Study sets matching "3 micro biology"
Study sets
Classes
Users
Full employment
Unemployment (not fully efficient)
Demand
Demand Conditions (Peoples wants)
What does the blue line mean in the image?
If the point is in the yellow, what is it?
What factor does a Production Possibility Frontier leave out?
What information on the Production Possibilities Frontier woul…
Full employment
What does the blue line mean in the image?
Unemployment (not fully efficient)
If the point is in the yellow, what is it?
External Cost
External Benefits
Pollution
Benefits of Waste Discharge
Cost that is a third party pays for things that the buyer and…
benefits that are received by those not immediately involved i…
Addition of more waste than a resource can accommodate. Air, w…
Cheaper way of discharge. Does not cost anything to the firm b…
External Cost
Cost that is a third party pays for things that the buyer and…
External Benefits
benefits that are received by those not immediately involved i…
Oligopoly
Collusive oligopoly
Overt Collusion
Tacit Leadership
a market in which a few firms produce all or most of the marke…
oligopoly in which two or more than two firms are making an ag…
- cartels are illegal in most countries... - cartel members under…
- price leadership... - is when one firm is when one firm is domi…
Oligopoly
a market in which a few firms produce all or most of the marke…
Collusive oligopoly
oligopoly in which two or more than two firms are making an ag…
Hit and run competition
Mandated choice
Average total cost
Divorce of ownership from control
occurs when a new entrant can "hit" the market, make profits a…
people are required by law to make a decision
AFC+AVC
the owners and those who manage the firm are different groups…
Hit and run competition
occurs when a new entrant can "hit" the market, make profits a…
Mandated choice
people are required by law to make a decision
Merit good
De-merit goods
Externalities
Negative externalities
Product, such as education, which consumers may undervalue, bu…
For example alcohol, consumers may overvalue but but governmen…
The third party benefit or cost from the public good/service.
Where the marginal social cost outweighs the marginal social b…
Merit good
Product, such as education, which consumers may undervalue, bu…
De-merit goods
For example alcohol, consumers may overvalue but but governmen…
substitution effect
income effect
price elasticity of demand
midpoint method
the change in the quantity of that good demanded as the consum…
the change in the quantity of that good demanded that results…
the ratio of the percent changed in the quantity demanded to t…
a technique for calculating the percent change
substitution effect
the change in the quantity of that good demanded as the consum…
income effect
the change in the quantity of that good demanded that results…
market
competitive market
quantity demanded
law of demand
a group of buyers and sellers of a particular good or service
a market in which there are many buyers and many sellers so th…
the amount of a good that buyers are willing and able to purch…
the claim that, other things being equal, the quantity demande…
market
a group of buyers and sellers of a particular good or service
competitive market
a market in which there are many buyers and many sellers so th…
What is the supply and demand model?
Demand
Demand curve
Demand schedule
Model of how competitive the market behaves
is the actual amount of a good or service consumers are willin…
is a graphical representation of the demand schedule. It shows…
What is the supply and demand model?
Model of how competitive the market behaves
Demand
is the actual amount of a good or service consumers are willin…
market work
nonmarket work
leisure
substitute effect of a wage increase
time sold as labor... -Marx and Engels
time spent getting an education or producing goods and service…
time spent on nonwork activities
a higher wage encourages more work because other activities no…
market work
time sold as labor... -Marx and Engels
nonmarket work
time spent getting an education or producing goods and service…
Scarcity
economics
efficiency
equality
the limited nature of society's resources
the study of how society manages its scare resources
the property of society getting the most it can from its scarc…
the property of distributing economic prosperity uniformly amo…
Scarcity
the limited nature of society's resources
economics
the study of how society manages its scare resources
perfect competition
monopoly
monopolistic competition
oligopoly
each firm faces many competitors that sell identical products
a firm that faces no competitors
many firms competing to sell similar but differentiated produc…
when a few firms have all or nearly all of the sales in an ind…
perfect competition
each firm faces many competitors that sell identical products
monopoly
a firm that faces no competitors
price-maker
market power
monopoly
barriers to entry
a seller that sets the price of a good
relates to the ability of sellers to affect prices
an industry structure in which only one seller provides a good…
provide a seller with protection from potential competitors en…
price-maker
