The price where the quantity demanded by buyers equals the quantity supplied by sellers.
Equilibrium price (均衡价格)
The price where the quantity demanded equals the quantity supplied.
Excess Demand (超额需求)
When the quantity demanded is greater than the quantity supplied (shortage).
Excess Supply (超额供给)
When the quantity supplied is greater than the quantity demanded (surplus).
Excess demand (超额需求)
The situation where demand is greater than supply.
Excess supply (超额供给)
The situation where supply is greater than demand.
Extension in demand (需求扩展)
A rise in quantity demanded because the product’s price has fallen.
Extension in supply (供给扩展)
A rise in quantity supplied because the product’s price has risen.
Externality
A cost or benefit that affects people who are not part of the market transaction.
Factors of production (生产要素)
The inputs used to produce goods and services (land, labour, capital, and entrepreneurship).
Fiscal Policy
Government decisions about taxes and spending.
GDP
The total value of goods and services made in a country in one year.
Improvements in technology (技术进步)
Better machines and methods that make production more efficient.
Increase in demand (需求增加)
More of the product is demanded at every price, shifting the demand curve to the right.
Increase in supply (供给增加)
More of the product is supplied at every price, shifting the supply curve to the right.
Inferior goods
Demand decreases when consumer income increases (because you have more money, so you can go buy the better option).
Inflation
A general rise in prices over time.
Labour (劳动力)
The human effort, both physical and mental, used to produce goods and services.
Labour Intensive (劳动密集型)
A production process that uses more human labour than machinery.
Land (土地)
All natural resources used in production (e.g., water, oil, forests).
Latent demand (潜在需求)
When consumers want a product but cannot afford to buy it.
Macroeconomics (宏观经济学)
The study of the economy as a whole (e.g., inflation, national income, unemployment).
Marginal Cost
change in cost for producing one more thing.
Marginal Revenue
extra revenue earned by selling one more unit.
Marginal Tax Rate
change in total taxes owed if income goes up one more dollar.
Market
A place or system where buyers and sellers exchange goods or services.
Market (市场)
Any arrangement that allows buyers and sellers to exchange goods and services.
Market demand (市场需求)
The total demand for a product from all consumers.
Market disequilibrium (市场失衡)
When market demand does not equal market supply.
Market equilibrium (市场均衡)
The point where market demand equals market supply.
Market supply (市场供给)
The total supply of a product from all producers.
Microeconomics (微观经济学)
The study of how individuals and businesses make decisions and interact in markets.
Mixed economics system (混合经济体系)
An economic system where both the government and private individuals make decisions.
Monetary Policy
Central bank actions that control money supply and interest rates.
Multinational companies (跨国公司)
Companies that have operations in more than one country.
Needs (需求)
Things you must have to survive, like food, water, and shelter.
Normal goods
Demand increases when consumer income increases.
Normative Statement
A claim about the economy that is based on opinions or values and cannot be tested as true or false.
Opportunity Cost (机会成本)
The value of the next best choice you give up when you make a decision.
PPF
Production Possibility Frontier. The graph of what can be produced between two options. What is the opportunity cost of Option A? What is the opportunity cost of Option B? (Also called PPC).
Positive Statement
A claim about the economy that can be tested and proven true or false using evidence.
Price (价格)
The amount of money paid for a good or service.
Price Ceiling
A maximum price set by the government.
Price Floor
A minimum price set by the government.
Primary Sector/Primary Industry (第一产业)
Industries that extract raw materials from the earth (e.g., farming, fishing, mining).
Private Goods
Goods that can only be used by one person at a time and are owned by individuals.
Private Sector (私营部门)
The part of the economy owned and controlled by individuals and companies.
Production Possibility Curve (生产可能性曲线)
A graph that shows the maximum amount of two goods an economy can produce with its available resources.
Productivity
How much output is made per unit of input, like per worker or per hour.
Public Goods
Goods that anyone can use and are not reduced when more people use them.
Public Sector (公共部门)
The part of the economy owned and controlled by the government.
Public sector (公共部门)
The part of the economy that is controlled by the government.
Recession
A period when the economy gets smaller for at least two quarters (six months) in a row.
Scarcity (稀缺性)
The idea that resources (like time, money, materials) are limited, but people’s wants are unlimited.
Secondary Sector/Secondary Industry (第二产业)
Industries that process raw materials into finished goods (e.g., manufacturing, construction).
Shift in the demand curve (需求曲线的移动)
When the entire demand curve moves left or right because of a factor other than the product’s own price.
Stakeholder (利益相关者)
Any person or group who is affected by or has an interest in a business or economic activity. For example, in agriculture, stakeholders include farmers, buyers, and the government.
Subsidy (补贴)
Money given by the government to help reduce the cost of producing something.
Substitute Goods (替代品)
Products that can be used in place of each other (e.g., butter and margarine).
Supply
The amount of goods or services that sellers are willing to sell.
Supply (供给)
The willingness and ability to sell a product at a given price.
Supply Curve (供给曲线)
A line on a graph that shows how much of a product producers will sell at different prices.
Supply determinants (供给决定因素) STORES
Factors that can change supply (Subsidies and taxes, Technology, Other related goods, Resource cost, Expectations, Size of market).
Tariff
A tax on imported goods.
Tax (税)
A required payment to the government.
Tertiary Sector/Tertiary Industry (第三产业)
Industries that provide services (e.g., retail, banking, tourism).
Trade
The buying and selling of goods and services between people, firms, or countries.
Unemployment (失业)
When people who are willing and able to work cannot find a job.
Wants (欲望)
Things you wish to have, but do not need to survive.