|
|||
Front | Back | ||
Tradeoffs
pg.9 |
Sacrificing one thing to have an other
| ||
Marginal cost
pg.5 |
Added expenses beyond that of another tradeoff
| ||
Positive vs. Normative Economics
pg. 10 |
| ||
Oppurtunity Cost
pg. 27 |
The amount of other products that must be forgone or sacrificed to obtain 1unit of a specific good
| ||
Production Possibilities Curve
(PPC) pg. 26 |
| ||
Economics
|
livelyhood of people seeking/fufilment of utility
| ||
Consumers
|
Factors and Holdings
| ||
Marginal Benefit
pg.5 |
Added benefits (utility)
| ||
Allocation of resources
|
How much of the resource goes into fufulling CC.
| ||
Consumption Choice
|
Favorable Combination
| ||
Producers
|
Factors and Holdings
| ||
Economic Principle
|
| ||
Free Enterprise Market
|
Decentralized market
| ||
![]() |
ppc curve
| ||
Capital Market
|
Global market with no restriction,
i.e. Wall street | ||
Collateriezd debt obligation
|
housing bubble | ||
Economic orginization
|
A system and its effect on production/efficiency rooted in oppurtunity choice
| ||
Adam Smith
|
| ||
Economics
|
| ||
Substitutes
|
replacable goods/services
| ||
Compliments
|
A good/service that goes with another
| ||
Law of Demand
|
Refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship.
| ||
Economic Problem
|
How people allocate scarce resouces among alternatives to attain most utility
| ||
Law of Supply
|
Represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price.
| ||
Demand curve
|
![]() | ||
Supply Curve
|
![]() | ||
Circular Flow Model
|
![]() | ||
Movements
|
A movement refers to a change along a curve. On the demand curve, a movement denotes a change in both price and quantity demanded from one point to another on the curve. The movement implies that the demand relationship remains consistent. Therefore, a movement along the demand curve will occur when the price of the good changes and the quantity demanded changes in accordance to the original demand relationship. In other words, a movement occurs when a change in the quantity demanded is caused only by a change in price, and vice versa.
| ||
Shifts
|
shift in a demand or supply curve occurs when a good''s quantity demanded or supplied changes even though price remains the same. For instance, if the price for a bottle of beer was $2 and the quantity of beer demanded increased from Q1 to Q2, then there would be a shift in the demand for beer. Shifts in the demand curve imply that the original demand relationship has changed, meaning that quantity demand is affected by a factor other than price. A shift in the demand relationship would occur if, for instance, beer suddenly became the only type of alcohol available for consumption.
| ||
Help
|
|||
Subsidies
|
| ||
Competitive Market
|
Where there are sufficiently large numbers of buyers and sellers, such that no trader has influence on price
| ||
Demand
Affect/Determinents |
Relationship between consumer choice
| ||
Supply
Affects/Determinents |
The amount sellers are willing to produce at a given price
| ||
Other things Constant
|
Assumes technology, price of inputs, expectations, tax/policies, and # of sellers do not change.
| ||
x of y cards |