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1
Q

What is market = lib ?

what does an increase in demand trigger?

A

Relationship between Supp and Dem

inc. in dem increases = lib price and quantity spent

2
Q

What causes a shift in demand curve? (5)

A

1.no. buyers
2. their income
3prefs
4.cust. expectations
5. price

3
Q

What causes shift in supply curve? (5)

A
  1. tech
  2. competition
  3. resource prices
  4. taxes
  5. producer expectations
4
Q

Describe two types of price controls? both mandated by get!!

A
  1. celings = max price seller charge ex wage

2. floor= min price seller charge, ex min wage

5
Q

purpose of ceilings and floors?

A

prevent market failure

6
Q

describe market failure?

what are its causes? (2)

A

too many/ few resources used in production

causes: comp, income in=lity

7
Q

what is externality ?

A

Cost or + for third party (unforeseen)

8
Q

Give a positive and (-) externality?

A
(+)= vaccination
(-) = pollution
9
Q

What is elasticity ?

A

RESPONSiveness 2 price change

10
Q

How to calc. price elasticity of demand? Ed=?

A

%change dem/ % change price

11
Q

What is elastic dem?

A

%change in quant > % change in Pr.

12
Q

Whats inelastic demand?

A

change of <1% in quant. den. in rest. to 1% change Pr.

13
Q

Define total revenue?

A

income from sale good/ service

14
Q

What is unitary elastic demand?

A

1%change in quant dem in resp. to 1% change in Pr

15
Q

What is perfectly elastic?

A

dec. quant. 2 0!! for slight change in pr.

16
Q

Whats perfectly inelastic?

A

no change in quant when price changes

17
Q

What 3 things influence demand sensitivity ?

A
  1. avail. of subs
  2. prod. budget
  3. price changes/ Time
18
Q

whats X elasticity of dem?

A

ratio of % change in quant. dem. 4 a good to change in price of ANOTHER good

19
Q

What is tax incidence ?
more elastic who pays?
less?

give an ex?

A

share paid by buyer/ seller

more elastic dem= more corp pays (if demand is greater than price change!)

20
Q

Define utility ?

A

unit 2 measure utility from cons. a good

21
Q

Total utility an amount of?

A

SATISFACTION from all units of good/ serv.

22
Q

Marginal utility?

A

change in tot. ut. from +1 ADDITIONAL UNIT of good/ serve.

23
Q

What 2 things does the law of diminishing marginal utility decrease as CONSUMP. INCREASES?

A
  1. Marg utility dec.

2. satisfaction dec.

24
Q

Diff between (+) and normative economics?

A
(+)= verifiable, facts numbers
norm= opition, ex- ''cut social contribution back to benefit economics''
25
Q

Give an example of an INVERSE realationship?

A

as Price dec. quantity purchased increases!

26
Q

Give an example of independent relationship?

hint : crazy woof woof!

A

1 variable changes other does not

ex- expenditure on rabies vaccination vs. annual income

27
Q

What happens on a curve when price changes?

What happens when other than price changes?

A

MVMT!

ShiFT!

28
Q

When does SHIFT occur in curve? (2 scenarios)

A
  1. ONLY when ceteris Paribus assumption RELAX

2. 3rd variable NOT on axis changes

29
Q

2 places income in=lity is greatest?

within the EU?

A
  1. USA
  2. Africa
  3. Russia
  4. Ukraine
30
Q

What is is Opportunity cost? give an example of high opp cost ?

A

best alt. sacrificed for chosen alt.

Ex vet degree

31
Q

What is marg. analysis comparing? vs?

A

Benefits vs. COST of change

32
Q

What is PROD. POSS. Curve?

ex?

A

max. combination of 2 outputs prod in pd time
LRG animal = EFF
sml- not attain

33
Q

When does OPP cost increase?

A

as prod of output expands

34
Q

When does resource sust. decrease ?

A

as Gr8r amt. transferred from prod of 1 output 2 another

35
Q

Whats implicit cost?

A

intangible cost, not easily returned

36
Q

What is OPP cost? ex. rent

A

income could have been earned by selling/ renting input to another
ex. storehouse

37
Q

What is OPP cost ex. start up opp. cost?

A

additional income received if input used in MOST PROFITABLE/ alternative use

38
Q

Describe direct cost/ vs indirect?

