# Study sets matching "cfa econ"

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Own Price Elasticity

Elastic

Inelastic

Straight Line Demand Curve

If absolute value of the above >1, demand is ____

If absolute value of above is <1, demand is ____

On ____ _____ _____ _____,total revenue is maximized where pri…

Own Price Elasticity

Elastic

If absolute value of the above >1, demand is ____

own price elasticity of demand

Income elasticity of demand

Cross price elasticity of demand

MR

%change Qdx/%change Px... (changeQdx/changePx)*(px/Qdx)

%changeQdx/%changeI

Edy=%changeQdx/%changePy

Change in total rev/change in quant... P[1- (1/e)]

own price elasticity of demand

%change Qdx/%change Px... (changeQdx/changePx)*(px/Qdx)

Income elasticity of demand

%changeQdx/%changeI

Price Elasticity of Demand Formula

Cross Elasticity of Demand Formula

Income Elasticity of Demand Formula

Price Elasticity of Supply Formula

(% Change in Quantity Demanded) / (%t Change in Price)

(% Change in Quantity Demanded) / (% Change in Price of Substi…

(% Change in Quantity Demanded) / (% Change in Income)

(% Change in Quantity Supplied) / (% Change in Price)

Price Elasticity of Demand Formula

(% Change in Quantity Demanded) / (%t Change in Price)

Cross Elasticity of Demand Formula

(% Change in Quantity Demanded) / (% Change in Price of Substi…

own-price elasticity of demand

inelastic

elastic

greater

The percentage change in quantity demanded for a percentage ch…

when there are few or no good substitues for a good, demand te…

the larger the proportion of income spent on a good, the more…

elasticity of demand tends to be (greater or less) the longer…

own-price elasticity of demand

The percentage change in quantity demanded for a percentage ch…

inelastic

when there are few or no good substitues for a good, demand te…

inverse demand function

What is vertical intercept of demand cu…

What is slope of demand curve? QD = 6.3…

private value auction

15.90

PQ = 15.90 - 2.5QD so demand curve slope is -2.5

An auction in which the value of the item being auctioned is u…

inverse demand function

What is vertical intercept of demand cu…

15.90

What are the obstacles to the Efficient…

Describe the law of demand

Describe the law of supply

What is partial equilibrium analysis?

Price controls, taxes and trade restrictions, external costs,…

The quantity demanded typically increases at lower prices

A greater quantity is supplied at higher prices

Partial equilibrium analysis assumes that all factors influenc…

What are the obstacles to the Efficient…

Price controls, taxes and trade restrictions, external costs,…

Describe the law of demand

The quantity demanded typically increases at lower prices

Marginal product is at a maximum when...

Sources of sustainable long-run economi…

Price ceiling will most likely cause:

Monopolistic Competition

marginal cost is at a minimum

labor force, human capital, stock of physical capital, supply…

market shortage; restrict the producer from increasing selling…

price is greater than marginal cost

Marginal product is at a maximum when...

