Supply refers to the total amount of a commodity that producers are willing and able to sell at various price levels in a given time period. In economic terms, supply is a fundamental concept related to the available production capacity and market pricing dynamics.
Graphic representation of supply and demand schedules of a particular market showing the equilibrium point where the supply and demand curves intersect, determining the equilibrium price and quantity.
The Supply Price corresponds to the specific price level at which producers are willing to supply a particular quantity of goods or services, as indicated by a supply schedule or supply curve.
The Tax Wedge represents the economic effect of taxes which can potentially inhibit specific results by creating a wedge between the economic activities of producers and consumers.
An economic condition in which credit is difficult to secure, usually due to actions taken by the Federal Reserve Board to restrict the money supply.
Total cost represents the comprehensive expenses incurred by a firm to produce a specific level of output, encompassing both fixed and variable costs.
Total revenue is the amount of revenue a firm receives from sales at varying levels of output.
Total utility refers to the cumulative satisfaction or benefit that a consumer derives from consuming a particular quantity of goods or services.
A trade-off involves giving up one benefit or advantage to gain another that seems more favorable. This concept is prevalent in various decision-making processes where resources such as time, money, and effort are limited. Trade-offs are a fundamental aspect of economics, business strategy, and personal decision-making. For example, investing in education might involve a financial loss in the short term but yield higher earning potential in the future.
Transaction Costs refer to the various expenses incurred when making a transaction, beyond the actual price of the goods or services exchanged. These can include research, bargaining, and enforcement costs, among others.
A transfer payment is a payment made by the government to individuals, which is not in exchange for goods or services. It includes payments such as Social Security benefits, unemployment insurance, and welfare.
Goods or services sold at the full established price without allowances or discounts.
The unemployed labor force consists of the portion of the population that is not employed but is willing and able to work and is actively seeking employment.
Unemployment is the state of being without paid work, though willing and able to work and actively seeking work. It also refers to the proportion of the labor force that is without paid work.
The unit of account is a fundamental concept in economics and accounting that enables the quantification and comparison of the value of goods, services, and transactions, as well as the standardization of a country's currency.
Unitary elasticity refers to a situation in economics where a change in the market price of a good results in no change in the total amount spent for the good within the market.
The Utility Possibility Frontier (UPF) is a curve on a graph that illustrates the maximum utility levels that two different consumers can achieve given a fixed amount of resources and technology, highlighting the trade-offs in redistributing resources.
Value represents the worth of all the rights arising from ownership, commonly referring to the quantity of one thing that will be exchanged for another.
Value in exchange refers to the amount of other goods and services for which a unit of a specific good can be exchanged in a market. This is often represented by the money price of the good.
A Value-Added Tax (VAT) is a type of indirect tax levied on goods and services at each stage of production or distribution where value is added. It is prevalent in many countries worldwide and represents a significant source of revenue for governments.
Variable cost refers to expenses that change in proportion to the production output or sales volume. They fluctuate based on the operational activity, such as material costs, labor costs, and utility expenses.
A variable interest rate is the amount of compensation to a lender that is allowed to vary over the maturity of a loan. It is generally governed by an appropriate index.
The velocity of money refers to the frequency at which one unit of currency is used to purchase domestically-produced goods and services within a certain period. It is essential in understanding the health and efficiency of an economy.
A vertical union is a labor union that includes workers from multiple crafts and unskilled occupations within the same industry, rather than grouping workers by specific trade or skill.
Wage-push inflation is an inflationary situation in which increasing wages are not offset by rising productivity, leading to higher production costs and, consequently, increased prices for goods and services.
A market characterized by a preponderance of sellers over buyers and a general declining trend in prices.
Wealth refers to the value of all assets owned by an individual or entity, minus all outstanding debts. It serves as a stock measure of financial well-being, distinct from income, which is a flow measure of financial performance over a period.
A zero-sum game is an economic and strategic situation in which the sum of the gains and losses of all participants equals zero. In such scenarios, whatever one party gains is exactly balanced by the losses of the other parties.
