Study sets matching "microeconomics 4"

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Study sets matching "microeconomics 4"

8 terms
Microeconomics 4
Price Ceiling or Price Cap
Rent Ceiling
Black Market
Search Activity
Government regulation that places an upper limit on the price…
Regulation that makes it illegal to charge more than a specif…
Illegal market that operates alongside a government regulated…
Time spent looking for someone with whom to do business
Price Ceiling or Price Cap
Government regulation that places an upper limit on the price…
Rent Ceiling
Regulation that makes it illegal to charge more than a specif…
37 terms
Microeconomics #4
Implicit costs
Explicit Costs
Economic Profit
Short-Run Market Adjustments
The opportunity costs associated with a firm's use of resourc…
Payments by a firm to purchase the services of productive res…
Total revenues minus total costs (TR-TC), including implicit…
A time period so short that the firm is unable to vary some o…
Implicit costs
The opportunity costs associated with a firm's use of resourc…
Explicit Costs
Payments by a firm to purchase the services of productive res…
15 terms
Microeconomics 4
Product of output Market
Labor Market
Capital market
Labor market
Market of goods/ services exchange
Input market in whihc households supply work for wages to fir…
Input market in which households supply their savings for int…
Households supply land in exchange for rent
Product of output Market
Market of goods/ services exchange
Labor Market
Input market in whihc households supply work for wages to fir…
Microeconomics 4
price controls
price ceiling
price floor
tax rate
a government mandate that uses the force of law to set a mini…
a government mandated maximum price that sellers can charge f…
a government mandated minimum price that sellers can change f…
percentage of the tax
price controls
a government mandate that uses the force of law to set a mini…
price ceiling
a government mandated maximum price that sellers can charge f…
Microeconomics #4
G.E. and Westinghouse did what wrong?
First antitrust legislation in the U.S…
When a company merges with a supplier…
What does the Clayton Act do?
Practiced monopolizing and got fined for damages
Sherman Act
Vertical merger
Prohibits exclusive dealing agreements
G.E. and Westinghouse did what wrong?
Practiced monopolizing and got fined for damages
First antitrust legislation in the U.S…
Sherman Act
21 terms
Microeconomics 4
Factor markets
Factor prices
Job
Nonrenewable natural resources
the markets in which the services of the factors of productio…
the prices of the services of the factors of production
a contract between a firm and a household to provide labor se…
natural resources that can e used only once and cannot be rep…
Factor markets
the markets in which the services of the factors of productio…
Factor prices
the prices of the services of the factors of production
Microeconomics 4
Sociopsychiatric Explanation
Utility
Total Utility
Marginal Utility
our desire for goods and services results from our needs for…
the pleasure/satisfaction we get from a good or service
the amount of satisfaction obtained from consuming the whole…
satisfaction obtain from consuming one additional until of a…
Sociopsychiatric Explanation
our desire for goods and services results from our needs for…
Utility
the pleasure/satisfaction we get from a good or service
16 terms
Microeconomics Chapter 4
Law of Demand
Demand Curve
Demand
Quantity Demanded
The side of an economy in which quantity demanded rises as pr…
The graphic representation of the relationship between price…
A schedule of quantities of a good that will be brought per u…
A specific amount that will be demanded per unit of time at a…
Law of Demand
The side of an economy in which quantity demanded rises as pr…
Demand Curve
The graphic representation of the relationship between price…
15 terms
Microeconomics 4
Price Elasticity of demand
Price of elasticity formula
Perfectly Inelastic Demand
Unit Elastic Demand
A units free measure of the responsiveness of the quantity de…
(Change in Q/ Q average)/(change in P/ P average)
If the quantity demanded remains constant when the price chan…
If the percentage change on the quantity demanded equals the…
Price Elasticity of demand
A units free measure of the responsiveness of the quantity de…
Price of elasticity formula
(Change in Q/ Q average)/(change in P/ P average)
Microeconomics 4
Demand
Quantity demanded
Law of Demand
Supply
A relationship between the price and quantity demanded
The total number of units that are purchased at a given price…
A higher price leads to a lower quantity demanded
The relationship between price and the quantity supplied of a…
Demand
A relationship between the price and quantity demanded
Quantity demanded
The total number of units that are purchased at a given price…
28 terms
microeconomics 4
long run decision
short run decision
marginal product
law of diminishing marginal productivity
