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Study sets matching "microeconomics 1"

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Study sets matching "microeconomics 1"

45 terms
Microeconomics 1
Price Elasticity of Demand
Percentage Change in Price
Midpoint Method
Percentage Change in Quantity
Measure of responsiveness of the quantity demanded of a good…
New price minus initial price divided by initial price multip…
Average of new price minus initial price divided by new price…
New quantity minus initial quantity divided by new quantity p…
Price Elasticity of Demand
Measure of responsiveness of the quantity demanded of a good…
Percentage Change in Price
New price minus initial price divided by initial price multip…
40 terms
Microeconomics 1
Circular Flow
Household
Market
Business
a model that shows the movement of money, factors of producti…
A person or group of individuals that occupy a housing unit l…
any situation that brings producers (sellers) and consumers (…
a person or group that produces goods and/or services.
Circular Flow
a model that shows the movement of money, factors of producti…
Household
A person or group of individuals that occupy a housing unit l…
128 terms
Microeconomics1
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
34 terms
Microeconomics 1
Scarcity
incentive
Economics
Microeconomics
Our inability to get everything we want
A reward that encourages an action or a penalty that discoura…
The social science that studies the choices that individuals,…
The study of the choices that individuals make,, the way thes…
Scarcity
Our inability to get everything we want
incentive
A reward that encourages an action or a penalty that discoura…
16 terms
Microeconomics1
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
30 terms
Microeconomics Chapter 1 Review
Positive Statement
Normative Statement
macroeconomics
5 Macroeconomic areas studied: IIUST
A statement of FACTS that can be verified.
A statement of OPINION or BELIEF that cannot be verified.
A study of how the MAJOR components interact.
Inflation, Interest Rate Policy, Unemployment, Spending and t…
Positive Statement
A statement of FACTS that can be verified.
Normative Statement
A statement of OPINION or BELIEF that cannot be verified.
52 terms
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…
19 terms
Microeconomics 1
producing the exact right combination…
human made resources that are used to…
formal agreement between firms to set…
a situation in which firms act in agre…
allocative efficiency
capital
cartel
collusion
producing the exact right combination…
allocative efficiency
human made resources that are used to…
capital
39 terms
Microeconomics #1
Definition of economics:
Natural resources are...
Human resources are...
Contructed resources are...
The study of how people choose to allocate scare resources be…
resources from the earth (land, water, etc)
resources from people (labor, employees, etc.)
resources that are man-made (capital, money, buildings, etc)
Definition of economics:
The study of how people choose to allocate scare resources be…
Natural resources are...
resources from the earth (land, water, etc)
15 terms
Microeconomics 1
Economic Problem
Microeconomics
Macroeconomics
Factor of Production
How best to allocate scarce resources among alternative uses.
How households and small firms make decisions in markets. It…
The study of issues that affect economy as a whole. It looks…
The required inputs that are available in an economy for the…
Economic Problem
How best to allocate scarce resources among alternative uses.
Microeconomics
How households and small firms make decisions in markets. It…
53 terms
Microeconomics 1
scarcity
incentive
economics
microeconomics
inability to satisfy our wants and needs
reward or penalty that encourages or discourages certain choi…
the study of choices made by individuals, businesses, and gov…
the study of particular agents in particular markets
scarcity
inability to satisfy our wants and needs
incentive
reward or penalty that encourages or discourages certain choi…
24 terms
Microeconomics 1
3 core choices that confront Every Nat…
Per capita GDP Scarcity
Economics
Opportunity cost
1.WHAT to produce with our limited resources ... 2.HOW to produc…
- lack of enough resources to satisfy all desired uses of tho…
The study of how best to allocate scarce resources among comp…
The most desired goods or services for going to obtain someth…
3 core choices that confront Every Nat…
1.WHAT to produce with our limited resources ... 2.HOW to produc…
Per capita GDP Scarcity
- lack of enough resources to satisfy all desired uses of tho…
6 terms
Microeconomics 1
Economics
Individual Choice
Economy
Market Economy
The study of scarcity and choice.
The decisions by indivuduals about what to do, which necessar…
A system for coordinating a society's productive and consumpt…
The decisions of individual producers and consumers largely d…
Economics
The study of scarcity and choice.
