Economics terms and definitions

As the term implies, macroeconomics looks at the overall, big picture scenario of the economy.

Economics terms and definitions

Economics terms and definitions

Markets Economists study trade, production and consumption decisions, such as those that occur in a traditional marketplace.

In Virtual Marketsbuyer and seller are not present and trade via intermediates and electronic information.

Microeconomics examines how entities, forming a market structureinteract within a market to create a market system. These entities include private and public players with various classifications, typically operating under scarcity of tradable units and light government regulation.

In theory, in a free market the aggregates sum of of quantity demanded by buyers and quantity supplied by sellers may reach economic equilibrium over time in reaction to price changes; in practice, various issues may prevent equilibrium, and any equilibrium reached may not necessarily be morally equitable.

For example, if the supply of healthcare services is limited by external factorsthe equilibrium price may be unaffordable for many who desire it but cannot pay for it. Various market structures exist.

In perfectly competitive marketsno participants are large enough to have the market power to set the price of a homogeneous product.

Economics words - Vocabulary List :

In other words, every participant is a "price taker" as no participant influences the price of a product. In the real world, markets often experience imperfect competition.

Forms include monopoly in which there is only one seller of a goodduopoly in which there are only two sellers of a goodoligopoly in which there are few sellers of a goodmonopolistic competition in which there are many sellers producing highly differentiated goodsmonopsony in which there is only one buyer of a goodand oligopsony in which there are few buyers of a good.

Unlike perfect competition, imperfect competition invariably means market power is unequally distributed. Firms under imperfect competition have the potential to be "price makers", which means that, by holding a disproportionately high share of market power, they can influence the prices of their products.

Microeconomics studies individual markets by simplifying the economic system by assuming that activity in the market being analysed does not affect other markets. This method of analysis is known as partial-equilibrium analysis supply and demand.

This method aggregates the sum of all activity in only one market. General-equilibrium theory studies various markets and their behaviour. It aggregates the sum of all activity across all markets. This method studies both changes in markets and their interactions leading towards equilibrium.

Production theory basicsOpportunity costEconomic efficiencyand Production—possibility frontier In microeconomics, production is the conversion of inputs into outputs.

It is an economic process that uses inputs to create a commodity or a service for exchange or direct use. Production is a flow and thus a rate of output per period of time. Distinctions include such production alternatives as for consumption food, haircuts, etc.

Opportunity cost is the economic cost of production:Definition and Explanation of Economics: Economics is growing very rapidly as the years pass. As new ideas are being discovered and the old theories are being revised, therefore, it is not possible to give a definition of economics which has a general acceptance.

the economic condition when everyone who wishes to work at the going wage rate for their type of labor is employed game theory (economics) a theory of competition stated in terms of gains and losses among opposing players. Definition of economics: The study of how the forces of supply and demand allocate scarce resources.

Subdivided into microeconomics, which examines the. Economics is a complex subject filled with a maze of confusing terms and details which can be difficult to explain.

Even economists have trouble defining exactly what economics, there is no doubt that the economy and the things we learn through economics affects our everyday lives.

Economics Terms study guide by polkadottedturkey includes questions covering vocabulary, terms and more. Quizlet flashcards, activities and games help you improve your grades. The Economist offers authoritative insight and opinion on international news, politics, business, finance, science, technology and the connections between them.

Economic Glossary - Advanced & Basic Economic Terms Definitions