the firm can choose among all possible production techniques
the firm is constrained in regard to what production decision…
the additional output forthcoming from an additional input, o…
as more and more of a variable input is added to an existing…
long run decision
the firm can choose among all possible production techniques
short run decision
the firm is constrained in regard to what production decision…
19 terms
microeconomics 4
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 t…
the amount of a good that buyers are willing and able to purc…
the claim that other things being equal the quantity demanded…
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 t…
microeconomics 4
The impact of one person's actions on…
A cost imposed on someone who is neith…
The local fire department wants to buy…
If Christopher earns $80,000 in taxabl…
an externality
negative externality
3 percentage points
false
The impact of one person's actions on…
an externality
A cost imposed on someone who is neith…
negative externality
20 terms
Microeconomics: Microeconomics Test #4 (final)
all of the above
Compensating differential
shift inward, parallel to the original…
increases
The equilibrium wages can differ in the labor market due to:…
Workers who work the night shift are often paid more than tho…
Suppose a consumer spends all their income on CDs and DVDs. I…
Suppose the indifference curve obeys the four properties from…
all of the above
The equilibrium wages can differ in the labor market due to:…
Compensating differential
Workers who work the night shift are often paid more than tho…
4 Microeconomics, Jerry Bodily
Price elasticity of demand
elastic demand
inelastic demand
price-elasticity of coefficient formula
measures buyers responsiveness to price changes
sensitive to price changes, large change in quantity
insensitive to price changes, small change in quantity
Ed = (% change Qd / % change P) or Ed = (change in quantity d…
Price elasticity of demand
measures buyers responsiveness to price changes
elastic demand
sensitive to price changes, large change in quantity
microeconomics 4
All else equal, what happens to consum…
If the demand for light bulbs increase…
Suppose the tax on gasoline is raised…
Taxes cause deadweight losses because…
b. Consumer surplus decreases.
a. increases.
b. the deadweight loss of the tax necessarily increases.
d. All of the above are correct.
All else equal, what happens to consum…
b. Consumer surplus decreases.
If the demand for light bulbs increase…
a. increases.
4. Microeconomics
Economics is the study of:... A. an econ…
If the price of chocolate increases, t…
Which of the following would most like…
If consumers demand more of a good tha…
B is correct. ... Economics is the study of choices in the pres…
B is correct. ... The law of demand states that the quantity de…
C is correct. ... The law of supply states that when prices inc…
A is correct. ... When the price of a good is below the equilib…
Economics is the study of:... A. an econ…
B is correct. ... Economics is the study of choices in the pres…
If the price of chocolate increases, t…
B is correct. ... The law of demand states that the quantity de…
65 terms
Microeconomics Chapter 1-4
Price ceiling
price floor
consumer surplus
marginal benefit
A legally determined maximum price that sellers may charge
a legally determined minimum price that sellers may receive
the difference between the highest price a consumer is willin…
the additional benefit to a consumer from consuming one more…
Price ceiling
A legally determined maximum price that sellers may charge
price floor
a legally determined minimum price that sellers may receive
Principles of Microeconomics Ch. 4
Elasticity
Price elasticity of demand
is elastic demand Responsive or unresp…
is Inelastic Demand responsive or unre…
responsiveness or sensitivity of one variable to change in an…
measures the responsiveness of quantity demanded to a change…
Responsive
Unresponsive
Elasticity
responsiveness or sensitivity of one variable to change in an…
Price elasticity of demand
measures the responsiveness of quantity demanded to a change…
33 terms
Microeconomics - 4
Market structure
Price taker
Price maker
Perfect competition
The organisation of a market in terms of the number of firms…
A firm which passively accepts the ruling market price set by…
A firm possessing the power to set the price within the market
- Large number of buyers and sellers... - Perfect market informa…
Market structure
The organisation of a market in terms of the number of firms…
Price taker
A firm which passively accepts the ruling market price set by…
Microeconomics - Exam 4
Oligopoly Characteristics
Game Theory
Dominant Strategy Game
Dominant strategy must be in the Nash…
- Few firms in the market... - Each firm is mutually interdepend…
1) Players→ Firms... 2) Payoffs→ Profit... 3) Strategies→ Manageria…
- Solution: (High, High)... - This solution is the π- max soluti…
...
