Introduction to Economics

A collection of vocabulary flashcards derived from the lecture notes on introductory economics concepts.

Law of Demand

An economic theory stating that as prices rise, the quantity demanded decreases and vice versa.

Movements Along the Demand Curve

Changes in quantity demanded due to price changes, depicted as movements along the curve.

Shifts in the Demand Curve

Changes in demand caused by factors other than price, such as consumer preferences or income.

Market Demand Curve

The total quantities demanded by all consumers in a market at different price levels.

Supply Curve

A graph showing the relationship between the price of a good and the quantity supplied.

Equilibrium Price

The price at which the quantity demanded equals the quantity supplied, with no excess demand or supply.

Opportunity Cost

The benefit lost when choosing one alternative over another.

Diminishing Returns

A principle stating that as more resources are devoted to a certain activity, the incremental gains will eventually decrease.

Marginal Cost

The cost of producing one additional unit of a good.

Positive Statements

Statements that can be tested and validated, focusing on facts.

Normative Statements

Statements that express opinions or value judgments, stating what ought to be.