A

direct- price given to prod. of good/ service ex food additives
indirect- depreciation or admin expenses!

39
Q

What do we subtract for accounting profit?

hint TOT-TOT

A

Total rev - tot explicit & ACCOUNTABLE implicit costs

40
Q

what is subtracted for economic profit?

A

Tot rev- tot explicit + implicit costs

41
Q

What is normal profit?

A

Earns TOT rev = to its total economic cost

42
Q

Def. net income?

A

income= Product value- product costs + labor costs

43
Q

Def. gross margin?

A

Product value- VARIABLE costs

44
Q

How to calc. AVG fixed cost?

hint divide!

A

tot. fixed cost/ OUTPUT

45
Q

Short vs long run costs

give an example in practice?

A
short = 1 fixed input 
long= no fixed costs! 

ex- plant size deep on production level, hiring a vet nurse?

46
Q

What is Avg tot. cost a sum of?

A

avg. FIXED COST + avg. VARIABLE cost

47
Q

what are economies of scale as output inc?

A

long run avg cost curve dec

48
Q

What are constant returns 2 scale as output inc?
IF your K you will —–?

what are Diseconomies of scale as out inc? HINT = SAME!!!

A

in both DIS AND K returns to scale long run cost curve rise

49
Q

Give 2 ex of a sunk cost?

A
  1. Antibiotic development

2. inventory costs

50
Q

what is explicit cost?

give an example

A

easily ID’d & accounted for
cashoutflows
payments to non owners of a firm for their resources

Ex- wage expense

51
Q

calc marginal product? what to divide

A

output/ labor input

52
Q

calc. tot rev

A

no. out X Price/ unit

53
Q

What is profit the margin between?

A

margin between total rev. and total cost

54
Q

what is the diff. btwn nominal and real price?

A

PHENOMINON IN INFLATION

55
Q

in the middle east how much of the budget is spent on food?

A

half

56
Q

how much have prices increased for food?

A

<80%

57
Q

Which meat is traded in largest?

A

CHICKEN

58
Q

Who is the biggest food importer globally?

A

Russia

59
Q

Who has the most robust pig meat prod and consumed?

A

CHINA

60
Q

Which 3 N. African countries buy most cereal ?

A
  1. EGYPT
  2. LIBYA
  3. ALGERIA
61
Q

What is OEDC?

A

Org. Eco. Cooperation & Develop.

62
Q

Which meat consumed most in EU?

A

PIGGY

63
Q

3 biggest meat producers?

A
  1. China
  2. Eu 28
  3. USA
  4. BRAZIL
64
Q

IN EU 3 biggest meat prod?

A
  1. GERM
  2. FR- receive most ag. subsidies
  3. SPAAIN
65
Q

What is the EU council in BRUSS?

A

because its neutral (1/2 btwn france and germ)

66
Q

in what year did the eastern enlargement of the EU happen?

What joined in 2007?
In 2013?

A

2004

Rom, Bulg
Croatia

67
Q

Where is the european parliament?

How often are EU parl. elections?

A

Strausburg FRANCE

ONCE EVERY 5 yr

68
Q

What kind of EU body is in Frankfurt? importance?

A

The EU central bank , set the primary rate for the EUROZONE

69
Q

POP of canada?

Pop EU ?

A

35 million

half a billion

70
Q

Which 3 countries are in NAFTA?

A
  1. USA 2. Canada 3. MEX
71
Q

pop of mexico?

A

100 mill

72
Q

In expenditure Give 3 ex of natural units

A
  1. Water in Ls
  2. forage
  3. antibiotics
73
Q

2 examples of production function examples?

A
  1. avg daily gain in cattle

2. anti parisite

74
Q

Why is marg. cost calculated as change in tot. variable over change in quantity ?

A

FIXED COST = NOT CHANGING

change only seen in VARIABLE

75
Q

Calc avg fixed cost?

A

tot fixed cost/ quant. of output

76
Q

Why does avg fixed cost decline?

A

when QUANT inc. PROD inc. tot. fixed cost ALWAYS STABLE

77
Q

What is marginal value avg . rule?

A

MARG cost < avg. avg fails!

78
Q

what happens when marg cost is > than avg ?

A

AVG rises

79
Q

What relationship does prod. function show?

A

Btwn output & input

80
Q

Whats marginal cost change in ?

A

Total cost to +1 unit output