Oligopoly Characteristics
- Few firms in the market... - Each firm is mutually interdepend…
Game Theory
1) Players→ Firms... 2) Payoffs→ Profit... 3) Strategies→ Manageria…
4-MICROECONOMICS
consumer surplus
producer surplus
total surplus
deadweight loss
the difference between market price and what consumers (as in…
the difference between market price and the price at which fi…
the sum of consumer surplus and producer surplus, and a measu…
the reduction in total surplus that results from the ineffici…
consumer surplus
the difference between market price and what consumers (as in…
producer surplus
the difference between market price and the price at which fi…
Microeconomics Exam 4
Profit =
Total Revenue =
What is Market Power?
Characteristics of Competitive Markets
TR - TC
p * q
how much control do firms have over price
1. Many firms... 2. Each firm is producing the same good... 3. Each…
Profit =
TR - TC
Total Revenue =
p * q
38 terms
Microeconomics Chapter 4-book notes
Total revenue (TR), not to be confused…
What is the formula for total revenue?
P stands for the -____ of the product,…
At the same time, however, the lower p…
dollar value, price
price, quantity, decrease
going up
Total revenue (TR), not to be confused…
dollar value, price
What is the formula for total revenue?
47 terms
Microeconomics Chapters 1-4
scarcity
economics
4 ways people make decisions
3 ways people interact
the limited nature of society's resources
the study of how society manages it's scarce resources
1)people face tradeoffs... 2)the cost of something is what you…
5)Trade can make everyone better off... 6)Markets are usually a…
scarcity
the limited nature of society's resources
economics
the study of how society manages it's scarce resources
Microeconomics chapter 4
Market Equilibrium
Equilibrium price
Equilibrium Quantity
What is a shortage?
The point at which the market supply and the market demand cu…
- When quantity demand is equal to quantity supplied. ... - The…
The point at which the market supply and the market demand cu…
Where quantity demanded exceeds quantity supplied. ... - When pr…
Market Equilibrium
The point at which the market supply and the market demand cu…
Equilibrium price
- When quantity demand is equal to quantity supplied. ... - The…
35 terms
Microeconomics Chapters 1-4
Microeconomics:
Macroeconomics:
Positive Statement:
Normative Statement:
Study of individuals and business decisions
Study of Government and National decisions
Fact based
Value focused
Microeconomics:
Study of individuals and business decisions
Macroeconomics:
Study of Government and National decisions
Microeconomics 4
If the minimum wage is increased, but…
If income taxes are increased by %15 t…
If the percentage of people who are in…
Public Goods and Common property resou…
Will increase
Increase by more than %15
An absolute definition of poverty must be in use
Not excludable to those who don't pay.
If the minimum wage is increased, but…
Will increase
If income taxes are increased by %15 t…
Increase by more than %15
Principles of Microeconomics CH. 4
Market
Market price
Perfectly competitive market
price-taker
a group of economic agents who are trading a good or service
all buyers and sellers facing the same price
(1) sellers all sell an identical good or service. (2) any in…
buyer or seller who accepts the market price.
