. It is determined by: • Price: producers will try to obtain the highest possible price whereas the buyers will try to pay the lowest possible price—both settling at the equilibrium price where supply equals demand. • Cost of inputs: lower the input price the higher the profit at a price level and more product will be offered at that price. • Price of other goods: lower prices of competing goods will reduce the price and the supplier may switch to switch to more profitable products thus reducing the supply.
