Business Flashcards
What does the acronym TALL stand for?
Title axis label line This is used to set a graph up properly.
What does the acronym PASIFIC stand for?
population advertising substitutes income fashion investment complement. These are factors that can affect the price of a product.
What happens to the graph when there is an increase in demand?
The graph will move up and to the right.
What happens to the graph when there is a decrease in demand?
The graph will move down and to the left.
What is the Law of demand?
When a price goes up, demand for the product goes down.
What is the law of supply?
The higher the price of a good is, the more the producers will make.
Normal vs inferior goods.
Normal goods are goods that consumers will buy in greater quantities. Inferior goods are ones that consumers will buy as income increases. E.G fastfood==> steak.
What is Ceteris Paribus?
It means that we assume that all factors stay the same.
What is opportunity cost?
It is the second most economic decision.
What are complementary goods?
It is a good that goes with another good.
What are substitutes?
It is a good that can be used instead of another good.
What is a surplus and its difference from a shortage?
A surplus is when the producers produce too much of a good. A shortage is when there is not enough goods to support the demand from consumers.
Assets vs liabilities
Assets are things that are owned by the person and liabilities are things that you owe to someone or a bank.
