the limited nature of society's resources

a graph that show the combinations of output that the economy can possibly produce given the available factors of production and the available production technology

the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises

the claim that, other things equal, the quantity supplied of a good rises when the price of the good rises

a legal maximum on the price at which a good can be sold

the study of how society manages its scarce resources

the study of how households and firms make decisions and how they interact in markets

a good for which, other things equal, an increase in income leads to an increase in demand

a situation in which the price has reached the level where quantity demanded equals quantity supplied

a buyer's willingness to pay minus the amount the buyer actually pays

whatever must be given up to obtain some item

the study of economy wide phenomena, including inflation, unemployment, and economic growth

a good for which, other things equal, an increase in income leads to a decrease in demand

a situation in which quantity supplied is greater than quantity demanded

the amount a seller is paid for a good minus the seller's cost

fluctuations in economic activity, such as employment and production

a reciprocal relation between interdependent entities

two goods for which an increase in the price of one good leads to an increase in the demand for the other good

a situation in which quantity demanded is greater than quantity supplied

total revenue minus total cost

an increase in the overall level of prices in the economy

to focus on a particular area

two goods for which an increase in the price of one good leads to a decrease in the demand for the other good

Scottish political economist and moral philosopher. His inquiry into the Nature and Causes of the Wealth of Nations was one of the earliest attempts to study the historical development of industry and commerce in Europe. That work helped to create the modern academic discipline of economics and provided one of the best known intellectual rationales for free trade and capitalism

the equipment and structures used to produce goods and services