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ECON 1010 > econ > Flashcards

econ Flashcards

1
Q

percentage change

A

value in second period-value of first period divided by first value multiplied by 100

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2
Q

opportunity cost

A

the value of the best alternative

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3
Q

absolute advantage

A

the ability to produce more of a good/service than competitors using same amount of resources

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4
Q

comparative advantage

A

the ability to produce a good/service at a lower opportunity cost than other producers

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5
Q

economics

A

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

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6
Q

scarcity

A

a situation in which unlimited wants exceed the limited resources available to fufill those wants

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7
Q

rational

A

people make choices based on what they believe will make them happy

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8
Q

marginal cost/benefit

A

the additional cost or benefit associated with a small amount extra of some action

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9
Q

market

A

a group of buyers and sellers of a good or service

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10
Q

mixed economy

A

some central planning and some markets (CAN)

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11
Q

productive efficiency

A

where goods and services are produced at the lowest possible cost

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12
Q

allocative efficiency

A

where production is consistent with consumer preferences, marginal benefit of production=marginal cost

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13
Q

positive analysis

A

analysis relying on facts or logic, economies should stick to positive analysis

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14
Q

normative analysis

A

analysis relying on value judgements

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15
Q

microeconomics

A

the study of how households and firms make choices, how they interact in markets, and how the gov’t attempts to influence

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16
Q

macroeconomics

A

the study of the economy as a whole

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17
Q

technology

A

the processes a firm uses for turning inputs into outputs of goods and services

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18
Q

capital

A

durable manufactured goods that are used to produce other goods/services

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19
Q

model

A

simplified version of reality, shows essential details only

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20
Q

production possibilities frontier (PPF)

A

a curve showing the maximum attainable combinations of 2 products that may be produced with available resources

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21
Q

economic growth

A

the ability of the economy to increase the production of goods/services

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22
Q

trade

A

the act of exchanging one thing for another

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23
Q

free market

A

one with few gov’t restrictions on how a good/service can be produced or sold

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24
Q

property rights

A

the rights individuals or firms have to the exclusive use of their own property

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25
Q

3 characteristics or perfect competition

A

1) many buyers and sellers
2) identical products
3) no barriers to entry

26
Q

demand curve

A

shows relationship between the price of a product and the quantity demanded

27
Q

market demand

A

the demand by all consumers of a given good or service

28
Q

law of demand

A

when the price falls, quantity demanded will rise

29
Q

substitution effect

A

the change in quantity demanded due to a change in price making the good more/less expensive relative to other goods

30
Q

income effect

A

the change in the quantity demanded due to the effect of a change in a good’s price on comsumers purchasing power

31
Q

normal good

A

a good for which the demand increases as income rises (vacations, restaurant meals)

32
Q

inferior good

A

a good for which the demand decreases as income rises (ramen noodles)

33
Q

substitutes

A

goods and services that can be used for the same purpose (Big Mac, Whopper)

34
Q

complements

A

goods and services that are used together (burger and fries)

35
Q

supply curve

A

shows relationship between price of a product and the quantity supplied

36
Q

the law of supply

A

holding everything else constant, when the price rises quantity supplied increases

37
Q

market equilibrium

A

a situation in which quantity demanded equals quantity supplied

38
Q

surplus

A

a situation where Qs is greater than Qd

39
Q

shortage

A

a situation where Qd is greater than Qs

40
Q

consumer surplus

A

the difference between the highest price a consumer is willing to pay vs what they actually pay

41
Q

producer surplus

A

the difference between the lowest price a firm would be wiling to accept a good/service and the price it actually recieves

42
Q

marginal benefit

A

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

43
Q

marginal cost

A

the additional cost to a firm of producing one more unit of a good or service

44
Q

economic efficiency

A

a market outcome in which the MB to consumers of the last unit produced is equal to its MC of production

45
Q

deadweight loss

A

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

46
Q

price ceiling

A

a legally determined maximum price sellers can charge

47
Q

price floor

A

a legally determined minimum price that sellers may receive

48
Q

black market

A

a market in which buying and selling take place at prices that violate gov’t price regulations

49
Q

tax incidence

A

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

50
Q

externality

A

a benefit or cost that affects someone who is not directly involved in the production or consumption of a good/service

51
Q

private benefit

A

the benefit received by the consumer of a good or service

52
Q

social benefit

A

the total benefit from consuming a good/service including the private benefit and any external benefit

53
Q

market failure

A

a situation in which the market fails to produce the efficient level of output

54
Q

transaction costs

A

costs in time and other resources that parties incur during the process of agreeing to and carrying out an exchange

55
Q

subsidy

A

an amount paid to producers or consumers to encourage the production or consumption of a good

56
Q

rivalry

A

situation that occurs when one persons consuming a unit of a good means no one else can consume it

57
Q

excludability

A

situation in which anyone who does not pay for a good cannot consume it

58
Q

budget constraint

A

the limited amount of income available to consumers to spend on goods/services

59
Q

network externalities

A

situations in which the usefulness of a product increases w/ the number of consumers who use it

60
Q

technological change

A

a change in the ability of a firm to produce a given level of output with given quantity of inputs

61
Q

explicit costs

A

a cost that involves spending money

62
Q

implicit costs

A

a non monetary opportunity cost

ECON 1010 (1 decks)

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