Individual Choice
The decisions by indivuduals about what to do, which necessar…
16 terms
Microeconomics 1
Key Economic Assumption
Demand
Law of Demand
Normal Goods
People are and act rationally in market
The relationship between price and quantity demanded
All else equal, there is a negative correlation between price…
Goods for which an increase in income leads to an increase in…
Key Economic Assumption
People are and act rationally in market
Demand
The relationship between price and quantity demanded
Microeconomics 1
Economy
Economics
Market Economy
Command Economy
The social arrangements that determine what is produced, how…
The study of production, distribution, and consumption of goo…
Market where most of the decisions are made by buyers and sel…
Market where the government either makes the decisions or str…
Economy
The social arrangements that determine what is produced, how…
Economics
The study of production, distribution, and consumption of goo…
49 terms
Microeconomics #1
Opportunity Cost
Negative Externality
What are the four essential economic a…
Exchange
the value of the best alternative that is foregone when a cho…
Harmful side effects or unintended consequences of economic a…
Production, Resource Maintenance, Consumption, Distribution
one actor provides a good or service
Opportunity Cost
the value of the best alternative that is foregone when a cho…
Negative Externality
Harmful side effects or unintended consequences of economic a…
37 terms
Microeconomics 1
economics
economic agent
scarcity
positive economics
choices that people make to try to achieve their goals; how a…
any group or individual that makes choices such as consumers,…
situation in which unlimited wants exceed the limited resourc…
study of "what is"
economics
choices that people make to try to achieve their goals; how a…
economic agent
any group or individual that makes choices such as consumers,…
176 terms
Microeconomics 1
Free Market
Boom
Macroeconomics
Microeconomics
A type of economy in which governments don't intervene signif…
Period of high growth that raises output above normal capacit…
The study of the behaviour and performance of the whole econo…
Analyzes individual decisions at the household and firm level…
Free Market
A type of economy in which governments don't intervene signif…
Boom
Period of high growth that raises output above normal capacit…
81 terms
Microeconomics 1
Price elasticity of demand
Price elasticity of demand
Midpoint measure
% change in price
= % change in quantity demanded / % change in price... a measure…
price elasticity of demand > 1, elastic demand (points above…
a measure of percentage change that does not depend on the di…
= ((new price - initial price) / (new price + initial price)…
Price elasticity of demand
= % change in quantity demanded / % change in price... a measure…
Price elasticity of demand
price elasticity of demand > 1, elastic demand (points above…
133 terms
1 Microeconomics
Demand
Law of demand
Veblen good
Supply
The willingness and ability to purchase a quantity of a good…
Principle that as the price of a good falls, the quantity dem…
Goods that are exceptions to the Law of Demand, whereas the p…
The willingness and the ability of a producer to produce a qu…
Demand
The willingness and ability to purchase a quantity of a good…
Law of demand
Principle that as the price of a good falls, the quantity dem…
56 terms
Microeconomics 1
scarcity
economics
efficiency
equality
society has limited resources
study of how society manages scarce resources
society getting the most it can from resources
even distribution of economic prosperity across society
scarcity
society has limited resources
economics
study of how society manages scarce resources
64 terms
Unit 1 - Microeconomics Diagrams
Change in Demand
Change in Quantity Demanded
Change in Supply
Change in Quantity Supplied
E.G. due to a new marketing campaign.
Due to a change in supply.
E.G. due to an improvement of technology
Due to a change in Demand.
Change in Demand
E.G. due to a new marketing campaign.
Change in Quantity Demanded
Due to a change in supply.
15 terms
Microeconomics 1
Inferior items
Scarcity
Economics
Market
1. How are prices of goods and services determined? ... 2. How d…
Unlimited in which unlimited wants,exceeds limited resources
The study of the choices people make to attain the goals, giv…
A group of buyers and sellers of goods and services that come…
Inferior items
1. How are prices of goods and services determined? ... 2. How d…
Scarcity
Unlimited in which unlimited wants,exceeds limited resources
51 terms
Microeconomics 1
Quantity demanded
Law of demand
Demand
Taste... Price... Income... Price of other good…
Is the amount of goods & services which all households are wi…
People buy more if anything is cheaper
Is a list that shows you different quantity demanded at a dif…
What determines qd/d?
Quantity demanded
Is the amount of goods & services which all households are wi…
Law of demand
People buy more if anything is cheaper
43 terms
Microeconomics 1
economics
opportunity cost
microeconomics
positive analysis
study of how people and societies use limited resources to sa…
Cost of the next best alternative use of money, time, or reso…
the study of how households and firms make decisions and how…
Analysis describing relationships of cause and effect. A desc…
economics
study of how people and societies use limited resources to sa…
opportunity cost
Cost of the next best alternative use of money, time, or reso…
51 terms
Microeconomics 1
the economizing problem is one of the…
When the economics says that economic…
The fundamental problem of economics is
Because of the scarcity efficient use…
Limited resources to satisfy virtually unlimited wants
These wants are virtually unlimited and therefore incapable o…
The scarcity of productive resources relative to economic wants
An important issue in all economics
the economizing problem is one of the…
Limited resources to satisfy virtually unlimited wants
When the economics says that economic…
These wants are virtually unlimited and therefore incapable o…
9 terms
Microeconomics 1
Abstraction
Direct relationship
Economic man
Inverse relationship
The act or process of simplifying. Abstracting means leaving…
Two variables are directly related if they move in the same d…
Homo Economicus: A self-interested economic agent.
