Category: Principles of Economics FAQS

The difference between what a consumer is willing to pay and what they actually pay.

The satisfaction or benefit a consumer receives from consuming a good or service.

Perfect Competition, Monopoly, Oligopoly, and Monopolistic Competition.

A measure of how sensitive demand is to changes in price.

As price increases, supply increases; as price decreases, supply decreases.

As price decreases, demand increases; as price increases, demand decreases.

The study of individual consumers, firms, and markets.

Capitalism, Socialism, and Mixed Economy.

Positive Economics deals with facts, while Normative Economics is based on opinions and values.

The value of the next best alternative that is given up when making a choice