Q1: basics of graphs and economics Flashcards

Prepare you for quiz 1!

1
Q

Japanese Currency

A

Yen

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

Korean Currency

A

Won

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

Chinese Currency

A

Yuan

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

Describe a Product Graph

A

P/Q, S/D (P=price, Q=quantity) (S=supply of product, Quantity of product sold)

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

Describe a Labor Graph

A

W/Q, S/D (W=wage rate, Q=quantity) (S=supply of workers, D=demand for workers from company)

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

Describe a Foreign Exchange Graph

A

V/Q, S/D (V=value of currency, Q=quantity of currency) (S=domestic supply of money/citizens leaving, D=foreign demand for the money/foreigners visiting)

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

What are Goods

A

physical objects someone purchases (ex: food, clothes, or video games)

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

What are Services

A

actions or activities that one person performs for another (Ex: medical care or haircuts)

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

What is scarcity

A

limited amounts of goods and services are available to meet unlimited wants and needs

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

What is Economics

A

the study of how people seek to satisfy their needs and wants by making choices on different levels (individual, groups, governments)

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

What are Entrepreneurs

A

people who decide how to combine resources to create new goods and services

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

What is Land in economics

A

all natural resources used to produce goods and services

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

What is Labor in economics

A

the effort people devote to tasks for which they are paid

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

What is capital (physical and human)

A

any human-made resource that is used to produce other goods/services.

  • physical capital is human made objects used to create other goods and services (ex: a building housing a company that makes other products)
  • human capital is the knowledge and skills a worker gains through education and experience (ex: increase your human capital to advance physical capital)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Three basic economic questions

A
  • What goods and services should be produced?
  • How should these goods and services be produced?
  • Who consumes these goods and services?

The answers define a country’s economic system.

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

Ceteris Paribus

A

assuming that only one factor would change rather than many

17
Q

What are non-price determinants

A

factors that can cause demand/supply to shift, including income, population, advertising, and more

18
Q

What are normal goods

A

goods that consumers demand more of when their incomes increase

19
Q

What are inferior goods

A

goods that you would buy in smaller amounts or not at all if your income were to rise and you could afford alternatives

20
Q

Impact of future expectations

A

If you know a product will be cheaper tomorrow, you wont buy it today. Or, if you know that a product is cheaper today you might buy a lot of it in advance.

21
Q

Impact of demographics

A

different demographics (age, race, gender, occupation, income level) will want different goods. The baby boom for example, causes a rise in baby products and now that those babies are grown up there is more demand for senior-care products.

22
Q

Impact of advertising

A

Advertising shifts demand curve because it leads to trends and interest in products (technology has changed advertising to digital and consumer based)

23
Q

Related goods: Complements

A

goods that are bought and used together (ex: erasers and pencils)

24
Q

Related goods: Substitutes

A

goods that are used in place of one another (ex: pencils and pens)

25
Q

Inelastic demand

A

the amount of a good you buy doesn’t change, or changes very little, after a large price increase. (ex: medicine or someone who really loves doritos more than fritos)

26
Q

Elastic demand

A

when the amount of a good you buy is greatly impacted by price changes. (ex: someone who would rather spend less money on a different product than more on a usual one)

27
Q

What is a subsidy

A

a government payment that supports a business or market

28
Q

What is an excise tax

A

a tax on the production or sale of a good used to discourage use (ex: cigarettes, alcohol)

29
Q

What is market regulation

A

government intervention in a market that affects the price, quantity, or quality of a good (ex: food safety inspection)

30
Q

Non-price determinants that change supply

A

changes in global economy (ex: oil and russia), inflation, changes in competition of production/sale of the product, location

31
Q

What is Equilibrium

A

the point of balance where demand and supply are equal

32
Q

What is disequilibrium

A

occurs when supply and demand are not equal in a market

33
Q

What is a shortage

A

A shortage occurs when demand is higher than supply.

34
Q

What is a surplus

A

A surplus exists when supply exceeds demand

35
Q

What is a price ceiling

A

A maximum price for a good or service set by the government. For example, rent control in NYC which led to less housing available and thus more without homes or good homes, but ending rent control would make homes too expensive for many people.

36
Q

What is a price floor

A

A minimum price set by the government. For example, minimum wage which is set by the federal gov and can be set higher, but not lower, by state govs.

37
Q

Tending to Equilibrium

A

Markets for products will tend toward equilibrium naturally, because factors affected by a change will also change in reaction.

38
Q

Changing equilibrium

A

New technology (ex: development of cameras) and time can change what equilibrium is from the supply side. New trends (ex: toys or clothing type) and time can change equilibrium from the demand side.