Two variables are inversely related if they move in opposite…
Abstraction
The act or process of simplifying. Abstracting means leaving…
Direct relationship
Two variables are directly related if they move in the same d…
50 terms
Microeconomics #1
Barter
Black market
Budget Line (including reasons for shi…
Ceteris Paribus
...
...
...
...
Barter
...
Black market
...
16 terms
microeconomics 1
consumer surplus
producer surplus
total surplus
price ceiling
difference between price paid and benefit received... price x qu…
difference between price received and cost of good... price x qu…
total gain to society of producing and consuming good... ts = cs…
maximum price allowed
consumer surplus
difference between price paid and benefit received... price x qu…
producer surplus
difference between price received and cost of good... price x qu…
33 terms
Microeconomics 1
Principle 1
Scarcity
Economics
Efficiency
People face trade-offs
The limited nature of society's resources
The study of how society manages its scarce resources
The Roberts of society getting the most it can from its scarc…
Principle 1
People face trade-offs
Scarcity
The limited nature of society's resources
13 terms
Microeconomics 1
Normative Statement
Positive Statement
Economic Agents
Economic Problem
Value judgements, a subjective statement of opinion. Often co…
Objective statements that can be tested, amended or rejected…
Any person/group of people who has an influence on the econom…
All economies face the problem of scarce resources and infini…
Normative Statement
Value judgements, a subjective statement of opinion. Often co…
Positive Statement
Objective statements that can be tested, amended or rejected…
31 terms
Microeconomics 1
Scarcity
Economics
Principle 1: People Face Tradeoffs
Efficiency
the limited nature of societys resources
The study of how society manages its scarce resources ... -how…
All decisions involve tradeoffs... Examples:... -Going to a party…
When society gets the most from its scarce resources
Scarcity
the limited nature of societys resources
Economics
The study of how society manages its scarce resources ... -how…
17 terms
Microeconomics 1
Scarcity
opportunity cost
economics
micro
not enough resources to satisfy our unlimited wants(time,oil,…
the next best alternative that you give up when you make a ch…
study of human choices over scarce resources and how humans m…
studies individuals in firms
Scarcity
not enough resources to satisfy our unlimited wants(time,oil,…
opportunity cost
the next best alternative that you give up when you make a ch…
26 terms
Microeconomics 1
Allocative efficiency
Antitrust activity
Barriers to Entry
Cartel
Achieved when the firm produces the output most preferred by…
Government efforts aimed at preventing monopoly and promoting…
Anything that prevents new firms from competing on an equal f…
A group of firms that agree to coordinate pricing decisions t…
Allocative efficiency
Achieved when the firm produces the output most preferred by…
Antitrust activity
Government efforts aimed at preventing monopoly and promoting…
Microeconomics Chapter 1
Utility is measured in
economic perspective
Human behavior reflects ________ and p…
Utility
utils
...
Rational self interest
the pleasure or satisfaction obtained from consuming a good o…
Utility is measured in
utils
economic perspective
...
43 terms
Microeconomics 1
requirements for trade
benefits of trade
transaction cost
economics
buyer, seller, an agreed upon price for a good or service
when voluntary trade occurs, both parties are better off, tra…
the cost incurred in locating, negotiating, and obtaining the…
how scarce or limited resources are used to satisfy our unlim…
requirements for trade
buyer, seller, an agreed upon price for a good or service
benefits of trade
when voluntary trade occurs, both parties are better off, tra…
85 terms
1. Microeconomics
Market
Explain negative causal relationship b…
Non-price determinants of demand (shif…
Linear demand functions HL
Institution which permits interaction between buyers and sell…
Demand is the willingness and ability to consume a good or se…
Consumer income... Price of complementary and substitute goods... T…
Qd = a - bP... Steepness affected by change in "b"... Shift affect…
Market
Institution which permits interaction between buyers and sell…
Explain negative causal relationship b…
Demand is the willingness and ability to consume a good or se…
169 terms
Microeconomics Exam 1
Utility
Marginal Utility
Normal Good
Inferior Good
How much pleasure or satisfaction you get from owning a parti…
The amount of additional utility derived from an additional u…
A good that you consume more of when your income rises
A good that you consume less of when your income rises (ie: H…
Utility
How much pleasure or satisfaction you get from owning a parti…
Marginal Utility
The amount of additional utility derived from an additional u…
12 terms
Microeconomics 1
In economics, choices are necessary be…
Economics is the study of
the basic goal of economics is
microeconomics is the study of
Scarcity
how to allocate
addressing the scarcity problem
individual decision-making units
In economics, choices are necessary be…
Scarcity
Economics is the study of
how to allocate
7 terms
microeconomics 1
All else equal, what happens to consum…
Motor oil and gasoline are complements…
If the demand for a good or service in…
What happens to the total surplus in a…
a. Consumer surplus increases.
d. may increase, decrease, or remain unchanged.
a. increases.
c. Total surplus decreases.
