Study sets matching "micro test"

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Study sets matching "micro test"

microeconomics
scarcity
incentive
economics
microeconomics
inability to satisfy all our needs
an additional payment (or other remuneration) to employees as…
the study of how individuals and nations make choices about w…
the study of the economic behavior and decision making of sma…
scarcity
inability to satisfy all our needs
incentive
an additional payment (or other remuneration) to employees as…
Microeconomics
producer
consumer
sole proprietorship
partnership
in economics, the business or individual that provides goods…
in economics, the business or individuals that buy goods and…
a business in which one owner holds all liability and control…
a business in which two or more owners share liability and re…
producer
in economics, the business or individual that provides goods…
consumer
in economics, the business or individuals that buy goods and…
Microeconomics
Change in quantity supplied
Normative Economic statement
Efficiency
Equilibrium Price
the amount on the curve of supply changed by price
"what ought to be"
idea is to attain as much output as possible given the amount…
Happy meeting point between supply and demand
Change in quantity supplied
the amount on the curve of supply changed by price
Normative Economic statement
"what ought to be"
microeconomics
Microeconomics
Economics
Firm (or Business or Enterprise)
Scarcity (or Limited Resources, or Pau…
a branch of economics that studies the behavior of individual…
the social science that describes the factors that determine…
an organization involved in the provision of goods, services,…
is the fundamental economic problem of having seemingly unlim…
Microeconomics
a branch of economics that studies the behavior of individual…
Economics
the social science that describes the factors that determine…
117 terms
Microeconomics
scarcity
economics
efficiency
equality
the limited nature of society's resources
the study of how society manages its scarce resources
the property of society getting the most it can from its scar…
the property of distributing economic prosperity uniformly am…
scarcity
the limited nature of society's resources
economics
the study of how society manages its scarce resources
118 terms
Microeconomics
Principles of Individual Choice
Principles of the Interactions of Indi…
Principles of Market Failure
Principles of Economy Wide Interactions
1. Resources are scarce; therefore, we must make decisions.... 2…
5. There are gains from trade.... 6. Markets will move towards e…
10. Individual actions have side effects that are not taken i…
13. One person's spending is another person's income.... 14. Ove…
Principles of Individual Choice
1. Resources are scarce; therefore, we must make decisions.... 2…
Principles of the Interactions of Indi…
5. There are gains from trade.... 6. Markets will move towards e…
128 terms
Microeconomics
scarcity
economics
efficiency
equality
the limited nature of society's resources
the study of how society manages its scarce resources
the property of society getting the most it can from its scar…
the property of distributing economic prosperity uniformly am…
scarcity
the limited nature of society's resources
economics
the study of how society manages its scarce resources
Microeconomics
Demand
Demand line
Scarcity
Land, natural resources that are used…
the collection of different quantities that people will purch…
represents a downward sloping line reflecting the reality tha…
Having unlimited wants VS having limited resources
factor of production
Demand
the collection of different quantities that people will purch…
Demand line
represents a downward sloping line reflecting the reality tha…
13 terms
Microeconomics
Refer to the above data. If the price…
If government set a minimum price of $…
At the point where the demand and supp…
If there is a surplus of a product, it…
farmers would not be able to sell all their wheat.
surplus of 21 units would occur.
the quantity that consumers want to purchase and the amount p…
is above the equilibrium level.
Refer to the above data. If the price…
farmers would not be able to sell all their wheat.
If government set a minimum price of $…
surplus of 21 units would occur.
