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djk > djk micro midterm > Flashcards

djk micro midterm Flashcards

1
Q

Scarcity

A

The fundamental problem of having limited resources to meet unlimited wants.

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2
Q

Price Floor

A

A minimum price set by the government above the equilibrium price.

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3
Q

Price Ceiling

A

A maximum price set by the government below the equilibrium price.

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4
Q

Allocative efficiency

A

Producing the right mix of goods, according to consumer preferences.

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5
Q

Productive efficiency

A

Producing goods in the least costly way.

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6
Q

Shortage

A

When quantity demanded exceeds quantity supplied.

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7
Q

Surplus

A

When quantity supplied exceeds quantity demanded.

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8
Q

Equilibrium Quantity

A

The quantity at which quantity supplied equals quantity demanded.

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9
Q

Equilibrium Price

A

The price at which quantity supplied equals quantity demanded.

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10
Q

Change in quantity supplied

A

Movement along the supply curve due to a price change.

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11
Q

Change in supply

A

A shift in the supply curve due to factors other than price.

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12
Q

Determinants of Supply

A

Factors other than price that affect supply (e.g., technology, resource prices).

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13
Q

Supply Curve

A

A graphical representation of the relationship between price and quantity supplied.

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14
Q

Law of Supply

A

As the price of a good rises, the quantity supplied increases, ceteris paribus.

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15
Q

Supply schedule

A

A table showing the quantity supplied at various prices.

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16
Q

Supply

A

The quantity of a good that producers are willing and able to sell at various prices.

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17
Q

Change in quantity demanded

A

Movement along the demand curve due to a price change.

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18
Q

Change in demand

A

A shift in the demand curve due to factors other than price.

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19
Q

Complementary Goods

A

Goods that are consumed together.

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20
Q

Substitute Goods

A

Goods that can be used in place of each other.

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21
Q

Inferioe Goods

A

Goods for which demand decreases as income rises.

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22
Q

Normal Goods

A

Goods for which demand increases as income rises.

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23
Q

Determinants of Demand

A

Factors other than price that affect demand (e.g., income, tastes).

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24
Q

Demand Curve

A

A graphical representation of the relationship between price and quantity demanded.

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25
Q

Substitution effect

A

As the price of a good falls, it becomes more attractive relative to substitutes, increasing the quantity demanded.

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26
Q

Income Effect

A

As the price of a good falls, the consumer’s purchasing power increases, leading to higher quantity demanded.

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27
Q

Diminishing Marginal Utility

A

As more units of a good are consumed, the additional satisfaction from consuming one more unit declines.

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28
Q

Law of Demand

A

As the price of a good rises, the quantity demanded falls, ceteris paribus.

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29
Q

Demand Schedule

A

A table showing the quantity demanded at various prices.

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30
Q

Demand

A

The quantity of a good or service that consumers are willing and able to purchase at various prices.

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31
Q

Residual Claimant

A

The individual or entity entitled to the remaining income after all expenses are paid.

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32
Q

Resource Market

A

Where resources (like labor and capital) are bought and sold.

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33
Q

Product Market

A

Where goods and services are bought and sold.

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34
Q

Corporation

A

A business that is a separate legal entity from its owners.

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35
Q

Partnership

A

A business owned by two or more people.

36
Q

Sole Proprietorship

A

A business owned and operated by one person.

37
Q

Businesses

A

Organizations that buy resources to produce and sell goods and services.

38
Q

Households

A

Individuals or groups who provide resources and purchase goods and services.

39
Q

Circular Flow Diagram

A

A model showing the flow of goods, services, and money between households and businesses.

40
Q

Invisible Hand

A

A metaphor for the self-regulating nature of markets.

41
Q

Creative Destruction

A

The process by which new products and methods replace old ones.

42
Q

Dollar Votes

A

When consumers spend money, they effectively “vote” for the production of certain goods

43
Q

consumer sovreignty

A

The concept that consumers decide what goods and services will be produced.

