Mr. Ok Econ

Created by jurassicdave 

Upgrade to
remove ads

21 terms

Needs

Needs are the basic and fundamental things that humans need to survive.

Capital

Large sum of money which people use to start a business or invest to make money.

Labour

Hard work, usually physical.

Macroeconomics

The branch of economics concerned with aggregates, such as national income, consumption and investment.

Microeconomics

The branch of economics concerned with particular commodities, firms or individual.

Elasticity

The measurement of how changing one economic variable affects others.

Total revenue

Total receipts of a firm from the sale of any given quantity of a product.

Equilibrium Price

Price where supply and demand are equal.

Elastic demand

Change in price result in a greater change in demand.

Production Possibility Curve (PPC)

Line shows the different combinations of two goods an aconomy can produce if all resources are used up.

Diseconomies of scale

Average costs rise when a firm becomes too big.

Economies of scale

Average costs fall due to expansion of a firm.

Internal economies of scale

Cost benefit that an individual firm can have when it expands.

Scale

Size of business.

Minimum efficient scale (MES)

Size of plant when the average cost is minimized.

External econmoies of scale

Cost benefit that all firms in industry can have when it expands.

Average cost

Cost per unit of output (Total cost/Quantity produced)

Costs

Money used when producing goods or services

Fixed costs

Costs that do not vary with level of output.

Variable costs

costs that rise when output are increased.

Total cost

Fixed cost + Variable cost

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

NEW! Voice Recording

Click the mic to start.

Create Set