Macro Midterm Exam Flashcards
pass the midterm
What does scarcity compel?
Choice
Why do people offer something to the market
To meet their own self-interest, helps others and it help them financially
What makes a product elastic and inelastic
A response to the change in price, an elastic product has substitutes doesn’t cause a reaction while an elastic product does because it is a necessity product to an everyday life.
Does price ceiling create a shortage or surplus
a shortage
Does price floor create a surplus or shortage
a surplus
What is a price taker
a company that can’t win on price
What is a fixed cost and what is a variable cost
a fix cost doesn’t change, a variable cost does change, and a manger needs to know it because it is crucial to knowing how to run a business
what is a fix cost
a cost that doesn’t change given by the bank and an amortization payment
examples of fix costs
Insurance, Mortgages, car payments
what is a variable cost
a cost that changes
Example of variable cost
salaries, benefits and fuel
what is productivity
quantity of goods and services produced from each unit of labor input
what is diminishing returns
productivity falls and it’s a manager’s worst nightmare
What did Margret Thatcher and President Reagan agreed on
The market should have less government control and less rule
What did President Regan mention in his speech
“Government in the problem”
Who benefits from private good
You, an individual
Who benefits from Public good
Everyone benefits
Where do States Tax Revenue come from
Personal Income tax/Captial Gains Tax
Where does the county government get their revenue
Property Tax and Sales Tax
Where do cities get their revenues from
Sales Tax
