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