27 terms
Microeconomics
Demand
Demand curve
Scarcity
Land or other things found in nature u…
the collection of different quantities that people will purch…
represents a downward sloping line reflecting the reality tha…
Having unlimited wants VS having limited resources
natural resources
Demand
the collection of different quantities that people will purch…
Demand curve
represents a downward sloping line reflecting the reality tha…
48 terms
Microeconomics
Benefit
Corporation
Costs
Cost/Benefit Analysis
something that aids or promotes well-being
a business owned by stockholders who share in its profits but…
An amount that must be paid or spent to buy or obtain somethi…
A study that compares the costs and benefits to society of pr…
Benefit
something that aids or promotes well-being
Corporation
a business owned by stockholders who share in its profits but…
82 terms
Microeconomics
Abundance
Budget Set
Competition
Complementary Goods
A physical or economic condition where the quantity available…
Different bundles of goods and services that are attainable t…
The process of consumers bidding prices upwards or producers…
A pair of good where the quantity demanded of one increases w…
Abundance
A physical or economic condition where the quantity available…
Budget Set
Different bundles of goods and services that are attainable t…
14 terms
Microeconomics
Merit Goods
Marginal Cost
Opportunity Cost
Macroeconomics
a private good with positive externalities
the addition to total costs to produce each extra unit of out…
The value of forgoing one option for another
The study of the whole economy dealing in aggregates such as…
Merit Goods
a private good with positive externalities
Marginal Cost
the addition to total costs to produce each extra unit of out…
Microeconomics
Market
product markets
factor markets
Financial (Foreign exchange) markets
where buyers and sellers come together to carry out an econom…
goods and services are being bought and sold
factors of production are being bought and sold
international currencies are traded
Market
where buyers and sellers come together to carry out an econom…
product markets
goods and services are being bought and sold
27 terms
Microeconomics
Comparative advantage
Absolute advantage
Demand
Qty Demanded
refers to the ability of a party to produce a particular good…
refers to the ability of a party to produce more of a good or…
how much of a product that is desired by buyers
how much of something consumer is willing to buy at a certain…
Comparative advantage
refers to the ability of a party to produce a particular good…
Absolute advantage
refers to the ability of a party to produce more of a good or…
57 terms
Microeconomics
Trade-off
Opportunity Cost
4 Factors of Production
PPC (or frontier)
all alternatives given up when making a choice... Ex: You can bu…
most desirable alternative given up when making a choice... Ex:…
1. Land... 2. Labor... 3. Capital... 4. Entrepreneurship
model that shows other ways an economy can use its scarce res…
Trade-off
all alternatives given up when making a choice... Ex: You can bu…
Opportunity Cost
most desirable alternative given up when making a choice... Ex:…
59 terms
Microeconomics
Welfare Economics
Willingness to pay
Consumer Surplus
Cost (economic)
The study of how the allocation of resources affects economic…
the max amount a buy will pay for a good
Amount buyer is willing to pay less the amount the buyer actu…
The value of everything a seller must give up, not solely mon…
Welfare Economics
The study of how the allocation of resources affects economic…
Willingness to pay
the max amount a buy will pay for a good
14 terms
Microeconomics
Law of Supply
Law of Demand
equilibrium price
price ceiling
if price goes up supply goes up; if price goes down supply go…
if price goes up demand goes down; if price goes down demand…
market clearing price; point at which supply & demand are equ…
maximum price set below equilibrium; creates a shortage
Law of Supply
if price goes up supply goes up; if price goes down supply go…
Law of Demand
if price goes up demand goes down; if price goes down demand…
microeconomics
scarcity
incentive
economics
microeconomics
Gap between resources and wants, Inability to satisfy all our…
An additional payment (or other remuneration) to employees as…
The study of how individuals and nations make choices about w…
The study of the economic behavior and decision making of sma…
scarcity
Gap between resources and wants, Inability to satisfy all our…
incentive
An additional payment (or other remuneration) to employees as…
Microeconomics!
Economics
Scarcity
Microeconomics
Five Foundations of Economics
The study of how people allocated their limited resources to…
Our wants outweigh our ability to produce those wants with th…
concerned with decisions of individuals, households and busin…
1) Incentives matter... 2)Opportunity costs... 3)Life is about trad…
Economics
The study of how people allocated their limited resources to…
Scarcity
Our wants outweigh our ability to produce those wants with th…
Microeconomics
Chapter 1
Who is the father of economics?
