Econ

Question 1

Economy

Answer 1

How society produces exchanges and consumes goods and resources

Question 2

Absolute scarsity

Answer 2

Not having enough resources

Question 3

Economic Scarsity

Answer 3

People have infinite wants

Question 4

Commodities

Answer 4

Satisfies peoples wants and desires

Question 5

4 resource types

Answer 5

Labor
Land
Capital
Entreprenurship

Question 6

4 Types of compensation

Answer 6

Labor=wages
Land=rent
Capital=interest
Entrepreneurship=profits

Question 7

Noraml profits

Answer 7

need to be earned to stay in buisness

Question 8

3 Econ agents

Answer 8

Households
Firms
Goverment

Question 9

Market

Answer 9

Voluntary exchange between buyer and seller of goods/resources

Question 10

Technical efficiency

Answer 10

Efficient use of resources when producing goods

Question 11

Allocative efficency

Answer 11

Efficient allocation of societys scarce resources

Question 12

4 questions economist must answer

Answer 12

What will be made?
How much will be made?
How to produce?
Who for?

Question 13

Methods of allocating resources

Answer 13

Prices

competitive markets

Question 14

Dollar Vote

Answer 14

Every time you buy something

Question 15

Equity

Answer 15

Distribution of income in the economy

Question 16

Transfer payment

Answer 16

Money without work

Question 17

Consumer Price index

Answer 17

Measures prices the economy

Question 18

Economic growth

Answer 18

refers to the increase in the nations income and output

Question 19

Microeconomic

Answer 19

study of allocation and scarce resources, and distribution of income

Question 20

Abstraction

Answer 20

Ignoring many details to focus on the most important element of a problem.

Question 21

Positive statment

Answer 21

deals in fact

Question 22

Normative statement

Answer 22

Deals on opinion

Question 23

Production possibility cost

Answer 23

Shows the maximum alternative combination of two goods

Question 24

Market prices preform 4 functions

Answer 24

1. Determine resources allocation
2. give consumer & suppliers an idea of value of goods
3. Prices provide info about future
4. market prices provide incentive

Question 25

``` Px Yc Nc Tc Ps Pc YD Ec ```

Answer 25

``` Price of goods Income of consumers # of consumers Tast and preference Price of substitue Price of compliment income distribution expectation of consumers ```

Question 26

Single market demand function

Answer 26

Tells us the quantity consumers are willing and able to buy

Question 27

Utility

Answer 27

Satisfaction that a consumer receives

Question 28

Total utility

Answer 28

Total satisfaction received from a certain quantity of goods.

Question 29

Marginal utility

Answer 29

Extra utility brought about by and additoin of one more

Question 30

Income effect

Answer 30

Price increase of good will decrease realitive income.

Question 31

Veblin

Answer 31

Speical if owned

Question 32

Giffen

Answer 32

People are extremly poor, potato.

Question 33

Normal good

Answer 33

if a consumer income increases demand for this good increase