Study sets, textbooks, questions
Upgrade to remove ads
Econ 2001 Midterm 1 Vocab
Terms in this set (13)
The study of how people make decisions about how to allocate scarce resources.
A type of cost that is equal to the value of the next best alternative when making a decision.
A market in which fully informed, price-taking buyers and sellers easily trade a standardized good or service.
Law of Demand
There is an inverse relationship between price and quantity demanded for a particular good or service.
Law of Supply
All else held equal, the quantity supplied of a good will increase as the price increases.
A situation in a market where the quantity supplied equals the quantity demanded at a particular price.
Price Elasticity of Demand
Using percent changes to describe the size of the change in quantity demanded of a good when its price changes.
Price Elasticity of Supply
Using percent changes to describe the size of a change in quantity supplied of a good when its price changes.
Willingness to Pay
The maximum price that an individual buyer would be willing to pay for a good or service.
Willingness to Sell
The minimum price that an individual seller is willing to accept in exchange for a good or a service.
Consumer Surplus (CS)
The difference between a buyer's willingness to pay for a good and the actual price.
Producer Surplus (PS)
The difference between a producer's willingness to sell a good and the actual price.
An arrangement such that no exchange can make anyone better off without someone becoming worse off.
Recommended textbook explanations
Principles of Microeconomics
N. Gregory Mankiw
Essentials of Economics
N. Gregory Mankiw
EconPortal for Macroeonomics (access card)
Intermediate Microeconomics: A Modern Approach
Hal R. Varian
Sets with similar terms
AP Econ Unit 2a
AP Macroeconomics, Section 2
Supply and Demand: AP Macroeconomics
Econ Exam 1
Other sets by this creator
Construction Midterm 2
Philosophy 1332 Exam 2 Vocab
philosophy 1332 exam 1
econ 2001 final vocab
According to a recent survey, Americans get a mean of 7 hours of sleep per night. A random sample of 50 students at West Virginia University revealed the mean number of hours slept last night was 6 hours and 48 minutes. The standard deviation of the sample was 0.9 hours. Is it reasonable to conclude that students at West Virginia sleep less than the typical American? Compute the p-value
Does monetary policy or fiscal policy most directly affect the economy? Why?
Why is it difficult to measure the value of community organizations and cooperatives?
Under the liquidity preference theory, if inflation is expected to be falling over the next few years, long-term interest rates will be higher than short-term rates. True/false/ uncertain? Why?
Other Quizlet sets
RC quiz 74-76
PHI 105 Exercise 5
Micro Exam 1