Jingtong's Economics

28 terms by Jingtong

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wants

something that one doesn't need to survive

needs

Things one needs to survive

Market

A place were trading takes place where theres always a buyer and a seller

Economy

An economy is formed by different markets and supported by the country or a particular region

Micro-economy

The economic decisions one makes and the effects of it on the individual

Resources

Split into 3 categories: Natural, man made and human.

Natural resources

Raw material

Man made resources

Products made by humans

Human resource

Specialists e.g. Doctors

Scarce

The amount is finit, not a lot

Growth

The development of the economy

Effective demand

The level of demand that represents a real intention to purchase by people with the means to pay.

Latent demand

Something that is wanted but cannot be afforded

Cetris Paribus

With other conditions remaining the same.

Normal good

Any goods for which demand increases when the income increases and falls when the income decreases but price remains constant

Inferior good

An inferior good is the opposite of a normal good, which experiences an increase in demand along with increase in the income level.

Substitute good

One kind of good (or service) is said to be substitute good for another kind of insofar as the two kinds of good can be consumed or used inlace of one another in at least the same of their possible uses.

Complimentary good

A complimentary good, in contrast to a substitute good, is a good with a negative cross elasticity of demand.

resource allocation

used to assign the available resources in an economic way. Its part of resources management.

Excess Demand

When Demand is greater than the supply

Excess Supply

When the supply is greater than the demand (surplus)

Price Equalibrium

Where the supple and Demand equals out

Disequalibrium

A price that would not last long

Fixed cost

Costs that don't vary with the output

Variable costs

Very directly with output (e.ge wages and raw materials) TC = FC+VC

Average costs

Total costs decided by the output

Total revenue

The amount of money received from selling its output TR = Price*Quantity

Average Revenue

The average amount of money received from selling one unit of output ( AR = TR/output)

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