Unit 1 Basic Economic Concepts

Question 1

fundamentals of economics

Answer 1

what goods and services should be produced
how should they be produced
who should recieve them

Question 2

economissts

Answer 2

people who study the way society allocates its resouces

Question 3

microeconomics

Answer 3

study of the effects of economic forces on individual parts of the economy

Question 4

macroeconomis

Answer 4

stury of the impact of changes to the economy as a whole

Question 5

goods

Answer 5

tangible itesms of value

Question 6

services

Answer 6

intangible things of value

Question 7

natural resouces/land

Answer 7

raw materials that exist on earth and air that people sue to make goods
limitedd

Question 8

human resounces/labor

Answer 8

people whose effors and skills go into the production
influence efficiency basd on size and productivity of the work force

Question 9

capital resources

Answer 9

machines, tools, buildings, and transport used in teh production of goods and servicces

Question 10

depreciation

Answer 10

used to measure the decline of capital goods

Question 11

entrepreneurship

Answer 11

process of bringing natural, human, and capital resources

Question 12

human capital

Answer 12

the knowledge/skills a worker gains throigh education and experience

Question 13

scarcity

Answer 13

unlimited wants with limited resouces
permanent

Question 14

shortage

Answer 14

temporary lack of resouces

Question 15

trade-offs

Answer 15

one thing is given up to obtain smth else

Question 16

opportunity cpsts

Answer 16

trade off of a value of 1 good or service for the value od another

Question 17

Production posibilites curve

Answer 17

graph showing what 1 entity could produce when using resouces effectively
illustrates the trade-offs and opportunity costs associated with the production of 2 goods/services
determine the possible outcomes of additional resouces
oversimplifed

Question 18

economic growth factors

Answer 18

new tech, large labor force, new resources

Question 19

marginal opportunity costs

Answer 19

ration of the number of units of a good sacrificed to produce an additional unit of another good

Question 20

why bowed outward curves are teh most frequent

Answer 20

some resouces are better suited tp tje produciton of one thing to another

Question 21

absoluted advantage

Answer 21

when a person. place, business, or country can produce more of a good or service than another produce that has the same quantity of resources

Question 22

comparative advanatage

Answer 22

the ability to produce a good or service at a lower opportunity cost than another produced
oversimplified

Question 23

specialization

Answer 23

focusing production on select goods to increase efficiency
results im opportimotoes neyond the PPC

Question 24

division of labor

Answer 24

assigining different, specific tasks to workers

Question 25

terms of trade

Answer 25

price of exports/price of imports *100

Question 26

musutally beneficial trade

Answer 26

when exchange is profitable to both

Question 27

demand

Answer 27

consumers desire and ability to purchase goods and services

Question 28

law of demand

Answer 28

the inverse relationship b/w price and quantity demanded

Question 29

determinants of demand

Answer 29

factors that affect how much consumer will purchase at every price change in disposible income, change in availabiluty of related goods and services, change in tastes or preferences, change in expectations abt the future, and change in number of buyers in the market

Question 30

demand schedule

Answer 30

a table showing the relationship b/q price and quantity demanded when all other determinetns are =

Question 31

demand curve

Answer 31

graph of the demand curve which shows the downward sloping line that relates price and quantity

Question 32

elasticity of demand

Answer 32

peeps percieve a good as hard to replace and price is low, then a prove woll change effect demand little curve is more vertical

Question 33

consumer surplus

Answer 33

the value a consumer recieves from the purchase of a good in excess of the price paid

Question 34

quanuty demanded v overall demand

Answer 34

quantitiy demanded is due to the change in price of the good or service overall is due to the change in determinants

Question 35

supply

Answer 35

the amount of a good or service a producer is willing and able to sell at a give price

Question 36

law of supply

Answer 36

when all other factors are equal, ther is a positive relationsup b.w price and quanity supplied

Question 37

determinants of supply

Answer 37

change in prices of related goods or services, change in tech change in price of resources change in number of produceers change in expectations change in gov policies

Question 38

supply schedule

Answer 38

table showing the relationship b/w price of good or service and quanitity supplied when determinants are equal

Question 39

supply curve

Answer 39

shows the upward slopped relationship of price and quantity

Question 40

elasticity of supply

Answer 40

a change in price leads to a substancial change in quanity supplied and inelastic if not

Question 41

producer surplus

Answer 41

the value the producer recieves from a sale of a good in excess of the marginal cost of producing the good

Question 41

equilibrium price

Answer 41

price at which supply and demand are in balance

Question 41

any price that is higher than equilibirum, prodicers will have one

Answer 41

surplus

Question 42

at prices lower then equlibriym, consumers will find one

Answer 42

shortag

Question 43

changes in equilibirum priece

Answer 43

if determanit change, the equilibriym changes price varies w/ changes in demand in inversely with changes in supply

Question 44

perfect competition

Answer 44

analysis of market price and depends on existnace of many consumers and producers competiting products are almost identical all consumers and prdcudes know the makert decision

Question 45

role of prices in a market economy

Answer 45

act as signals encourage efficient production determine who will recieve goods and services reacts to supply and demand

Question 46

writing compartive and absolute advatnage

Answer 46

(entitiy) has the comparitive/ absolute advantage because (definition) since (data)