a seller that sets the price of a good
market power
relates to the ability of sellers to affect prices
open market
closed market
barrier 1
barrier 2
market with no barriers to entry or exit
market with some barriers to entry or exit
government barriers (patents, medallions, licenses, codes)
natural barrier - the size necessary to be competitive is proh…
open market
market with no barriers to entry or exit
closed market
market with some barriers to entry or exit
4 ways to allocate resources
Market
Barter exchange
2 problems with bater exchange
1.) Price/Market system... 2.) First come, fist serve... 3.) Governm…
A place where buyers & sellers exchange G/S... ex. stock market s…
the direct exchange of G/S without the use of money
Double coincidence of wants... High transaction cost
4 ways to allocate resources
1.) Price/Market system... 2.) First come, fist serve... 3.) Governm…
Market
A place where buyers & sellers exchange G/S... ex. stock market s…
Production
Short-run production
Long-run production
Productivity
Converts inputs or factor services into outputs of goods and s…
Occurs when a firms adds variable factors of production to fix…
Occurs when a firm changes the scale of all the factors of pro…
Output per unit of input
Production
Converts inputs or factor services into outputs of goods and s…
Short-run production
Occurs when a firms adds variable factors of production to fix…
Market Demand (based on consumer choice)
Market Supply (based on factors of prod…
Market Supply (based on production and…
Market Demand (factors of production)
1. price of the good (endogenous)... 2. number of consumers (ex)…
1. wage (endogenous)... 2. preference between work and leisure (e…
1. Price from output (endogenous)... 2. Price for labor of any ot…
1. wage rate (endogenous)... 2. price of the output (ex)... 3. produ…
Market Demand (based on consumer choice)
1. price of the good (endogenous)... 2. number of consumers (ex)…
Market Supply (based on factors of prod…
1. wage (endogenous)... 2. preference between work and leisure (e…
adverse selection problem
direct regulation
efficient
effluent fees
a problem that occurs when buyers and sellers have different a…
a program in which the amount of a good people are allowed to…
achieving a goal at the lowest cost in total resources without…
charges imposed by government on the level of pollution created
adverse selection problem
a problem that occurs when buyers and sellers have different a…
direct regulation
a program in which the amount of a good people are allowed to…
ABSOLUTE advantage is determined by
A country will export
A country will import
If one country has absolute advantage i…
which country has the greater production level for the good
the good that they have an advantage in
the good that another country has an advantage in
then NO trade will occur
ABSOLUTE advantage is determined by
which country has the greater production level for the good
A country will export
the good that they have an advantage in
An extreme market structure with a sing…
Monopolies arise _________ and through…
Who are price makers?
Monopolists produce at the point where
Monopoly
natural ; government protection
Monopolists
marginal revenue equals marginal cost
An extreme market structure with a sing…
Monopoly
Monopolies arise _________ and through…
natural ; government protection
Competitive Market
Money Price
Relative Price
Quantity demanded
A market that has many buyers and many sellers, so no single b…
The price of an object is the number of dollars that must be g…
The ratio of one price to another
the amount that consumers plan to buy during a given time peri…
Competitive Market
A market that has many buyers and many sellers, so no single b…
Money Price
The price of an object is the number of dollars that must be g…
Factor Market
Product Market
Supply
Demand
any place where factors of production are brought and sold
any place where finished goods and services are bought and sold
ability and willingness to sell specific quantities of a good…
ability and willingness to buy specific quantities of a goods…
Factor Market
any place where factors of production are brought and sold
Product Market
any place where finished goods and services are bought and sold
Efficient
deadweight loss
explicit costs
accounting profit
a situation is efficient if no change is possible that will he…
the reduction in total economic surplus that results from the…
the actual payments a firm makes to its factors of production…
the difference between a firm's total revenue and its explicit…
Efficient
a situation is efficient if no change is possible that will he…
deadweight loss
the reduction in total economic surplus that results from the…
Law of Demand
quantity demanded
Shifts in demand curve
change in demand
states that other things equal the quantity demanded of a good…
the amount of a good that buyers are willing and able to purch…
-consumer income... -number of buyers... -prices of related goods... -e…
caused by any change that alters the quantity demanded at ever…
Law of Demand
states that other things equal the quantity demanded of a good…
quantity demanded
the amount of a good that buyers are willing and able to purch…