Limited quantities of resources to meet unlimited wants

1. Limited quantities of resources to meet unlimited wants Scarcity

2. A situation in which a good or service is unavailable Shortage

3. Any human-made resource that is used to create other goods and services Capital

4. All human-made goods that are used to produce other goods and services; tools and buildings Physical capital

5. The skills and knowledge gained by a worker through education and experience Human capital

6. The most desirable alternative given up as the result of a decision Opportunity cost

7. Level of economic prosperity Standard of living

8. Economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services Traditional economy

9. Economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets Market economy

10. Economic system in which the central government makes all decisions on the production and consumption of goods and services Centrally planned economy

11. Economic system in which the central authority is in command of the economy; a centrally planned economy Command economy

12. Market-based economic system with limited government involvement Mixed economy

13. The struggle among producers for the dollars of consumers competition

14. Term economist use to describe the self-regulating nature of the marketplace Invisible hand

15. The power of consumers to decide what gets produced Consumer sovereignty

16. A social and political philosophy based on the belief that democratic means should be used to evenly distribute wealth throughout a society Socialism

17. A political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government communism

18. The doctrine that states that government generally should not intervene in the marketplace Laissez faire

19. Property owned by individuals or companies, not by the government of the people as a whole Private property

20. The desire to own something and the ability to pay for it demand

21. Consumers buy more of a good when its prince decreases and less when its price increases Law of demand

22. The change in consumption resulting from a change in real income Income effect

23. A good that consumers demand less of when their incomes increase Inferior good

24. Two goods that are bought and used together complements

25. Goods used in place of one another substitutes

26. Describes demand that is not very sensitive to a change in price inelastic

27. Describes demand that is very sensitive to a change in price elastic

28. The amount of goods abailable supply

29. Tendency of suppliers to offer more of a good at a higher price Law of supply

30. The amount a supplier is willing and able to supply at a certain price Quantity supplied

31. A measure of the way quantity supplied reacts to a change in price Elasticity of supply

32. The change in output from hiring one additional unity of labor Marginal product of labor

33. A level of production in which the marginal product of labor increases as the number of workers increases Increasing marginal returns

34. A cost that does not change, no matter how much of a good is produced Fixed cost

35. The cost of producing one more unit of a good Marginal cost

36. The cost of operating a facility, such as a store or factory Operating cost

37. A government payment that supports a business of market subsidy

38. Government intervention in a market that affects the production of a good regulation

39. The point at which quantity demanded and quantity supplied are equal equilibrium

40. When quantity demanded is more than quantity supplied Excess demand

41. When quantity supplied is more than quantity demanded Excess supply

42. A maximum price that can be legally charged for a good or service Price ceiling

43. A minimum price for a good or service Price floor

44. A price ceiling placed on rent Rent control

45. Situation in which quantity supplied is greater than quantity demanded; also known as excess supply surplus

46. Situation in which quantity demanded is greater than quantity supplied; also known as excess demand shortage

47. A sudden shortage of a good Supply shock

48. A system of allocating scarce goods and services using criteria other than price rationing

49. Law in a city or town that designates separate areas for residency and for business Zoning law

50. The legally bound obligation to pay debts liability