Why do we need to study economics?
What is economics?
...
Adam Smith; wrote the first book dealing with economics: "Wea…
Hunan's wants are unlimited. Resources are limited.
The study of choice; how human beings make decisions.
Chapter 1
...
Who is the father of economics?
Adam Smith; wrote the first book dealing with economics: "Wea…
95 terms
Microeconomics
Demand
Demand line
Scarcity
Land, natural resources that are used…
the collection of different quantities that people will purch…
represents a downward sloping line reflecting the reality tha…
Having unlimited wants VS having limited resources
factor of production
Demand
the collection of different quantities that people will purch…
Demand line
represents a downward sloping line reflecting the reality tha…
74 terms
Microeconomics
microeconomics
trade-offs
opportunity cost
recession
- the study of how individuals, households, and businesses ma…
every decision involves this... - utility now vs. utility in the…
the value of the best alternative we give up on when a choice…
2 consecutive quarters of negative GDP growth
microeconomics
- the study of how individuals, households, and businesses ma…
trade-offs
every decision involves this... - utility now vs. utility in the…
50 terms
Microeconomics
Supply
Demand
Law of Diminishing Marginal Utility
Elasticity
Amount of goods available
Quantity of a good or service that consumers are willing and…
rule stating that the additional satisfaction a consumer gets…
A measure of how much one economic variable responds to chang…
Supply
Amount of goods available
Demand
Quantity of a good or service that consumers are willing and…
739 terms
microeconomics
The circular flow diagram of economic…
In the circular flow diagram model
In a _______________________, most eco…
_____________ - a term referring to th…
flow of goods, services, and payments between households and…
(both a and b are correct ) ... // ... businesses receive revenues…
market-oriented economy
Economies of scale
The circular flow diagram of economic…
flow of goods, services, and payments between households and…
In the circular flow diagram model
(both a and b are correct ) ... // ... businesses receive revenues…
33 terms
Microeconomics
Economic Problem
Demand + Supply
Positive Statement
Normative Statement
Situation that arises that involves scarcity where there are…
Analysis... 1. shift... 2. price... 3. quantity... Comment... 1. Size of sh…
Fact
Opinion
Economic Problem
Situation that arises that involves scarcity where there are…
Demand + Supply
Analysis... 1. shift... 2. price... 3. quantity... Comment... 1. Size of sh…
78 terms
Microeconomics
Economics means
Opportunity Costs
Explicit Cost
Implicit Cost
Scarcity; Having unlimited wants and limited resources
the most desirable alternative given up as the result of a de…
paid for
Value of foregone opportunities
Economics means
Scarcity; Having unlimited wants and limited resources
Opportunity Costs
the most desirable alternative given up as the result of a de…
13 terms
Microeconomics
market
microeconomics
supply and demand
supply side
exchange of goods and services
the behavior of the individuals participating in the exchanges
forces that influence the exchange of goods and services
producers and sellers of products and services
market
exchange of goods and services
microeconomics
the behavior of the individuals participating in the exchanges
298 terms
Microeconomics
In countries like _____________ the co…
Which of the following best denotes th…
In the first chapter of The Wealth of…
In the ______________, households rece…
Cuba and North Korea
a command economy
division of labor
goods and services market
In countries like _____________ the co…
Cuba and North Korea
Which of the following best denotes th…
a command economy
91 terms
Microeconomics
Opportunity Cost
Calculation for Opportunity Cost (Chan…
Production Possibilities Frontier (PPF)
Law of Increasing Costs
The amount of of something that must be sacrificed in order t…
Opportunity Cost A = Change in Product B/ Change in Product A
This is a graphical analysis which will show a downward slopi…
This rule states that as more of a product is made, its oppor…
Opportunity Cost
The amount of of something that must be sacrificed in order t…
Calculation for Opportunity Cost (Chan…
Opportunity Cost A = Change in Product B/ Change in Product A
Microeconomics
