Brainscape's Knowledge GenomeTM

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


See full index

ECON 102 > Productive Efficiency > Flashcards

Productive Efficiency Flashcards

Vocab

1
Q

Allocative efficiency

A

A state of the economy in which production is in accordance with consumer preferences; in particular, every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it

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

Centrally planned economy

A

An economy in which the government decides how economic resources will be allocated

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

Economic Model

A

A simplified version of reality used to analyze real-world economic situations

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

Economic Variable

A

Something measurable that can have different values, such as the number of people employed in manufacturing

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

Economics

A

The study of the choices people make to attain their goals, given their scarce resources

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

Equity

A

The fair distribution of economic benefits

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

Macroeconomics

A

The study of the economy as a whole, including topics such as inflation, unemployment, and economic growth

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

Marginal Analysis

A

Analysis that involves comparing marginal benefits and marginal costs

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

Market

A

A group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade

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

Market Economy

A

An economy in which the decisions of households and firms interacting in markets allocate economic resources

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

Microeconomics

A

The study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices

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

Mixed economy

A

An economy in which most economic decisions result from the interaction of buyers and sellers in markets but in which the government plays a significant role in the allocation of resources

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

Normative Analysis

A

Analysis concerned with what ought to be

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

Opportunity cost

A

The highest-valued alternative that must be given up to engage in an activity

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

Positive Analysis

A

Analysis concerned with what is

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

Productive Efficiency

A

A situation in which a good or service is produced at the lowest possible cost

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

Scarcity

A

A situation in which unlimited wants exceed the limited resources available to fulfill those wants

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

Trade-off

A

The idea that, because of scarcity, producing more of one good or service means producing less of another good or service

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

Voluntary Exchange

A

A situation that occurs in markets when both the buyer and the seller of a product are made better off by the transaction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Absolute Advantage

A

The ability of an individual, a firm, or a country to produce more of a good or service than competitors, using the same amount of resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Circular-flow diagram

A

A model that illustrates how participants in markets are linked

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Comparative Advantage

A

The ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Economic growth

A

The ability of an economy to produce increasing quantities of goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Entrepreneur

A

Someone who operates a business, bringing together the factors of production- labor, capital, and natural resources- to produce goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Factor market

A

A market for the factors of production, such as labor, capital, natural resources, and entrepreneurial ability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Factors of production

A

Labor, capital, natural resources, and other inputs used to make goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Free Market

A

A market with few government restrictions on how a good or service can be produced or sold or on how a factor of production can be employed

28
Q

Product market

A

A market for goods- such as computers-or services-such as medical treatment

29
Q

Production possibilities frontier (PPF)

A

A curve showing the maximum attainable combinations of two goods that can be produced with available resources and current technology

30
Q

Property rights

A

The rights of individuals or businesses have to the exclusive use of their property, including the right to buy or sell it

31
Q

Trade

A

The act of buying and selling

32
Q

Centers paribus (“all else equal”) condition

A

The requirement that when analyzing the relationship between two variable - such as price and quantity demanded - other variables must be held constant

33
Q

Competitive Market Equilibrium

A

A market equilibrium with many buyers and sellers

34
Q

Complements

A

Goods and services that are used together

35
Q

Demand Curve

A

A curve that shows the relationship between the price of a product and the quantity of the product demanded

36
Q

Demand schedule

A

A table that shows the relationship between the price of a product and the quantity of the product demanded

37
Q

Demographics

A

The characteristics of a population with respect to age, race, and gender

38
Q

Income effect

A

The change in the quantity demanded of a good that results from the effect of a change in price on consumer purchasing power, holding all other factors constant

39
Q

Inferior good

A

A good for which the demand increases as income falls and decreases as income rises

40
Q

Law of demand

A

A rule that states that, holding everything else constant, when the price of a product falls, the quantity demanded of the product will increase, and when the price of a product rises, the quantity demanded of the product will decrease

41
Q

Law of supply

A

A rule that states, that holding everything else constant, increases in price cause increases in the quantity supplied, and decreases in price cause decreases in the quantity supplied

42
Q

Market demand

A

The demand by all the consumers of a given good or service

43
Q

Market Equilibrium

A

A situation in which quantity demanded equals quantity supplied

44
Q

Normal good

A

A good for which the demand increases as income rises and decreases as income falls

45
Q

Perfectly competitive market

A

A market that meets the conditions of (1) many buyers and sellers, (2) all firms selling identical products, and (3)no barriers to new firms entering the market

46
Q

Quantity demanded

A

The amount of a good or service that a consumer is willing able able to purchase at a given price

47
Q

Quantity supplied

A

The amount of a good or service that a firm is willing and able to supply at a given price

48
Q

Shortage

A

A situation in which the quantity demanded is greater than the quantity supplied

49
Q

Substitutes

A

Goods and services that can be used for the same purpose

50
Q

Substitution effect

A

The change in the quantity demanded of a good that results from a change in price making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power

51
Q

Supply curve

A

A curve that the relationship between the price of a product and the quantity of the product supplied

52
Q

Supply schedule

A

A table that shows the relationship between the price of a product and the quantity of the product supplied

53
Q

Surplus

A

A situation in which the quantity supplied is greater the quantity demanded

54
Q

Technological change

A

A change in the quantity of output a firm can produce using a given quantity of inputs

55
Q

Black Market

A

A market in which buying and selling take place at prices that violate government price regulations

56
Q

Consumer Surplus

A

The difference between the highest price a consumer is willing to pay for a good or service and the actual price the consumer pays

57
Q

Marginal benefit

A

The additional benefit to a consumer from consuming one more unit of a good or service

58
Q

Marginal cost

A

The change in a farm’s total cost from producing one more unit of a good or service

59
Q

Producer surplus

A

The difference between the lowest price a firm would be willing to accept for a good or service and the price it actually receives

60
Q

Deadweight loss

A

The reduction in economic surplus resulting from a market not being in competitive equilibrium

61
Q

Economic efficiency

A

A market outcome in which the marginal benefit to consumer of the last unit produced is equal to its marginal cost of production and in which the sum of consumer surplus and producer surplus is at a maximum

62
Q

Economic surplus

A

The sum of consumer surplus and producer surplus

63
Q

Price ceiling

A

A legally determined maximum price that sellers may charge

64
Q

Price floor

A

A legally determined minimum price that sellers may receive

65
Q

Tax incidence

A

The actual division of the burden of a tax between buyers and sellers in a market

ECON 102 (1 decks)

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