Intro to Economics!

1. Capabilities/The capital that allows a given amount of potential output.
3. /A market dominated by a small number of firms. At least several of these firms are large enough to influence the market price.
5. /The ability to produce output.
7. /A small number of independent firms who act together to set monopoly prices and make monopoly profits.
8. increase in the overall price level.
9. amount of money paid to a worker.
11. trading of one good for another. This requires the double Coincidence of wants, a condition met when two individuals each have different goods that they other wants.

1. creation of output.
2. / A market dominated by two firms. Both firms are large enough to influence the market price.
4. Cost / All of the money a firm has to pay in order to be able to sell its products. Includes total variable costs and total fixed costs.
6. Money given by lenders to borrowers.
7. cost of living index that measures the total cost of goods and services purchased by a typical consumer within a country.
10. / The creation of a high standard of living.
12. /The income a firm makes from selling its products.
13. / When goods from one producer are exchanged for goods from another producer. In this case, goods can be very broadly interpreted.