Market
a group of economic agents who are trading a good or service
Market price
all buyers and sellers facing the same price
Microeconomics Chapter 4 Karsch
Demand
Microeconomics
Demand Schedule
Demand Curve
combination of desire, ability, and willingness to buy a prod…
branch of economic theory that deals with behavior and decisi…
listing showing the quantity demanded at all possible prices…
graph showing the quantity demanded at each and every possibl…
Demand
combination of desire, ability, and willingness to buy a prod…
Microeconomics
branch of economic theory that deals with behavior and decisi…
Microeconomics Ch 4
Elasticity
Inelastic
Elastic
Price elasticity of demand
the measure of the responsiveness of buyers and sellers to ch…
If the quantity demanded changes a small amount as a result o…
If the quantity demanded changes significantly as a result of…
Measures the responsiveness of quantity demanded to a change…
Elasticity
the measure of the responsiveness of buyers and sellers to ch…
Inelastic
If the quantity demanded changes a small amount as a result o…
Microeconomics Terms Unit 4
accounting profit
average cost
average fixed cost
average product
total revenue minus explicit costs
total cost divided by the quantity of output
fixed cost divided by the quantity of output
total production divided by the quantity of a particular input
accounting profit
total revenue minus explicit costs
average cost
total cost divided by the quantity of output
11 terms
Microeconomics Chapter 4
Price elasticity of demand
Elastic
Inelastic
Unit elastic
Percentage change in quantity demanded due to 1% change in pr…
Price elasticity > 1... Increases when substitutes, more expensi…
Price elasticity < 1... P> Q< TE>, P<, Q>, TE<
Price elasticity = 1
Price elasticity of demand
Percentage change in quantity demanded due to 1% change in pr…
Elastic
Price elasticity > 1... Increases when substitutes, more expensi…
11 terms
Microeconomics chapter 4
Price Elasticity of Demand
Formula to calculate Elasticity of Dem…
Inelastic and Elastic Demand
Perfectly Inelastic Demand
A units-free measure of the responsiveness of the quantity de…
( Percentage change in quantity demanded ) / ( Percentage cha…
Inelastic Demand - When price elasticity of demand is between…
If quantity demanded remains constant when the price changes,…
Price Elasticity of Demand
A units-free measure of the responsiveness of the quantity de…
Formula to calculate Elasticity of Dem…
( Percentage change in quantity demanded ) / ( Percentage cha…
19 terms
Microeconomics Homework 4
A market is competitive if... (i) Firms h…
Scenario 4-1 ... As part of an estate set…
Refer to Scenario 4-1. How large would…
Which of the following statements rega…
A. ii and iii only
A. 25,000 loss
A. 175,000
D. for all firms, average revenue equals the price of the food
A market is competitive if... (i) Firms h…
A. ii and iii only
Scenario 4-1 ... As part of an estate set…
A. 25,000 loss
11 terms
Microeconomics Ch. 4
price ceiling
price floor
consumer surplus
marginal benefit
The maximum price sellers are allowed to charge for a good or…
a legally determined minimum price that sellers may receive
Refers to the difference between the highest prices people ar…
the additional goodness of adding one unit
price ceiling
The maximum price sellers are allowed to charge for a good or…
price floor
a legally determined minimum price that sellers may receive
24 terms
Microeconomics Module 4
product market
inputs
factor market
circular flow
where goods and services are sold and money is transferred th…
inputs from households:land,labor,capital, entrepreneurial sk…
or resource market, where consumers offer their inputs for bu…
the clockwise flow of products and resources and in exchange,…
product market
where goods and services are sold and money is transferred th…
inputs
inputs from households:land,labor,capital, entrepreneurial sk…
25 terms
Microeconomics: Chapter 4
price elasticity of demand
price elasticity of demand equation
E>1
E=1
the responsiveness of consumers to a price change
E=%ΔQ/%ΔP
Elastic
Unit Elastic
price elasticity of demand
the responsiveness of consumers to a price change
price elasticity of demand equation
E=%ΔQ/%ΔP
41 terms
chapter 4 (microeconomics)
market failure
optimal outcome
optimal mix/market mix
source of market failure
an imperfection in market mechanism that prevents an optimal…
the most desireable combination output attainable with existi…
they are both efficient... over production of x... underproduction…
public good... externality... market power... inequity
market failure
an imperfection in market mechanism that prevents an optimal…
optimal outcome
the most desireable combination output attainable with existi…
Microeconomics Chapter 4
Demand
Quantity demanded
Law of Demand
Demand Schedule
A relationship between price and the quantity demanded of a c…
The total number of units of a good or service purchased at a…
The common relationship that a higher price leads to a lower…
A table that shows a range of prices for a certain good or se…
Demand
A relationship between price and the quantity demanded of a c…
