A linear relationship showing how increases in disposable income cause increases in savings.

The imbalance between limited productive resources and unlimited human wants. Because economic resources are scarce, the goods and services a society can produce are also scarce.

Final goods and services that are resold. Even if they are resold many times, final goods and services are only counted once, in the year in which they were produced.

When firms focus their resources on production of goods for which they have comparative advantage, they are said to be specializing.

Additional benefits to society, not captured by the market demand curve from the production of a good, resulting in a price that is too high and a market quantity that is too low.

Additional to society, not captured by the market supply curve from the production of a good, result in a price that is too low and market quantity that is too high.

A situation in the macroeconomy when inflation and the unemployment rate are both increasing.

If price levels do not change, especially downward, with changes in ad, then prices are thought of as sticky or inflexible. Keynesians believe the price level does not usually fall with contractionary policy.

A certificate that represents a claim to, or share of, the ownership of a firm.

Two goods are consumer substitutes if they provide essentially the same utility to the consumer.