Laws that restrict the smoking of ciga…
A decrease in the number of sellers in…
The buyers and sellers will bear an eq…
The slope of an upward-sloping line is…
Externalities
The supply curve to shift to the left
D1, and the supply is S1
True
Laws that restrict the smoking of ciga…
Externalities
A decrease in the number of sellers in…
The supply curve to shift to the left
22 terms
microeconomics
Law of Supply
Law of Demand
buffer stock scheme
Price Elasticity of Demand
as price of product rises Quantity supplied will usually incr…
as price falls the quantity demanded of the product will incr…
Governments keeping the price of a product in a set range ach…
measure of the quantity demanded of a product changes when th…
Law of Supply
as price of product rises Quantity supplied will usually incr…
Law of Demand
as price falls the quantity demanded of the product will incr…
118 terms
Microeconomics
industrial organization
total revenue
total cost
explicit costs
the study of how firms' decisions about prices and quantities…
amount a firm receives for the sale of its output ... quantity o…
the market value of the inputs a firm uses in production... expl…
input costs that require an outlay of money from the firm
industrial organization
the study of how firms' decisions about prices and quantities…
total revenue
amount a firm receives for the sale of its output ... quantity o…
73 terms
Microeconomics
Microeconomics
Market
Perfectly Competitive Markets
Demand
Based on supply and demand; their interactions create a coord…
Consists of all buyers and sellers of a particular good or se…
Sell highly standardized products; large number of buyers and…
The amount of a good that buyers are willing and able to purc…
Microeconomics
Based on supply and demand; their interactions create a coord…
Market
Consists of all buyers and sellers of a particular good or se…
56 terms
Microeconomics
Marginal Rate of Substitution of X for Y
free entry
short-run supply curve in perfect comp…
long-run firm's supply curve
The rate at which we would be willing to substitute the good…
The ability of a firm to enter an industry without encounteri…
the portion of a firm's short-run marginal cost curve above i…
A firm produces where its long-run marginal cost equals the m…
Marginal Rate of Substitution of X for Y
The rate at which we would be willing to substitute the good…
free entry
The ability of a firm to enter an industry without encounteri…
67 terms
Microeconomics
Economics
Economic perspective
Scarcity and Choice
Purposeful Behavior
A social science concerned with making optimal choices under…
the way economists view the world.... -Scarcity and choice... -Oppo…
If resources weren't scarce, we wouldn't have to make choices…
Individuals and businesses make rational decisions; decisions…
Economics
A social science concerned with making optimal choices under…
Economic perspective
the way economists view the world.... -Scarcity and choice... -Oppo…
microeconomics
a. Monopoly
c. Monopolistic Competition
b. Oligopoly
d. Perfectly Competitive Market
What do you call a market that has a single supplier, high ba…
What do you call a market in which multiple firms are produci…
What do you call a market with only a few suppliers which mus…
What do you call a market with a large number of suppliers se…
a. Monopoly
What do you call a market that has a single supplier, high ba…
c. Monopolistic Competition
What do you call a market in which multiple firms are produci…
32 terms
Microeconomics
product market
resource market
medium of exchange
substitute
in the circular flow chart, households purchase products from…
in the circular flow chart, businesses acquire productive res…
money; something that is generally accepted as payment for go…
something that can be used in place of something else
product market
in the circular flow chart, households purchase products from…
resource market
in the circular flow chart, businesses acquire productive res…
42 terms
Microeconomics
Microeconomics
The three functions of money
Medium of exchange
Store of value
The unit of study that focuses on the interactions of busines…
Medium of exchange, store of value, measure of value.
Using money to trade.
If you save money it still can be used later.
Microeconomics
The unit of study that focuses on the interactions of busines…
The three functions of money
Medium of exchange, store of value, measure of value.
