Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Econ 102 > lesson 6-9, part of 10 > Flashcards

lesson 6-9, part of 10 Flashcards

1
Q

What does the price of a good represent?

A

The amount of money the buyer has to spend to buy it from the seller.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a cost to a producer?

A

The amount of money the seller has to spend to produce a good.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is total cost (TC)

A

The cost of producing a certain quantity of units of a good.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a fixed cost?

A

Costs that do not vary with the quantity of units produced.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is a variable cost. (VC)

A

Costs that vary with the quantity of units produced.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is marginal cost? (MC)

A

The cost of producing one more unit of a good.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the Law of diminishing Marginal returns?

A

With fixed input, and an increasing variable input, at some point the marginal product of the variable input must decline.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is a Marginal product?

A

The additional output produced when one more unit variable input is added.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What does increasing marginal return mean?

A

The range of input usage over which marginal product increases.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is diminishing marginal returns?

A

The range of input usage over which marginal product decreases.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What does Average Total Cost mean?

A

The total coast divided by the quantity of units produced.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the Average Fixed Costs?

A

The Total Fixed Cost divided by the quantity of. units produced.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the Average Variable Costs mean?

A

The total variable costs divided by the quantity of units produced.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the Short run mean?

A

The time horizon where some inputs are fixed and some are variables.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does the Long Run mean?

A

The time horizon where all inputs are variable.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What does the range of economies of scale mean?

A

The range where long run average total costs decrease as output increases.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is the range of diseconomies of scale mean?

A

The range where long run average total costs increase as output increases.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Why is the range of constant returns of scale?

A

The range where long run average total costs stay constant as outputs increases.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What does the optimal firm size mean?

A

The quantity of production that minimizes long run average total costs.

20
Q

What are the two assumptions for perfect competition?

A

Zero transaction costs
No coercive barriers to entry

21
Q

What are transaction costs?

A

Any costs of going through with an exchange transaction, other than the price of the good itself (shipping)

22
Q

What is a coercive barrier to entry?

A

The use or threat of force to prevent others from offering their products for sale to the same customers.

23
Q

What is Total Revenue?

A

The amount of money a seller receives in exchange for their products.

24
Q

What is marginal revenue?

A

The additional revenue a seller gets from selling one more unit of a good.

25
Q

What does profit mean?

A

The difference between a firms total revenue and total cost (PI = TR - TC)

26
Q

What does accounting profit mean?

A

The total revenue minus explicit cost.

27
Q

What is the explicit cost mean?

A

The amount of money spent on all inputs to a production process.

28
Q

What is economic profit?

A

Total revenue minus explicit cost and implicit cost.

29
Q

What does a implicit cost mean?

A

The opportunity cost of the money spent on all inputs to a production process.

30
Q

What are intermediaries?

A

A person who facilitates an exchange.

31
Q

What is the Private marginal cost mean?

A

The cost the supplier bears when it produces one more unit of a good.

32
Q

What is the social marginal cost?

A

The cost that everyone in society bears when the supplier produces one more unit of a good.

33
Q

What is the Non-excludable good?

A

A good that people can consume even without paying for it.

34
Q

What is the Free rider problem?

A

The problem that when a good is non-excludable people have an incentive to consume it but not pay for it.

35
Q

what is a market failure viewpoint?

A

Observed inefficiency in a market system a failure of the market to achieve an efficient outcome.

36
Q

What is the market process?

A

A free market system is best understood as an outgoing process in which entrepreneurs seek profits by eliminating inefficiency

37
Q

What does consumer sovereignty mean?

A

The power of commoners to decide that gets produced.

38
Q

What is the marginal revenue productivity theory of wages?

A

The theory that in a competitive market a workers wage is determined by that workers marginal revenue product.

39
Q

In the shift of the labor demand curve, what is capital accumulation?

A

Increasing the amount of tools, machines, education, and other goods that make workers more productive.

40
Q

What is a union?

A

A group of workers, who voluntarily join together to bargain with their employer as a team.

41
Q

What is a strike?

A

When employees stop working until their employer grants certain demands.

42
Q

In factors that affect capital accumulations, what is deferred consumption mean?

A

Consuming less in the present in anticipation of consuming more in the future.

43
Q

What is public choice economics mean?

A

economic analysis of the political process.

44
Q

What are the three voting rules?

A

Plurality(win by most votes)
Majority rule with runoff election, if no majority then their is a second election.
Borda Rule- (Preference lists)

45
Q

When will a person vote?

A

When the have a higher incentive to vote by, civic duty, net candidate differential, and probability of decisiveness.

46
Q

What is Rational ignorance?

A

When a person is ignorant because the cost of gaining additional information would outweigh the benefit.

47
Q

what does rent-seeking mean in the government?

A

Using government coercion to seek benefits at the expense of other people.

Econ 102 (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions