Economics Flashcards
What is Microeconomics
branch of economics that deals with the specific factors that affect an economy.
Demand
represents a consumer’s willingness and ability to pay for products and services
Law of demand
As price goes up quantity goes down. And as price goes down quantity goes up.
The demand curve and elasticity of demand
The downward sloping demand curve signifies that as the price falls, the quantity demanded increases.
Law of supply and the Supply curve
states as the price rises for a product the quantity supplied also rises.
putting supply and demand together
in a free enterprise economy, prices serve as signals to producers and consumers
Perfect competition
a market structure with large numbers of buyers and sellers.
Market Failure
A market failure is a market where any of the requirements for a competitive market.
Role of government
Sherman Antitrust Act of 1890 was enacted prohibit trusts, monopolies, and other arrangements that restrain competition.
Changing role of Marketing
Marketing involves all of the activities needed to move good ands services from the producer to the consumer
Distribution of income
Distributions of income is measured by ranking family incomes lowest to highest then dividing the ranking into quintiles.
Macroeconomics
Branch of economics that deals with economy as a whole including employment, gross domestic, product, inflation, economic growth, and the distribution of income.
Unemployment
People without jobs, identified monthly by Census Bureau
Frictional unemployment
caused by workers changing jobs or waiting to to new ones
Structural unemployment
Caused by fundamental change in the economy that reduces the demand for some workers
