Microeconomics 1
What is a market?
What is a market?
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Flashcards
perfectly competitive market
Market with many buyers and sellers, so that no single buyer or seller has a significant impact on price.
market price
Price prevailing in a competitive market
extent of a market
Boundaries of a market, both geographical and in terms of range of products produced and sold within it.
nominal price
Absolute price of a good, unadjusted for inflation
real price
Price of a good relative to an aggregate measure of prices; price adjusted for inflation.
Consumer price index
Measure of the aggregate price level.
Producer price index
Measure of the aggregate price level.
Microeconomics
Branch of economics that deals with the behavior of individual economic units—consumers, firms, workers, and investors—as well as the markets that these units comprise.
Macroeconomics
Branch of economics that deals with aggregate economic variables, such as the level and growth rate of national output, interest rates,
unemployment, and inflation.
market
Collection of buyers and sellers that, through their actual or potential interactions, determine the price of a product or set of products.
market definition
Determination of the buyers, sellers, and range of products that should be included in a particular market.
arbitrage
Practice of buying at a low price at one location and selling at a higher price in another.