All else equal, what happens to consum…
a. Consumer surplus increases.
Motor oil and gasoline are complements…
d. may increase, decrease, or remain unchanged.
22 terms
Microeconomics 1
Economics
Basic economic problem
Opportunity cost
Trade off
The basic allocation of resources
How best do we allocate scarce resources to an infinite numbe…
The value of the next best alternative forgone
The decision between two allocations of resources
Economics
The basic allocation of resources
Basic economic problem
How best do we allocate scarce resources to an infinite numbe…
48 terms
Microeconomics 1
Economics
Scarcity
Economic
Economic Reasoning
the social science that studies how individuals, groups, gove…
Inability to satisfy all wants and needs
the study of human decision making
Seeking to maximize happiness and minimize suffering/ cost
Economics
the social science that studies how individuals, groups, gove…
Scarcity
Inability to satisfy all wants and needs
11 terms
Microeconomics 1
Why can it be said that a decrease in…
List the demand shifters... (For an in…
Opportunity cost.
Ceterus paribus.
Demand is the relationship between price and quantity. A decr…
1. Weather or fads favor the product ... 2. There are more poten…
What you give up to get something.
Everything else is held constant.
Why can it be said that a decrease in…
Demand is the relationship between price and quantity. A decr…
List the demand shifters... (For an in…
1. Weather or fads favor the product ... 2. There are more poten…
28 terms
Microeconomics #1
economics
Why do we make choices?
examples of resources
compare and contrast micro- and macro-…
study of choices, how why and the results of making them
scarcity
anything really, time money items food land
micro- individual situation view... macro- entire functioning ec…
economics
study of choices, how why and the results of making them
Why do we make choices?
scarcity
128 terms
Microeconomics Exam 1
Resource Allocation Methods
Market Price
Command System
Majority Rule
1. Market Price... 2. Command... 3. Majority Rule... 4. Contest... 5. Fir…
The people who get the resource are those who are willing to…
Allocates resources by the order of (command) someone in auth…
Allocates resources in the way the majority of voters choose.…
Resource Allocation Methods
1. Market Price... 2. Command... 3. Majority Rule... 4. Contest... 5. Fir…
Market Price
The people who get the resource are those who are willing to…
14 terms
microeconomics #1
what does every society have to devise?
what does the absence of poverty imply?
what does the absence of scarce imply?
what does the use of scarce resources…
some method of rationing scarce resources among competing use…
that some basic level of need has been met.
that our desires for goods are fully satisfied. we may someda…
a good always has an opportunity cost.
what does every society have to devise?
some method of rationing scarce resources among competing use…
what does the absence of poverty imply?
that some basic level of need has been met.
71 terms
Microeconomics Chapters 1-6
Individual choice
True
Resource
Scarce Resources
The decision by an individual of what to do, which necessaril…
Markets move towards equilibrium
Anything that can be used to produce something else... (ex. land…
The quantity available is not large enough to satisfy all pro…
Individual choice
The decision by an individual of what to do, which necessaril…
True
Markets move towards equilibrium
18 terms
Microeconomics 1
What happens when prices are above the…
According to the law of supply, higher…
If quantity demanded is greater than q…
When people's income falls, they usual…
There is a surplus of the good and the price will fall
Produce more
Equilibrium quantity rises; shortage
Less than normal
What happens when prices are above the…
There is a surplus of the good and the price will fall
According to the law of supply, higher…
Produce more
46 terms
Microeconomics Exam #1
Definition of Economics
The Scientific Method
Characteristics of the market system
Law of Demand
The social science concerned with how people, institutions, a…
- Observe... - Formulate a hypothesis... - Test the hypothesis... - Ac…
- Private property... - Freedom of enterprise and choice... - Self-…
•Other things equal, as price falls, the quantity demanded ri…
Definition of Economics
The social science concerned with how people, institutions, a…
The Scientific Method
- Observe... - Formulate a hypothesis... - Test the hypothesis... - Ac…
46 terms
Microeconomics Terms Unit 1
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
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