Introduction to Economics Flashcards
What is microeconomics?
individual markets, effect on the price of goods, individual labour markets
What is macroeconomics?
Whole economy, inflation, emplyment/unemployment, aggregate demand
What are the four key principles in microeconomics?
- Production theory
- Costs of production
- Labour economics
- Demand (supply and demand)
What is the best way to prevent a disease in microeconomics?|
Vaccinating a herd
treating sick animals
What is the equation for productivity?
Total value of outputs over unit time divided by total value of inputs over unit time
What is a fixed cost?
they vary only in the long run and ae still incurred even if the output is zero
What are variable costs?
Those costs that vary short term, and vary directly with the
amount of output produced, declining to zero if output is
zero.
What is the gross margin?
Financial output - Variable costs
What is the definition of profit?
Financial output- all the costs
