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any good that is owned by an individual or a business |
private property |
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any good that is owned by the government |
public property |
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an economic unit of one person or more that sells resources and buys goods and services |
household |
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the economic relationships that exist between different economic groups in an economy |
circular flow of economic activity |
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the amount of money left over after all the costs of production have been paid. profit exists whenever total revenue is greater than total cost |
profit |
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the amount of money by which total cost exceeds total revenue |
loss |
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the principles of conduct, such as right and wrong, morality and immorality, good and bad |
ethics |
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an agreement between two or more people to do something |
contract |
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a good of which one person's consumption takes away from another person's consumption |
private good |
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a good of which one person's consumption does not take away form another person's consumption |
public good |
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a public good that individuals can be excluded (physically prohibited) from consuming |
excludable public good |
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a public good that individuals cannot be excluded (physically prohibited) from consuming |
nonexcludable public good |
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a person who receives the benefits of a good without paying for it |
free rider |
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an adverse side effect of an act that is felt by others |
negative externality |
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a beneficial side effect of an action that is felt by others |
positive externality |