97 terms
Microeconomics
what shifts the production possibiliti…
All societies use rationing devices be…
What causes a supply curve shift to th…
If the demand curve shifts rightward,…
An increase in resources
scarcity exists in all societies
Improved technology
it becomes greater at each price
what shifts the production possibiliti…
An increase in resources
All societies use rationing devices be…
scarcity exists in all societies
77 terms
Microeconomics
Economics
Goods
Services
Economic good
A social science, which is a study of people in society and h…
tangible products
Intangible products
Any good or service that has a price
Economics
A social science, which is a study of people in society and h…
Goods
tangible products
33 terms
Microeconomics
explicit costs
average total cost
total utility
marginal analysis
input costs that require an outlay of money by the firm
total cost divided by the quantity of output
The total amount of satisfaction derived from the consumption…
analysis that involves comparing marginal benefits and margin…
explicit costs
input costs that require an outlay of money by the firm
average total cost
total cost divided by the quantity of output
Microeconomics
Rent control policy
Private good
Public good
Competitive strategy
Controls price limits that a landlord can set.
Only you can use it (book/laptop).
Everybody can use it (highway).
Used to gain a competitive advantage over rivals.
Rent control policy
Controls price limits that a landlord can set.
Private good
Only you can use it (book/laptop).
38 terms
Microeconomics
Microeconomics
Macroeconomics
Positive Statements
Normative statemets
The effect of choices that firms and consumers make under the…
Study of national & global economy
Beliefs... Current operations of the world can be correct or inc…
How things should be
Microeconomics
The effect of choices that firms and consumers make under the…
Macroeconomics
Study of national & global economy
13 terms
Microeconomics
scarcity
opportunity cost
marginal thinking
comparative advantage
not freely available from nature in the quantities desired by…
highest-valued alternative that must be sacrificed in order t…
evaluate whether the benefit of one more unit of something is…
the situation in which an individual, business, or country ca…
scarcity
not freely available from nature in the quantities desired by…
opportunity cost
highest-valued alternative that must be sacrificed in order t…
46 terms
Microeconomics
Economics
Your wants are..
3 steps to thinking like an economist
Scarcity and Choice
Wants exceed productive capacity
Unlimited
Scarcity and Choice... Purposeful (Rational) Behavior... Marginal a…
Resources are scarce... Choices must be made... There is no free lu…
Economics
Wants exceed productive capacity
Your wants are..
Unlimited
Microeconomics
Deadweight Loss
Opportunity Cost
Economic Growth
Absolute Advantage
Loss of economic efficiency that can occur when equilibrium f…
The loss of potential gain from other alternatives when one a…
An increase in the amount of goods and services produced per…
Ability of a party to produce a greater good, product or serv…
Deadweight Loss
Loss of economic efficiency that can occur when equilibrium f…
Opportunity Cost
The loss of potential gain from other alternatives when one a…
26 terms
Microeconomics
Utility
Marginal Utility
Law of Diminishing Marginal Utility
Budget Constraint
The enjoyment/satisfaction people receive from consuming good…
The change in total utility a person received from consuming…
The principle that consumers experience diminishing additiona…
The limited amount of income available to consumers to spend…
Utility
The enjoyment/satisfaction people receive from consuming good…
Marginal Utility
The change in total utility a person received from consuming…
79 terms
Microeconomics
Which of the following is true if ther…
The incidence of a tax:
Economists identify the satisfaction a…
The demand curve for a monopoly is:
There is a decrease in consumer surplus.
refers to how much of the tax is actually paid by consumers a…
utility.
the industry demand curve.
Which of the following is true if ther…
There is a decrease in consumer surplus.
The incidence of a tax:
refers to how much of the tax is actually paid by consumers a…
739 terms
microeconomics
The circular flow diagram of economic…
In the circular flow diagram model
In a _______________________, most eco…
_____________ - a term referring to th…
flow of goods, services, and payments between households and…
(both a and b are correct ) ... // ... businesses receive revenues…
market-oriented economy
Economies of scale
The circular flow diagram of economic…
flow of goods, services, and payments between households and…
In the circular flow diagram model
(both a and b are correct ) ... // ... businesses receive revenues…
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