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Study sets matching "microeconomics"

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Study sets matching "microeconomics"

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…
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
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…
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…
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…
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
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…
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…
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…
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
17 terms
Microeconomics
Asset
Board of Directors
Business firm
Corporation
anything of value to which the firm has a legal claim
an important decision making body in a corporation. It decide…
an organization that uses resources to produce goods and serv…
A legal entity that can conduct business in its own name in t…
Asset
anything of value to which the firm has a legal claim
Board of Directors
an important decision making body in a corporation. It decide…
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.
88 terms
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…
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…
131 terms
Microeconomics
producer surplus (PS) =
elasticity
cost =
consumer surplus (CS) =
price - cost
how sensitive demand or supply is to changes
price - producer surplus
willingness to pay - price
producer surplus (PS) =
price - cost
elasticity
how sensitive demand or supply is to changes
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…
36 terms
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…
28 terms
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
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
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…
59 terms
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…
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…
20 terms
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…
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…
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…
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
74 terms
Microeconomics
Factors of Production
Economic Problem
Opportunity Cost
Economic activity
Capital refers to goods that are used to produce others goods…
We have unlimited wants but only limited resources to satisfy…
The cost of the next best alternative forgone when making a d…
Purpose is to produce goods and services to satisfy consumers…
Factors of Production
Capital refers to goods that are used to produce others goods…
Economic Problem
We have unlimited wants but only limited resources to satisfy…
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…
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…
10 terms
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
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.
39 terms
Microeconomics
Define Economics?
Economics?
What is economics?
Macroeconomics is best described as th…
How the society uses limited resources.
science of choice.
the study of choice when there's scarcity.
Of the nation's economy as a whole.
Define Economics?
How the society uses limited resources.
Economics?
science of choice.
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…
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…
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…
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…
105 terms
Microeconomics
Positive Statement
Normative Statement
Need
Want
A statement of fact that can be scientifically tested to see…
A statement that included a value judgement and cannot be ref…
Something that is necessary for human survival, such as food,…
Something that is desirable, such as fashionable clothing. bu…
Positive Statement
A statement of fact that can be scientifically tested to see…
Normative Statement
A statement that included a value judgement and cannot be ref…
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
11 terms
Microeconomics
Total economic profit or loss
Sherman Act of 1890
Diamonds story
Micro relates to the bible: Paul
(Marginue revenue - average total cost)Total product =... (MR-AT…
monopolies are legal unless they are illegally obtained or ma…
Is De Beers' Diamond Monopoly Forever?... De Beers is a Swiss ba…
Paul's instructions: Make it your ambition to lead a quiet li…
Total economic profit or loss
(Marginue revenue - average total cost)Total product =... (MR-AT…
Sherman Act of 1890
monopolies are legal unless they are illegally obtained or ma…
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…
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
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…
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
25 terms
Microeconomics
consumer surplus
average total cost
fixed costs
free rider
The difference between the maximum price a consumer is willin…
Average cost or unit cost is equal to total cost divided by t…
A cost of business which does not vary with output or sales;…
One who obtains benefit from a public good without paying for…
consumer surplus
The difference between the maximum price a consumer is willin…
average total cost
Average cost or unit cost is equal to total cost divided by t…
29 terms
Microeconomics
price elasticity of demand
Surplus
Consumer surplus (CS)
Producer surplus (PS)
the responsiveness (or sensitivity) of consumers to a price c…
a measure of societal well-being
the benefit to consumers for participating in the market
benefit to producers for participating in the market
price elasticity of demand
the responsiveness (or sensitivity) of consumers to a price c…
Surplus
a measure of societal well-being
48 terms
Microeconomics
Opportunity cost
Law of demand
Inferior good
Law of supply
what you must give up in order to receive something else - re…
as price increases, demand decreases, ceteris paribus
low budget items, if you had more money you'd buy something e…
as price increases, supply increases, ceteris paribus
Opportunity cost
what you must give up in order to receive something else - re…
Law of demand
as price increases, demand decreases, ceteris paribus
33 terms
Microeconomics
CFD (Circular Flow Diagram)
Product Market
Factor Market
Money
Diagram showing the flow of goods and services, factors of pr…
...
...
...
CFD (Circular Flow Diagram)
Diagram showing the flow of goods and services, factors of pr…
Product Market
...
48 terms
Microeconomics
Marginal rate of transformation
Factor Market
Product Market
Market Flow Diagram
-opportunity cost... -moving right along the curve increases opp…
-households sell resources... -business put in their costs (wages)
-households spend incomes, gain services... -businesses sell the…
Marginal rate of transformation
-opportunity cost... -moving right along the curve increases opp…
Factor Market
-households sell resources... -business put in their costs (wages)
20 terms
microeconomics
capital
PPF
scarcity
opportunity cost
goods and resources made by humans and used for productions
whys is "E" impossible?
trade off of production; (ex. choice to produce more soybeans…
capital
goods and resources made by humans and used for productions
PPF
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