Terms Social science Goods Services Needs Economic good Opportunity cost Production Possibilities Curve (PPC)

Utility

Ceteris paribus Free market system is self National income Economic development Demand Supply Equilibrium Price Equilibrium Pe Consumer surplus Producer surplus

Elasticity Elasticity of demand Price Elasticity of Demand (PED) Cross elasticity of demand (XED) Income Elasticity of Demand (YED) Price Elasticity of Supply (PES) Price elasticity of demand for commodities Indirect tax

Definition Study of people in society and how they interact with each other Physical object that are capable of being touched(tangible) Intangible things that cannot be touches Things that we must have to survive Any good or service that has a price and being rationed The next best alternative foregone when an economic decision is made Shows the maximum combinations of goods and services that can be produced by an economy in a given time period , if all the resources are being used fully and efficiently and the state of technology is fixed Measure of usefulness and pleasure Total utility total satisfaction gained from consuming a certain quantity of a product. Marginal unity extra utility gained from consuming one more unit of a product All other things being equal Righting system Value of all the goods and services produced in an economy in a given the time period, normally one year. Measure of welfare Quantity of g&s that the consumers are willing and able to pay at a given price in a given time Ability and willingness of producers to produce g&s in a given time at a given price level A state of rest, self-perpetuating in the absence of any outside disturbance Market cleaning price Extra satisfaction (or utility) gain by consumers from paying a price that is lower than that which they are prepared to pay Excess of actual earnings that a producer makes from a given quantity of output, over and above the amount producer would be prepared to accept for that output Measure of responsiveness Measure of how much the demand changes when there is a change in one of the factors that determine demand Measure of how much the quantity demanded of a product charges when there is a change in the price of the product Measure of how much the demand for a product change s when there is a change in the price of another product How much the demand for a product changes when there is a change in consumers income Measure of how much supply of a product changes when there is a change in the price of the product Commodities-raw materials One imposed upon expenditure -Specific tax -Percentage tax

Subsidy Specific subsidy Maximum price control (Price ceiling) Minimum price control (Price floor) Non-excludable Non-rivalrous Externality Marginal Private Benefit (MPB) Marginal Private Social (MSC) Negative externalities of production Positive externalities of production Sustainability Common access resources

Amount of money paid by the government to a firm per unit of output A specific amount of money that is given for each unit of the product Government sets a maximum price below equilibrium price which then prevent the producers from rising the price above it Government sets a minimum price above the equilibrium price which then prevent the producers from reducing the price below it Impossible to stop other people from consuming it once it has been provided One person consuming it does not prevent other from consuming it as well Production or consumption of goods and services that has an effect upon the third party Private demand curve that is based on the utility or benefit to consumer Private supply curve that is based on the firms cost of production Production of a good or service creates external cost that are damaging to third parties Production of a good or service that creates external benefit that are good for third parties Consumption needs of the present generation are met without reducing the ability to meet the need of future generation Natural resources