marginal cost is at a minimum

Sources of sustainable long-run economi…

labor force, human capital, stock of physical capital, supply…

Own Price Elasticity

Elastic

Inelastic

Straight Line Demand Curve

If absolute value of the above >1, demand is ____

If absolute value of above is <1, demand is ____

On ____ _____ _____ _____,total revenue is maximized where pri…

Own Price Elasticity

Elastic

If absolute value of the above >1, demand is ____

Own Price Elasticity

Elastic

Inelastic

Straight Line Demand Curve

If absolute value of the above >1, demand is ____

If absolute value of above is <1, demand is ____

On ____ _____ _____ _____,total revenue is maximized where pri…

Own Price Elasticity

Elastic

If absolute value of the above >1, demand is ____

Own Price Elasticity

Elastic

Inelastic

Straight Line Demand Curve

If absolute value of the above >1, demand is ____. On graph pe…

If absolute value of above is <1, demand is ____. on graph per…

On ____ _____ _____ _____,total revenue is maximized where pri…

Own Price Elasticity

Elastic

If absolute value of the above >1, demand is ____. On graph pe…

Factors of production

Production function

What decisions about factors of product…

What objective should guide the firm in…

The inputs to the production of goods and services (land, labo…

Q = f(K,L)... The relationship between the flow of output and the…

Entrepreneurs must decide where to locate the manufacturing fa…

Any decision involving input factors should focus on how that…

Factors of production

The inputs to the production of goods and services (land, labo…

Production function

Q = f(K,L)... The relationship between the flow of output and the…

One Third Rule

Classical Growth Theory

Neo-Classical Growth Theory

New Growth Theory

- At given technology level, 1% increase in capital/labor hour…

- Real GDP growth temporary (RGDP/person increase above subsis…

- No technological change -> no RGDP growth.... - Technology chan…

- Economic growth continues indefinitely as technology advance…

One Third Rule

- At given technology level, 1% increase in capital/labor hour…

Classical Growth Theory

- Real GDP growth temporary (RGDP/person increase above subsis…

Types of markets

Demand

Supply

Aggregating supply and demand functions

Factor markets = markets for factors of production (land, labo…

The willingness and ability of consumers to purchase a given a…

Refers to the willingness and ability of producers to sell a g…

Individual supply and demand curves are aggregated into market…

Types of markets

Factor markets = markets for factors of production (land, labo…

Demand

The willingness and ability of consumers to purchase a given a…

Factor Markets

Goods Markets

Difference between intermediate goods/s…

Law of demand

1. Markets for the purchase and sale of factors of production…

1.Markets for the output of production... 2. Firms buy the servic…

1.Intermediate goods and services are those purchased for use…

price rises/falls, buy less/more

Factor Markets

1. Markets for the purchase and sale of factors of production…

Goods Markets

1.Markets for the output of production... 2. Firms buy the servic…

GDP (Gross Domestic Product)

Economics

Mixed Economy

The type of economic system found in th…

The total value of goods and services produced by a country in…

The study of how countries and individuals use resources to pr…

A combination of Market and Command Economies

The United States has a Mixed Economy

GDP (Gross Domestic Product)

The total value of goods and services produced by a country in…

Economics

The study of how countries and individuals use resources to pr…

own-price elasticity of demand

inelastic

elastic

greater

The percentage change in quantity demanded for a percentage ch…

when there are few or no good substitues for a good, demand te…

the larger the proportion of income spent on a good, the more…

elasticity of demand tends to be (greater or less) the longer…

own-price elasticity of demand

The percentage change in quantity demanded for a percentage ch…

inelastic

when there are few or no good substitues for a good, demand te…

partial equilibrium analysis

Stable equilibrium

unstable equilibrium

bubble

analysis of the market for a single good.

Movement of the price away from its equilibrium level results…

Movement of the price away from its equilibrium level results…

unsustainable increase in price of an asset type resulting fro…

partial equilibrium analysis

analysis of the market for a single good.

Stable equilibrium

Movement of the price away from its equilibrium level results…

Real exchange rate vs nominal exchange…

AUD:USD USD/AUD AUD=?USD 改写

Currency A/Currency B 表示

Pips

FX real(d/f)=FX nominal (d/f) x CPI-f/CPI-d

AUD:USD=0.6... 0.6 USD/AUD... AUD=0.6 USD

我们所关心的总是/之后的这个,分母用分子 表示... 0.6USD/AUD----AUD=0.6 USD或者AUD:USD=0.6

the difference between offer and bid price is the spread, spre…

Real exchange rate vs nominal exchange…

FX real(d/f)=FX nominal (d/f) x CPI-f/CPI-d

AUD:USD USD/AUD AUD=?USD 改写

AUD:USD=0.6... 0.6 USD/AUD... AUD=0.6 USD

Frictional unemployment

Unit labor costs

Structural unemployment

Cyclical unemployment

Time lag to match employees looking for work with employers se…

The ratio of total labour compensation per hour to out put per…

Eliminating some jobs while creating new jobs fro which unempl…

Negative during expansion. Positive during contraction

Frictional unemployment

Time lag to match employees looking for work with employers se…

Unit labor costs

The ratio of total labour compensation per hour to out put per…

Own Price Elasticity

Income Elasticity

Cross Price Elasticity of Demand

Cross Price Elasticity Equation

Responsiveness of quantity demanded to a change in the price.…

The ratio of % change in quantity demanded to a % change in in…

Ratio of the % change in the quantity demanded of a good to th…

...

Own Price Elasticity

Responsiveness of quantity demanded to a change in the price.…

Income Elasticity

The ratio of % change in quantity demanded to a % change in in…

factor markets

product markets

intermediate gods

capital markets

factors of production

markets for services and finished goods

used in the production of a final product

markets where firms raise money for investment by selling debt…

factor markets

factors of production

product markets

markets for services and finished goods

Interest Rate

Discount

Nominal Risk-Free Interest Rate

Liquidity Premium

Rate of return that reflects relationship of cash at two diffe…

Reduction of value based on the date

Real risk-free interest rate + Inflation premium (A country's…

If the price can be easily changed by transactions, there is i…

Interest Rate

Rate of return that reflects relationship of cash at two diffe…

Discount

Reduction of value based on the date

Law of Demand And Market Mechanism

Common Value Auction vs. Private Value…

Auctions:... Ascending Price, First Price…

Dead weight loss

As price goes down, demand will rise. Prices will adjust to an…

CVA = will reveal correct price only after the auction is sett…

AP - common one to think of, auctioneer raises to highest pric…

Loss of consumer or producer surplus, often caused by an impos…

Law of Demand And Market Mechanism

As price goes down, demand will rise. Prices will adjust to an…

Common Value Auction vs. Private Value…

CVA = will reveal correct price only after the auction is sett…

1.Which of the following markets is lea…

2.Which of the following markets is mos…

Which of the following markets is most…

The observation "as a price of a good f…

C

C

A is correct. Coats are finished goods, the result of the outp…

B. law of demand

1.Which of the following markets is lea…

C

2.Which of the following markets is mos…

C