Scarcity --A physical or economic condition where the quantity desired of a good or service exceeds Microeconomic definition of terms availability of that good or service in the absence of a rationing system. A Glossary of Microeconomics Terms Abundance --A physical or economic condition where the quantity available of a resource exceeds the quantity desired in the absence of a rationing system.
Final Goods and Services --Goods and services that are purchased for direct consumption. Diminishing Marginal Productivity DMP --A short run production concept where increases in the variable factor of production lead to less and less additional output.
Factors of Production --An exhaustive list of inputs required for any type of production. It looks at the suppliers of labor services or workersthe demand for this service employersand tries to understand the pattern of wages, employment and income. Consumer's Surplus --The difference between what a consumer is willing to pay for each unit of a commodity consumed and the price actually paid.
Monopoly --A market structure where only one firm exists in a given industry. This is studied in the field of collective action and public choice theory. Decreasing Returns to Scale DRS --A long run production concept where a doubling of all factor inputs results in less than double the amount of output.
Scarcity --A physical or economic condition where the quantity desired of a good or service exceeds the availability of that good or service in the absence of a rationing system. It is at this point that economists make The technical assumption that preferences are locally non-satiated.
Elasticity economics Elasticity is the measurement of how responsive an economic variable is to a change in another variable. Income-Neutral Good --A good where quantity demanded is unchanged when consumer income changes. This implies that there are many buyers and sellers in the market and none of them have the capacity to significantly influence prices of goods and services.
Short Run Production --Production activity where only one factor of production may vary in quantity. The demand for various commodities by individuals is generally thought of as the outcome of a utility-maximizing process, with each individual trying to maximize their own utility under a budget constraint and a given consumption set.
Quite often, a sophisticated analysis is required to understand the demand-supply equation of a good model.
If a manufacturer raises the prices of cars, microeconomics says consumers will tend to buy fewer than before. Consumer demand theory[ edit ] Main article: Market --A place or institution where buyers and sellers come together and exchange factor inputs or final goods and services.
Consumer household --An economic agent that desires to purchase goods and services with the goal of maximizing the satisfaction from consumption of those goods and services. Wants --Preferences for goods and services over and above human needs.
Microeconomics could help an investor see why Apple Inc. Factors of Production --An exhaustive list of inputs required for any type of production. A Glossary of Microeconomics Terms Abundance --A physical or economic condition where the quantity available of a resource exceeds the quantity desired in the absence of a rationing system.
Individual actors are often broken down into microeconomic subgroups, such as buyers, sellers and business owners. Income Effect --A reaction of consumer's demand for goods or services due to changes in purchasing power holding relative prices constant see Substitution Effect.
Indifference Curve --A set of points that represent different bundles of goods which provide the consumer with the same level of satisfaction or utility. Income-Neutral Good --A good where quantity demanded is unchanged when consumer income changes. Unlike physicists or biologists, economists cannot run repeatable tests, so neoclassical economists make simplifying assumptions about markets — such as perfect knowledge, infinite numbers of buyers and sellers, homogeneous goods, or static variable relationships — to identify solutions.
Substitution among factors is not possible. Instead, microeconomics only explains what to expect if certain conditions change. Surplus -- A market condition where the quantity supplied of a particular commodity exceeds the quantity demanded Total Effect --The observed change in quantity demanded due to a price change of one particular good.
The opportunity cost of eating waffles is sacrificing the chance to eat chocolate.Macroeconomics definition is - a study of economics in terms of whole systems especially with reference to general levels of output and income and to the interrelations among sectors of the economy. It is important to note the distinction between macroeconomics and microeconomics.
Definition of Terms Everyone needs to eat and many people will use a grill to cook their food. In looking at the supply and demand of barbecue grills, several terms will be defined, including economics, microeconomics, the law of supply, and the law of demand.
Definition of Terms Technology today has revolutionized the health care realm, as technology evolves so does the environment promoting quality care for that in need. This presentation will explain multiple abbreviations needed to translate and describe AMR, CMR, CMS, along with CMS –and CPT. Microeconomics is the social science that studies the implications of individual human action, specifically about how those decisions affect the utilization and distribution of scarce resources.
Microeconomics (from Greek prefix mikro-meaning "small" + economics) is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.
A Glossary of Microeconomics Terms Abundance --A physical or economic condition where the quantity available of a resource exceeds the quantity desired in the absence of a rationing system.
Budget Set --Different bundles of goods and services that are attainable to the consumer at given market prices and the consumer's fixed level of .Download