Quantity demanded
The total number of units of a good or service purchased at a…
11 terms
Microeconomics ch. 4 vocab
Price ceiling
Price floor
Consumer surplus
Marginal benefit
A legally determined maximum price that sellers may charge
A legally determined minimum price that sellers may receive
The difference between the highest price a consumer is willin…
The additional benefit to a consumer from consuming one more…
Price ceiling
A legally determined maximum price that sellers may charge
Price floor
A legally determined minimum price that sellers may receive
Microeconomics Chapter 4 Karsch
Demand
Microeconomics
Demand Schedule
Demand Curve
combination of desire, ability, and willingness to buy a prod…
branch of economic theory that deals with behavior and decisi…
listing showing the quantity demanded at all possible prices…
graph showing the quantity demanded at each and every possibl…
Demand
combination of desire, ability, and willingness to buy a prod…
Microeconomics
branch of economic theory that deals with behavior and decisi…
Microeconomics Lecture 1-4
theory of comparative advantage
theory of absolute advanatage
specialization
sunk cost fallacy
person should specialize in task with lowest opportunity cost
people should specialize in producing a product for which the…
focus on producing a certain product and trade for other desi…
when sunk cost affects your decisions
theory of comparative advantage
person should specialize in task with lowest opportunity cost
theory of absolute advanatage
people should specialize in producing a product for which the…
37 terms
Microeconomics Ch. 4
Market
Competitive market
Perfectly competitive market
Demand
group of buyers and sellers of a particular product... can take…
a market with many buyers and sellers, each has a negligible…
All goods exactly the same... Buyers & sellers so numerous that…
a table that shows the quantities that consumers are willing…
Market
group of buyers and sellers of a particular product... can take…
Competitive market
a market with many buyers and sellers, each has a negligible…
11 terms
Microeconomics Ch. 4 Vocab
demand
supply
equilibrium price
equilibrium quantity
the schedule of quantities of a good or service that people a…
the schedule of a good or service that people are willing and…
the price at which quantity demanded equals quantity supplied
the quantity bought and sold at the equilibrium price
demand
the schedule of quantities of a good or service that people a…
supply
the schedule of a good or service that people are willing and…
Microeconomics Chapter 4 Karsch
Unit Elastic
Elastic
Demand Elasticity
Elastcity
given change in price causes a proportional change in quantit…
when a given change in price causes a relatively larger chang…
extent to which a change in price causes a change in the quan…
measure of responsiveness that tells us how a dependent varia…
Unit Elastic
given change in price causes a proportional change in quantit…
Elastic
when a given change in price causes a relatively larger chang…
15 terms
Microeconomics Ch. 4
price elasticity of demand
midpoint formula
elastic demand
inelastic demand
the responsiveness (or sensitivity) of consumers to a price c…
a formula that averages the two prices and the two quantities…
when a specific percentage change in price results in a large…
when a specific percentage change in price produces a smaller…
price elasticity of demand
the responsiveness (or sensitivity) of consumers to a price c…
midpoint formula
a formula that averages the two prices and the two quantities…
20 terms
Microeconomics Ch. 4
Price Ceilings
Price Floors
Short side of the market
Black market
maximum price set below equilibrium price, causes shortage, m…
the minimum price that a product can be sold at; causes surpl…
The smaller of quantity supplied and quantity demanded at a p…
A market in which goods are sold illegally at a price above t…
Price Ceilings
maximum price set below equilibrium price, causes shortage, m…
Price Floors
the minimum price that a product can be sold at; causes surpl…
Microeconomics Chap 3 & 4
Demand
Demand Schedule
Law of Demand
Diminishing Marginal Utility
A schedule or a curve that shows the various amounts of a pro…
the quantity of a good all consumers in a market will buy at…
As price rises quantity demanded falls and as price falls qua…
The marginal utility decreases when someone can have a lot of…
Demand
A schedule or a curve that shows the various amounts of a pro…
Demand Schedule
the quantity of a good all consumers in a market will buy at…
Microeconomics Ch. 4
Willingness to Pay
Individual Consumer Surplus
Total Consumer Surplus
Consumer Surplus
The maximum price at which a customer would buy a good
The net gain to an individual buyer from the purchases of a g…
The sum of the individual consumer surpluses of all the buyer…
Often used to refer both to individual and to total consumer…
Willingness to Pay
The maximum price at which a customer would buy a good
Individual Consumer Surplus
The net gain to an individual buyer from the purchases of a g…
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