APEX chatper 3 economics part 1
rent
to pay money for the right to live somewhere
outsource
to send a job from one place to another usually another country
lobbying
trying to persuade the government to pass favorable laws
median home price
midpoint price level half the homes cost more half cost less
union dues
money paid by workers to support the union
optimal
most favorable or desirable
landlord
person who owns property and rents it to those that live there
protectionist
policies designed to keep a countrys economy businesses and workers safe from competition
trade barriers
policies that reduce or eliminate international trade
equilibrium price
price at which quantity supplied equals quantity demanded.
suburbs
primary neighborhoods near but not in a city
lucrative
producing a sizable profit
investment
purchase of an asset with the intention of making a profit
business cycle
regular changes in economic activity
monetary policy
regulation of the money supply through government actions
zoning laws
regulations for how land can be used in certain areas
domestic
related to or coming from ones home country
apartment building
renter occupied units in an apartment building owned by a landlord
strikebreakers
replacement workers intended to break a strike
exurbs
residential areas further than suburbs
inflation
rising prices of goods and services
supply and demand curve
A graph showing the intersection of the supply curve and the demand curve.
public good
A non-excludable, non-rival good. ex. a parade is something people enjoy together
demand schedule
A table showing the relationship between prices and quantities demanded
inferior goods
Goods that people buy less of as their wealth increases.
normal goods
Goods that people buy more of as their wealth increases.
budget constraints
Limitations on a person's ability to spend money.
inelastic
Low level of flexibility in demand.
efficiency
Producing something with as little waste as possible.
allocation
Setting aside resources for a specific purpose
individual good
Something that an individual can enjoy to the exclusion of everyone else ex. a potato is an individual good because you enjoy it alone
substitute
Switching from one good to a similar good, usually one that is less expensive.
utility
The amount of personal satisfaction gained from the use or consumption of goods and services.
opportunity cost
The benefits of the best alternative option that are given up by a particular decision.
production
The creation of goods and services to satisfy wants and needs.
decreasing marginal utility
The decrease in the amount of satisfaction added as each new unit is consumed.
elasticity
The flexibility of a consumer's demand for a good or service
wealth effect
The tendency for consumers to buy more goods as their income rises.
fungibility
When all units of a good are the same as each other.
elastic demand
When consumer demand rises and falls with price.
recession
a general slowdown in economic activity
subsidy
a government payment to someone
supply curve
a graph of the supply schedule
collective bargaining
a group of employees negotiates a contract with an employer
townhouse
a house attached to other houses usually in a long row
single family home
a house not attached to any other houses
cooperative
a housing type where the owners are the shareholders in a corporation that owns the building
mortgage
a loan to pay for a house or some other real estate
free rider
a non paying user of a good
depression
a period of decreasing economic activity falling prices and high unemployment
individual bargaining
a process where individuals negotiates a contract with an employer
cost push inflation
a rise in prices beacause of a rise in production costs
demand pull inflation
a rise in prices because of a rise in demand
condominium
a structure of two or more units that are individually owned with common parts that are jointly owned
unemployment insurance
a system of insurance that pays unemployed workers for a period of time as they look for another job
tariff
a tax on international trade typically on imports
wage
amount received by workers for their labor
slowdown
an intentional reduction of productivity by workers
labor market
area of the economy in which jobs are offered and accepted
population density
average number of people living in a particular space
workforce
collective term for the people who work at jobs
diversify
creat differences
supply
different quantities of a good or service that potential sellers are willing and able to sell at various prices during a specific time period.
supply schedule
displays quantity supplied at each given price
specialization
focused on a specific task
law of supply and demand
helps make sense of how prices are set and why they go up and down
boom
high employment and rising demand
demand
how much consumers buy
determines price
how much of a good or service is produced relative to how badly buyers want it. (supply relative to demand)
globalization
increasing interconnectedness of people
quota
limits the import or export of certain goods
urban
located in a city
rural
located in the country
exogenous
something outside the system
non excludable
something people cant be kept from using
commodity
something useful that can be bought and sold
industrial action
steps taken by workers to affect production in order to influence employers
quantity supplied
supply at a particular price
surplus
supply is higher than demand. prices drop
standard of living
the amount of goods and services the average person receives
mortgage interest rate
the amount of interest charged on a loan used to buy a house
demographics
the disribution of the population based on factors such as age, income, profession, ect
trade
the exchange of goods and services for things like money
demand curve
the graph of a demand schedule
consumer sovereignty
the idea that consumer demand determines what gets supplied
market failure
the inability of a free market to provide a good thats demanded by consumers
bargaining power
the level of strength enjoyed by one side of a negotiation
reserve wage
the lowest amount a worker will accept for a job
immigration
the movement of people from one country to another
market share
the percentage of overall sales in a particular area that is made by a single company
urban renewal
the revitalization of an old and undesirable part of the city
lockout
when an employer precents workers from entering the workplace
shortage
when demand is higher than supply. causes prices to go up
non rival
when someone elses use doesnt diminish the useability of the good
scarcity
when the demand is greater than the supply. The law of supply only works under this condition
owner occupied
when the person who lives in the housing unit also owns it
renter occupied
when the person who lives in the housing unit pays the owner to live there
housing market
where house and apartments are offered and purchased or rented
labor pool
workers available for jobs
labor union
workers organized into a group that pushes for higher wages and better working conditions