Economics Ch 7 Market Structure

profit – n. the financial gain a seller makes from a business transaction (p. 49); the money left over after the costs of producing a product are subtracted from the income gained by selling that product (p. 78)
Basic Model of Economic Growth: Change in Capital Stock – Δ K = I – (dK)
Change in Capital Stock= Investment – Depreciation of Capital

– d = Depreciation rate

Describe health measures. – LIFE EXPECTANCY AT BIRTH:
•average number of years that a person may expect to live from the time they are born.
•measure of the number of deaths of babies under the age of one year per thousand live births in a given year.
traditional economy – People produce what people need to survive
by farming, hunting, and/or gathering. The get their products by making their own.
suppliers – поставщики
Diminishing Marginal Benefit – The more you have of something, the less the last unit benefits you, and the less you are willing to pay.
Market economy – Individual consumers and producers made decisions(capitalism)
The opportunity cost of holding money refers to:
Renewable – a natural resource that can be replaced
monopoly – market dominated by single firm, barriers to entry, abnormal profit in both long and short run
Bear Market – A steady drop or stagnation in the stock market over a period of time.
Sin tax – Relatively high tax designed to discourage certain activities
economics – the study of how people, businesses and governments choose to use their limited resources to satisfy their unlimited wants
Efficiency – Using resources in such a way as to maximize the production of goods and services
The оppоrtunity cоst of holding money refers to:
command economy – an economic system in which the government makes all economic decisions.
deflation – Rückgang der Preise für Produkte und Dienstleistungen
Economically more developed countries – Common characteristics: High levels of GDP per capita, relatively low levels of poverty, small agricultural sectors, and large industrial and services sectors.
private – the sector (private or public) in which most of the savings are needed to fund R&D

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