Economics (Economics and Science, Technology and Society Economics)

Microeconomics

The study of individuals and their decisions

Consumer Price Index (CPI)

A measure of the economy that uses consumer spending to determine the strength of an economy

Competition (Economics)

companies will strive for a greater share of the market by producing higher quality and more cheaply priced goods Example. Apple and Microsoft competing over laptop share

Macroeconomics

The design and function of the economy as a whole

Deficit

when the quantity demanded exceeds the quantity supplied

Law of Demand

s the price of a good increases, the less quantity of the good will be demanded

Example. If the price of a loaf of bread increased to $10, people would buy less bread

Stock Market

the market in which a person can buy and sell shares of a company

Perceived Value

how desirable a product is to the consumer

Production-Possibility Curve (PPC)

a graphical representation that shows the various combinations of two goods that can be produced given all the resources currently available to a producer

Economic Efficiency

the state that occurs when no more of one good can be produced without reducing the production of another good in the economy

Equilibrium (of a Market)

when the quantity supplied is equal to the quantity demanded

Surplus

when the quantity supplied is greater than the quantity desired

Cost-Benefit Analysis

systematic approach used to evaluate the potential benefits and costs of a proposed project, investment, or decision, aiming to determine whether the benefits outweigh the costs and justify the undertaking

Supply

the quantity of a good produced at a given time in an economy

Share

a small percentage of the company

Economies of Scale

a reduction in the price of per-unit production resulting from producing more at once Example. Buying raw materials in bulk at a discount, thereby decreasing the per-unit cost

Specialization of Labor / Division of Labor

A tendency for groups to focus and work on (specialize) wherever they can make the best product at the highest revenue (comparative advantage) and use trade to acquire other products

Law of Supply

as the price of a good increases, a greater quantity of the good will be supplied. Example. If gum increases from $1 a piece to $10 a piece, then more suppliers would supply gum.

Gross Domestic Product (GDP)

The total value of all domestic production in a country. GDP sums up the market value of all final goods and services produced in a nation within one year

Labor Force

all of the people working and willing/able to work, including those who want to work but are unable to find a job

Dividends

periodic payments made by a corporation to its shareholders, usually in the form of cash or additional shares, representing a portion of the company's earnings

Elasticity

the ease with which a supply or demand slope is able to vary Example. High Elasticity: Lattes - If the price doubled, people would buy a different caffeinated drink. Low Elasticity: Diapers - Even if the cost of diapers were to double, people would still buy diapers.

Disequilibrium (of a Market)

when either the quantity supplied or the quantity desired exceeds the other

Circular Flow

Movement in an economy of good, services, and money from consumers to producers and back again

Demand

the quantity of a good that consumers desire to purchase at a given time in an economy

Opportunity Cost

The cost of the next best opportunity a person gives up when they make an economic choice Example. When choosing to study instead of going out with friends, the opportunity cost is missing out on social time.

Employment Percentage

The percentage of people employed in an economy

Scarcity

In Economics, the fact that there are not enough resources to fulfill all human needs and desires