44
Q

Money

A

A commonly accepted medium of exchange.

45
Q

Barter

A

The exchange of goods and services without money.

46
Q

Medium of Exchange

A

Anything widely accepted in exchange for goods and services (e.g., money).

47
Q

Division of Labor

A

Splitting production processes into different tasks to increase efficiency.

48
Q

Specialization

A

The focus of a business or individual on producing one or a few goods efficiently.

49
Q

Market

A

A mechanism that brings buyers and sellers together.

50
Q

competition

A

The rivalry among sellers in a market

51
Q

Self-Interest

A

Individuals’ pursuit of personal benefit, driving economic decisions.

52
Q

Freedom of Choice

A

The freedom of consumers to buy what they want.

53
Q

Freedom of Enterprise

A

The ability of businesses to obtain resources and sell products freely.

54
Q

Private Property:

A

The right to own and control resources and products.

55
Q

Market System

A

An economic system where decisions are made by individuals and firms interacting in markets

56
Q

Command System

A

An economic system in which the government controls resources and production decisions.

57
Q

Laissez-Faire Capitalism

A

An economic system with minimal government intervention.

58
Q

Economic System

A

The way a society organizes the production, distribution, and consumption of goods.

59
Q

Economic Growth

A

The expansion of the economy’s capacity to produce goods and services over time.

60
Q

Law of Increasing Opportunity Costs

A

As production of one good increases, the opportunity cost of producing an additional unit rises.

61
Q

Production Possibilities Curve (PPC

A

A graph that shows the combinations of two goods that an economy can produce, given its resources

62
Q

Capital Goods

A

Goods used to produce other goods (e.g., machinery, factories).

63
Q

Consumer Goods:

A

Goods used by individuals for personal satisfaction.

64
Q

Factors of Production:

A

Land, labor, capital, and entrepreneurial ability.

65
Q

Entrepreneurs

A

Individuals who use entrepreneurial ability to bring resources together to produce goods and services.

66
Q

Entrepreneurial Ability

A

The ability to combine other resources, take risks, and innovate.

67
Q

Investment

A

The act of purchasing capital goods to increase future production.

68
Q

Captial

A

Manufactured goods used to produce other goods and services (factories, machinery).

69
Q

Labor

A

Human effort used in production of goods and servicesC

70
Q

Land

A

Natural resources used in production

71
Q

Economic Resources

A

The inputs used to produce goods and services, categorized as land, labor, capital, and entrepreneurial ability.

72
Q

Budget Line

A

A graph showing all combinations of goods that can be purchased with a given budget

73
Q

Economizing Problem

A

The need to make choices because economic wants exceed available resources

74
Q

Normative Economics

A

Value judgments about what the economy should be like. Political mostly.

75
Q

Positive Economics

A

Objective analysis and facts

76
Q

Aggregate

A

A total or sum of individual parts, often used in macroeconomics to refer to total outputs or total demand.

77
Q

Macroeconomics

A

The study of the overall economy, including inflation, unemployment, and economic growth.

78
Q

CETERIS PARIBUS

A

The assumption that factors other than those being considered do not change.

79
Q

Microeconomics

A

The study of individual consumers, firms, and markets.

80
Q

Economic Principle

A

A widely accepted generalization about economic behavior or the economy.

81
Q

Scientific Method

A

A systematic process of hypothesis formulation, testing, and refinement in economics

82
Q

Marginal Analysis

A

Comparing the additional benefits and additional costs of a decision.

83
Q

Utility

A

The satisfaction or benefit gained from consuming a good or service.

84
Q

Opportunity cost

A

The value of the next best alternative that must be forgone when making a choice.

85
Q

Economic Perspective

A

A way of thinking that considers scarcity, opportunity costs, and rational behavior to make decisions

86
Q

Economics

A

The study of how individuals and societies allocate limited resources to satisfy unlimited wants

djk (5 decks)

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