Study sets matching "3 micro biology"
Study sets
Diagrams
Classes
Users
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
Law of Demand
Change in Demand
Normal good
Inferior good
As price ⬇, Qd ⬆ ... - inverse relationship (negative)... - demand c…
- when the demand curve shifts to a new demand curve ... - why? w…
Goods for which ⬆ demand when ⬆ income ... - ex. normal clothes
Goods for which ⬇ demand when ⬆ income.... - ex. Top Ramen
Law of Demand
As price ⬇, Qd ⬆ ... - inverse relationship (negative)... - demand c…
Change in Demand
- when the demand curve shifts to a new demand curve ... - why? w…
Economic profit
Normal/Accounting profit
Production function
Fixed input
Economic Profit= Total Revenue - (explicit +implicit costs ) T…
Accounting Profit= Total revenue- explicit costs
the relationship between the quantity of inputs a firm uses an…
an input whose quantity is fixed for a period of time and cann…
Economic profit
Economic Profit= Total Revenue - (explicit +implicit costs ) T…
Normal/Accounting profit
Accounting Profit= Total revenue- explicit costs
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…
market economy
command economy
invisible hand
market failure
economy in which decisions about production and consumption ar…
central authority making decisions about production and consum…
refers to the way in which the individual pursuit of self-inte…
when the individual's pursuit of self-interest leads to bad re…
market economy
economy in which decisions about production and consumption ar…
command economy
central authority making decisions about production and consum…
Scarcity
Economics
Tradeoff
Guns vs. Butter
the limited nature of society's resources
study of how society manages its scarce resources, time is inc…
in order to get what you want you have to give up something el…
guns = national security... butter = social equality items ... ex:…
Scarcity
the limited nature of society's resources
Economics
study of how society manages its scarce resources, time is inc…
Proprietorship
Partnership
Corporation
Ways for a firm to acquire financing
owned and operated by one individual. ... Advantage: easy to form…
firm owned by two or more co owners... Advantage: partnership pro…
organization owned by stockholders that is considered a legal…
1. issue stock ownership... 2. sell bonds ... 3. use retained earnin…
Proprietorship
owned and operated by one individual. ... Advantage: easy to form…
Partnership
firm owned by two or more co owners... Advantage: partnership pro…
Perfectly elastic
A single seller in a competitive market…
Perfectly inelastic
A life or death good with no alternativ…
1. completely horizontal demand line... 2. elasticity of demand =…
elastic ... (In a market, all buyers and sellers determine equil…
1. vertical demand line... 2. elasticity of demand = 0... 3. one qua…
inelastic
Perfectly elastic
1. completely horizontal demand line... 2. elasticity of demand =…
A single seller in a competitive market…
elastic ... (In a market, all buyers and sellers determine equil…
Marginal Cost
Average Variable Cost
Average Total Cost
Output Function
% change in TC/% change in Q
Variable Cost/Output Quantity If TR is below AVC - Shutdown -…
TC/Q -or- AFC + AVC
Labor + Capital = Output
Marginal Cost
% change in TC/% change in Q
Average Variable Cost
Variable Cost/Output Quantity If TR is below AVC - Shutdown -…
Market work
Non market work
leisure
Substitute effect of a wage increase
Time sold as labor
Time spent getting an education or producing goods and service…
Time spent on nonwork activities ... (work and utility: utility v…
A higher wage encourages more work because other activities no…
Market work
Time sold as labor
Non market work
Time spent getting an education or producing goods and service…
Explicit Cost
Implicit Cost
Elasticity of Supply
Accounting Costs
Any input (element of cost) for which the firm needs to make a…
Any input (element of cost) for which NO payment is necessary…
Measures the degree of responsiveness of the QUANTITY SUPPLIED…
Explicit Costs only
Explicit Cost
Any input (element of cost) for which the firm needs to make a…
Implicit Cost
Any input (element of cost) for which NO payment is necessary…
Four ways to allocate resources and G/S
Market
Barter Exchange
Relative Prices
Prices/Market System, First Come first serve, Government Dicta…
a place where buyers and sellers exchange G/S
The direct exchange of goods or services for another good or s…
The price of one good expressed in terms of the price of anoth…
Four ways to allocate resources and G/S
Prices/Market System, First Come first serve, Government Dicta…
Market
a place where buyers and sellers exchange G/S
welfare economics
willingness to pay
consumer surplus
consumer surplus
the study of how the allocation of resources affects economic…
measure how much that buyer values the good
is the amount a buyer is willing to pay for a good minus the a…
measures the benefit buyers receive from participating in a ma…
welfare economics
the study of how the allocation of resources affects economic…
willingness to pay
measure how much that buyer values the good
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…
Price Maker
Barriers to Entry
Natural Monopoly
Economies of Scale
In terms of pricing, monopoly firms are a __________ with NO c…
Cause of Monopoly Markets such as ownership of a key resource,…
When the costs of production makes a single producer more effi…
When _______ are a cause of monopoly, it is because Average To…
Price Maker
In terms of pricing, monopoly firms are a __________ with NO c…
Barriers to Entry
Cause of Monopoly Markets such as ownership of a key resource,…
Demand Curve
Substitution Effect
Income Effect
Buyer's Reservation Price
A schedule or graph showing the quantity of a good that buys w…
the change in the quantity demanded of a good that results bec…
the change in the quantity demanded of a good that results bec…
the largest dollar amount the buyer would be willing to pay fo…
Demand Curve
A schedule or graph showing the quantity of a good that buys w…
Substitution Effect
the change in the quantity demanded of a good that results bec…
Definition of Market
Definition of Demand
Demand Schedule
Law of Demand
The worlds commercial activity where goods and services are bo…
"the want or desire to possess a good or service with the nece…
A table of prices versus quantities for a specific item.
This is the negative/ inverse relationship between price and q…
Definition of Market
The worlds commercial activity where goods and services are bo…
Definition of Demand
"the want or desire to possess a good or service with the nece…
Why do we buy stuff?
Utility
Utility Facts
Total Utility
To maximize utility
The satisfaction a consumer obtains from the consumption of a…
-Utility is measured in utils ... -We CANNOT compare the utils as…
The total satisfaction a person derives from consuming some sp…
Why do we buy stuff?
To maximize utility
Utility
The satisfaction a consumer obtains from the consumption of a…
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…
Chapter 10
pure competition
pure competition breakdown
pure monopoly
Chapter 10
involves a very large number of firms producing a standardized…
- # of firms: large number... - standardized ... - control over pric…
is a market structure in which one firm is the sole seller of…
Chapter 10
Chapter 10
pure competition
involves a very large number of firms producing a standardized…
quantity supplied
supply
supply function
supply curve
amount of commodity producers are willing, able, and planning…
amount of commodity producers are willing, able, and planning…
mathematical/quantitative relation between price and quantity…
shows relation between quantity supplied and price, being a gr…
quantity supplied
amount of commodity producers are willing, able, and planning…
supply
amount of commodity producers are willing, able, and planning…
Consumer Theory
Consumption Bundle
Consumer Optimization
Demand Curve
The study of how people decide what to spend their money on gi…
A set of goods or services a consumer is considering to purcha…
The principle that consumers seek to maximized their utility u…
A graph showing how the demand for a commodity or service chan…
Consumer Theory
The study of how people decide what to spend their money on gi…
Consumption Bundle
A set of goods or services a consumer is considering to purcha…