| A | B |
|---|
| Gresham's Law | When there are two forms of money, the bad kind will drive the good out of circulation. |
| Specie | Money in the form of coins. |
| Iron Law of Wages | As real wages increase, the population grows and eventually leaves workers worse than they before the wage increase. Ricardo. |
| Population Principle | Population increases geometrically while food increases arithmetically, therefore people always starve. Malthus. |
| Laffer Curve | Shows the maximum tax rate where people will pay; most a govenment can make from taxing. |
| Law of Demand | The higher the price of a product, the lower the demand for it. |
| Law of Supply | The amount of a given product offered is directly related to its price. |
| Production Possibilities Frontier | Shows the amount of two different goods an economy could produce with limited resources. |
| Normal Good | A good/service whose consumption/use increases with real wages, like air travel. |
| Inferior Good | A good/service whose consumption/use decreases when real wages rise, like public transportation. |
| Cyclical Unemployment | Natural increases and decreases in employment. |
| Frictional Unemployment | Standard amount of unemployment as people change jobs. |
| Marginal Utility/Cost | The amount it would cost to produce one more unit of a product. |
| Diminishing Returns | Beyond the ideal point, each additional input yields less and less output. |
| Inflation | The standard increase in the money supply. |
| Invisible Hand | Metaphor for how everyone seeking their self interest will benefit the common good. |
| Perfect Competition | Hypothetical situation where no supplier or consumer could affect market prices. |
| Fiat Money | Money that is supported by a government assurance of its value. |
