9/3,8,&11 Notes Flashcards
1
Q
3 key questions
A
- What to produce?
- how to produce?(capital, labor)
- who get to consume?(allocate)
2
Q
2 systems
A
Planned/Communist ____Market/Capitalist
*The invisible hand of the market
3
Q
Pure capitalism flaws
A
- People w/ no resources could starve
- Monopoly
- Side Effects
- No public goods
4
Q
4 players in the economy
A
- Households
- Firms
- Government
- Rest of the world
5
Q
Government
A
The act or process of governing: specifically.
6
Q
4 Governments
A
In order 200 years ago Upside down 4-1 is current 1. Self 2. Family 3. Social 4. Civil
7
Q
Determinates
A
- Changes in peoples income
- Change in price of a related good
- Changes in consumers taste
- Expectations
- Change in the number or composition of the consumer
8
Q
Supply
A
How much producers are willing and able to offer for sale per period at each possible price other things constant.
9
Q
Shifts the supply curve?
A
- State of technology
- Prices of relevant resources
- Prices of alternative goods
- Producer expectations
- Number of producers in the market
10
Q
Standard Graph Outline
A
Y-axis - Price X-axis - Quantity X-top - Supply X-bellow - Demand X-middle - equilibrium
11
Q
Surplus is?
A
Leftover quantity
12
Q
Price ceiling
A
A price below the market price.
*in america a good example would be rent control
