| Line 17: |
Line 17: |
| | **competition | | **competition |
| | **efficiency | | **efficiency |
| | + | **free market (a synonym is "free enterprise") |
| | **microeconomics (the study of individual “micro” market decisions, companies, consumers) | | **microeconomics (the study of individual “micro” market decisions, companies, consumers) |
| | *'''scarcity''' (when "wants" exceed free availability of the good; scarcity is what makes economics meaningful) | | *'''scarcity''' (when "wants" exceed free availability of the good; scarcity is what makes economics meaningful) |
| Line 36: |
Line 37: |
| | *stated another way: '''point at which firms sell their goods (where MR=MC)''' | | *stated another way: '''point at which firms sell their goods (where MR=MC)''' |
| | *'''utility''' | | *'''utility''' |
| − | *'''net benefits''' (excess of benefits over costs) | + | *'''net benefits''' (excess of benefits over costs, as in the consumer surplus) |
| | *'''substitutes''' | | *'''substitutes''' |
| | *'''complements''' | | *'''complements''' |
| | *'''accounting profit''' (total revenue minus explicit cost) | | *'''accounting profit''' (total revenue minus explicit cost) |
| | *'''economic profit''' (total revenue minus both explicit and implicit costs) | | *'''economic profit''' (total revenue minus both explicit and implicit costs) |
| − | *'''short run''' (period when only some inputs are increased in order to increase output; e.g. overtime) | + | *'''short run''' (period when only some inputs are adjusted in order to change output; e.g. overtime) |
| − | *'''long run''' (period when any and all inputs are increased to increase output; e.g., build new stadium) | + | *'''long run''' (period when any and all inputs are adjusted to change output; e.g., build new stadium) |
| | *'''time is money''' | | *'''time is money''' |
| − | *'''inflation''', CPI (consumer price index for a "basket" of basic goods, in order to measure inflation) | + | *'''inflation''', '''CPI''' (consumer price index for a "basket" of basic goods, in order to measure inflation) |
| | *'''Gresham's Law''' (bad money drives out good) | | *'''Gresham's Law''' (bad money drives out good) |
| | | | |