Microeconomics Vocab Flashcard

Front

In a market economy, this answers "For Whom?"

Back

Price

Front

Production side choices and behaviors.

Back

Supply

Front

Consumption side choices and behaviors.

Back

Demand

Front

Condition when supply < demand for a good/service.

Back

Shortage

Front

Condition when supply exceeds demand for a good/service.

Back

Surplus

Front

Rules and laws affecting market production and consumption.

Back

Regulations

Front

Similar goods/services that can replace each other, e.g., Android or iPhone.

Back

Substitutes

Front

Goods/services used together, e.g., cereal & milk.

Back

Complements

Front

Payments or benefits from the government to businesses, e.g., payments to agricultural corporations for unsold food.

Back

Subsidies

Front

Value of expenses a business incurs for goods/services, e.g., rent paid by a barber.

Back

Costs