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Free Market Economics

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Free Market Economics

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1. Competitive Price System

A Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcApportionment Of Productive Assets Among Different UsesGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or Not

2. Market Demand Curve

An Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductApportionment Of Productive Assets Among Different Uses

3. Public Goods

A Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductApportionment Of Productive Assets Among Different UsesGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - Etc

4. Allocation Of Resources

5. Shift In Demand

An Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotA Change In The Quantity Of A Good Or Service Consumers Are Willing And Able To Buy At Every Price Level

6. Diminishing Returns

A Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductThe Decrease In The Yield Of A Production Process As One Input Of That Production Process Increases - When All Other Variables Of That Production Remain ConstantAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or Not

7. Supply Curve

An Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductA Curve - Usually Sloping Upward To The Right - Showing The Relationship Between A Product's Price And The Quantity Supplied Of The Product

8. Equilibrium Price

A Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductA Price That Shows No Tendency For Change - Because It Is The Price At Which The Quantity Demanded Equals The Quantity Supplied. The Price Toward Which The Actual Price Of A Good Always Tends To MoveGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - Etc

9. Shifts In The Supply And Demand Curves

An Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcConsumer Or Producer Willingness And Ability To Produce Or Consume Goods And Services Shifts At Every Price LevelA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or Not

10. Non-exclusion

A Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcThe Concept Whereby It Is Not Possible To Keep Those Who Have Not Paid For A Good From Having Access To It And Using ItGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or Not

11. Marginal Product Of Labor

An Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotThe Additional Output Resulting From The Addition Of An Extra Unit Of Labor

12. Technological Change

New Methods Of Producing Existing Products - New Designs That Make It Possible To Produce New Products - And New Techniques Of Organization - Marketing - And ManagementAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or Not

13. Profit

The Difference Between A Firm's Revenue And Its CostsGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The Product

14. Marginal Utility

A Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductThe Additional Satisfaction Derived From Consuming An Additional Unit Of A CommodityAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or Not

15. Free Market

An Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotFree Market Is An Idealized System In Which The Prices For Goods And Services Are Determined By The Open Market And Consumers In A Which The Laws And Forces Of Supply And Demand Are Free From Any Intervention By A Government.

16. Market Supply Curve For Labor

Goods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductA Curve Showing The Relationship Between The Price Of Labor And The Total Amount Of Labor Supplied In The MarketAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - Etc

17. Market Failure

Goods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotInefficient Allocation Of Goods And Services By The Market. Efficient Allocation Of Goods And Services Means There Is No Other Outcome Under Which A Market Participant Can Be Made Better Off - Without Making Someone Else Worse Off. Market Failures Are Often Used As A Justification For Government Intervention In An EconomyAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The Product

18. Specialization

The Usage Of Economic Resources For Specific Tasks; "Resources" Can Refer To Materials Or LaborGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - Etc

19. Free Riders

An Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotThose That Enjoy The Benefits Of A Collective Effort - While Having Contributed Nothing To That Collective Effort

20. Law Of Diminishing Marginal Returns

The Principle That If Equal Increments Of A Given Input Are Added (The Quantities Of Other Inputs Being Held Constant) - The Resulting Increments Of Product Obtained From The Extra Unit Of Input (The Marginal Product) Will Begin To Decrease Beyond Some PointAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The Product

21. Tax Distortions

Inefficiencies In The Free Market - Resulting From The Imposition Of TaxesAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or Not

22. Price Controls

A Maximum Or Minimum Cost Established By A Government For A Particular GoodAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The Product

23. Rent Controls

A Maximum Price Imposed By Government On How Much Someone May Charge A Tenant For A Rental PropertyA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - Etc

24. Invisible Hand

An Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcThe Self-regulating Nature Of A Free-market System - As Coined By Economist Adam SmithGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or NotA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The Product

25. Variable Input

A Resource Used In The Production Process (Such As Labor Or Raw Material) Whose Quantity Can Be Changed During The Particular Period Under ConsiderationAn Arrangement Of Manufacturers In Constant Contest With One Another To Make Their Prices For Their Products The Most Attractive - Either Simply By Lowering Them Or By Adding Incentives - E.G. - Payment Plans - EtcA Curve - Usually Sloping Downward To The Right - Showing The Relationship Between A Product's Price And The Quantity Demanded Of The ProductGoods And Services Which Can Be Consumed By One Person Without Diminishing The Amount Of Them That Others Can Consume And Which There Is No Way To Prevent Citizens From Consuming - Whether They Pay For Them Or Not

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25 Questions

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Without work one finishes nothing. - Ralph Waldo Emerson
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