Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics > Micro Key Terms > Flashcards

Micro Key Terms Flashcards

1
Q

Positive statement

A

A statement that can be scientifically tested to see if it is correct or incorrect

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

Normative statement

A

A statement that includes a judgment and cannot be scientifically tested.

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

Need and want

A

Need- necessary for human survival, food clothing shelter warmth
Want- something desirable such as fashionable clothing

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

Economic welfare

A

Economic well-being of an individual, group within a society or an economy.

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

Production

A

A process that converts inputs to outputs.

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

Capital good

A

A good which is used in the production of other goods and services (producer good).

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

Consumer good

A

A good consumed by individuals or households to satisfy their needs and wants.

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

Factors of production

A

Inputs into the production process such as capital enterprise land and labour.

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

Finite and renewable resources

A

A resource such as oil which is scarce and runs out as it is used

A resource such as timber that can be renewed as it is used with careful management.

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

Fundamental economic problem

A

How best to make decisions about the allocation of scarce resources so that it maximises human happiness and welfare.

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

Scarcity

A

Unlimited wants but limited resources

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

Opportunity cost

A

The cost of giving up the best next alternative

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

PPF Curve

A

Used to show different combinations of products that can be produced when all resources are at full capacity.

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

Economic growth

A

Increase in the potential level of real output the economy can produce over a period of time. Measured in gdp.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Unemployment

A

When someone who is willing and able to work is not employed.

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

Competitive market

A

Large number of buyers and sellers

Can easily enter or leave the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Equilibrium price

A

When demand equals supply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Supply

A

The quantity of a good or service that firms are will and able to sell at a given price in a given time period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Demand

A

The quantity of a good or service that consumers are willing and able to buy at given prices over a given time period.

20
Q

Market demand

A

The quantity of a good or self odd that all the consumers in a market are willing and able to buy at different market prices.

21
Q

Law of demand

A

As a goods price falls we demand more

22
Q

Reasons for changes in demand

A

Price of substitute and complementary goods
Personal income
Tastes and preferences
Population size

23
Q

Normal good

A

Demand increases as income increases

24
Q

Inferior hood

A

As demand decreases income rises

25
Q

Ped and equation

A

The responsiveness of quantity demanded to a change in the price of the product.

Change in quantity demanded \ change in price
Percentage change change/ original x 100

26
Q

Elastic and Inelastic

A

Elastic is more than 1

In elastic is less than 1

27
Q

Factors determining ped

A 
Availability of substitutes
Percentage of income spent on good
Necessities or luxuries
Time
Width of market
28
Q

Income elasticity of demand and equation

A

The responsiveness in quantity demanded to a change in income

Change In demand/ change in income

Inferior goods negative
Luxury more than 1 basic between 0 and 1

29
Q

Cross elasticity of demand and equation

A

The responsiveness of quantity demanded for one good to a change in price of another good.
Change in demand of a/ change in price of b

Normally I elastic

30
Q

Profit

A

Total revenue- total cost of production

31
Q

Revenue

A

Price x quantity sold

Money form receives from selling output

32
Q

Changes In supply

A 
Wage costs
Raw material costs
Energy costs
Cost of borrowing 
Taxes
Subsidies
33
Q

Pes and equation

A

The responsiveness of quantity supplied to a change in the price of the product

Change in quantity supplied/ change in price

34
Q

Factors determining pes

A 
Length of production process
Availability of spare capacity 
Ease of accumulating stock
Ease of switching methods of production 
Number of firms in market
Time- short run is elastic
35
Q

Disequilibrium

A

When there is excess demand or supply

36
Q

Excess supply and demand

A

Supply- firms wish to sell more than consumers wish to buy, price above equilibrium
Demand- consumers wish to buy more than firms wish to sell, price below equilibrium

37
Q

Productivity
Labour
Capital

A

Output per unit of input.
Output per worker
Output per unit of capital

38
Q

Productivity gap

A

Difference between labour productivity in the uk and other well developed economies.

39
Q

Specialisation

A

A worker/ firm only performing one task.

40
Q

Trade and exchange

A

Buying and selling of goods and services

Giving something in return for something else, money is a medium of exchange.

41
Q

Long run

A

All factors of production can be changed

42
Q

Average cost

A

Total cost of production/ output

43
Q

Total cost

A

The whole cost of producing a particular level of output.

44
Q

Variable cost

A

Wage costs or costs of raw materials.

45
Q

Average revenue

A

Total revenue/ output

46
Q

Functions of price

A

Signalling
Incentive
Rationing
Allocative

Economics (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions