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Macro Ch 3 Vocab

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cnbunny's version from 2016-03-03 01:49

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Question Answer
the process of combining distinct things into a single wholeaggregation
other goods that firms in a market could produce instead of the good in questionalternate goods
a market other than the one being analyzed in which the same good could be soldalternate market
Latin for "all else remaining the same"Ceteris paribus
a movement along a demand curve in response to a change in pricechange in quantity demanded
a movement along a supply curve in response to a change in price change in quantity supplied
a shift of a demand curve in response to a change in some variable other than price change in demand
a shift of a supply curve in response to a change in some variable other than price change in supply
a simple model that shows how goods, resources, and dollar payments flow between households and firms circular flow
a good that is used together with some other goodcomplement
a graph of a demand schedule; a curve showing the quantity of a good or service demanded at various prices, with all other variables held constantdemand curve
a list showing the quantities of a good that consumers would choose to purchase at different prices, with all other variables held constantdemand schedule
the market price that, once achieved, remains constant until either the demand curve or supply curve shiftsequilibrium price
the market quantity bought and sold per period that, once achieved, remains constant until either the demand curve or supply curve shiftsequillibrium quantity
the amount that a person or firm earns over a particular periodincome
a good that people demand less of as their income risesinferior good
as the price of a good increases, the quantity supplied increaseslaw of supply
a group of buyers and sellers with the potential to trade with each othermarket
a good that people demand more of as their income risesnormal good
a market in which no buyer or seller has the power to influence the priceperfectly competitive market
markets in which firms sell goods and services to householdsproduct markets
the quantity of a good that all buyers in a market would choose to buy during a period of time, given their constraintsquantity demanded
the specific amount of a good that all sellers in a market would choose to sell over some time period, given their constraintsquantity supplied
markets in which households that own resources sell them to firmsresource markets
a good that can be used in place of some other good and that fulfills more or less the same purposesubstitute
a list showing the quantities of a good or service that firms would choose to produce and sell at different prices, with all other variables held constantsupply schedule
a graph of a supply schedule, showing the quantity of a good or service supplied at various prices, with all other variables held constantsupply curve
the total value of everything a person or firm owns, at a point in time, minus the total amount owedwealth
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