Midterm Pt.2 Flashcards
(34 cards)
Who is Dr. Robert Schiller
He talked about efficient markets, came up with the term animal spirit, and said markets drive itself
Scarcity
Unlimited wants with limited resources and it compels choice
What is market equilibrium
Where buyer and seller meet
Supply and Demand
More demand increases prices if demand goes down price falls
The invisible hand
meets their own self interest
Opportunity cost
The cost of what you forgo
example of opportunity cost
Going to law school full-time and giving up time with family and friends
Trade-Off
The consequence of an economic decision
Price-ceiling
Sets the market equilibrium below landlords are not able to price their own property
What is an example of a price floor
minimum wage
What is a black market
an illegal un-tax regulated market
Define Subsidy
Where the government supports the market
When Trump was president, what market did he subsidised
Soybean market
What market did Biden subsidize
Clean energy
What is the curve of elastic goods
the curve is flat
What is the curve of inelastic goods
The curve is steep
Summary of Mommie Dearest
The topic of elasticity, price taker, and a famous actress can ruin their reputation.
Marginal Cost
The increase in total cost that arises from an extra unit of production
Varibale Cost
A cost that changes like a bonus
What is the average total cost?
Average total cost is the cost divided by the quantity of output
Marginal Revenue = Marginal Cost
the production point
Law of Diminishing Returns
Productivity falls, and business starts posting losses
Economies of Scale
How efficient you are when you raise production
Efficient Markets
Explains the market knows how to set the price
