Economics and Competitive Analysis

Vocabulary flashcards covering key concepts in economics and competitive analysis.

Economics

The study of how individuals and societies make decisions about resources, production, distribution, exchange, and consumption of goods and services.

Microeconomics

The study of behavior and decision-making of individuals and businesses in an economy.

Macroeconomics

The study of the behavior, performance, structure, and decision-making of an economy as a whole.

Trade-off

Choosing between two things that cannot be had or done at the same time, which may require a compromise.

Scarcity

The reality that people’s wants always exceed the resources available to fulfill those wants.

Economic Wants

Desires for goods, services or intangible items that can only be acquired by spending money.

Noneconomic Wants

Desires that do not require money to be obtained.

Economic Utility

Something’s usefulness and the degree to which wants are satisfied.

Capital Goods

The physical assets used to produce goods and services, including machinery, equipment, buildings, and tools.

Opportunity Cost

The loss of potential gain from other alternatives, when one alternative is chosen.

Producers

Individuals or companies that use resources to make products.

Natural Resources

Materials and substances found in nature that are used for economic gain.

Economic Good

A good or service that has a benefit to society, has value, and can be traded and exchanged.

Form Utility

The value added to products by changing their form, making them more useful.

Direct Competition

Occurs when companies offer essentially the same product or service.

Indirect Competition

Occurs when products or services are not the same, but they could satisfy the same need.

Monopoly

A market structure where one company controls the supply of a good or service.

Oligopoly

A market structure in which a small number of companies control the supply of a good or service.

Monopolistic Competition

A market structure where many suppliers differentiate their products and gain some price advantage.

Pure Competition

A market structure where a large number of companies provide essentially the same product.

Capitalism

The economic system based on private ownership and the free market.