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Textbooks / Business / ALL ACCESS MNGT 4400 MATERIAL DELIVERED ON CANVAS AND CHARGED TO EBILL-NO IN STORE PURCHASE REQUIRED

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ISBN: 281000000480B

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Textbook: ALL ACCESS MNGT 4400 MATERIAL DELIVERED ON CANVAS AND CHARGED TO EBILL-NO IN STORE PURCHASE REQUIRED
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ISBN: 281000000480B

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Key Business Terms and definitions covered in this textbook
  • closed economy

    an economy that does not interact with other economies in the world

  • consumption

    spending by households on goods and services, with the exception of purchases of new housing

  • cost

    the value of everything a seller must give up to produce a good

  • discrimination

    the offering of different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics

  • economic profit

    total revenue minus total cost, including both explicit and implicit costs

  • economics

    the study of how society manages its scarce resources

  • game theory

    the study of how people behave in strategic situations

  • Giffen good

    a good for which an increase in the price raises the quantity demanded

  • income effect

    the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve

  • inferior good

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

  • law of supply and demand

    the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance

  • liquidity

    the ease with which an asset can be converted into the economy’s medium of exchange

  • maximin criterion

    the claim that the government should aim to maximize the well-being of the worst-off person in society

  • price elasticity of demand

    a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price

  • price floor

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

  • prisoners’ dilemma

    a particular “game” between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial

  • public goods

    goods that are neither excludable nor rival in consumption

  • purchasing-power parity

    a theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries

  • rivalry in consumption

    the property of a good whereby one person’s use diminishes other people’s use

  • value of the marginal product

    the marginal product of an input times the price of the output