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multiple choice Flashcards

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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

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2
Q

What causes a shift in demand curve? (5)

A

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

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3
Q

What causes shift in supply curve? (5)

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

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5
Q

purpose of ceilings and floors?

A

prevent market failure

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6
Q

describe market failure?

what are its causes? (2)

A

too many/ few resources used in production

causes: comp, income in=lity

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7
Q

what is externality ?

A

Cost or + for third party (unforeseen)

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8
Q

Give a positive and (-) externality?

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

What is elasticity ?

A

RESPONSiveness 2 price change

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10
Q

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

A

%change dem/ % change price

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11
Q

What is elastic dem?

A

%change in quant > % change in Pr.

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12
Q

Whats inelastic demand?

A

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

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13
Q

Define total revenue?

A

income from sale good/ service

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14
Q

What is unitary elastic demand?

A

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

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15
Q

What is perfectly elastic?

A

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

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16
Q

Whats perfectly inelastic?

A

no change in quant when price changes

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17
Q

What 3 things influence demand sensitivity ?

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

whats X elasticity of dem?

A

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

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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!)

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20
Q

Define utility ?

A

unit 2 measure utility from cons. a good

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21
Q

Total utility an amount of?

A

SATISFACTION from all units of good/ serv.

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22
Q

Marginal utility?

A

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

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23
Q

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

A
  1. Marg utility dec.

2. satisfaction dec.

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24
Q

Diff between (+) and normative economics?

A 
(+)= verifiable, facts numbers
norm= opition, ex- ''cut social contribution back to benefit economics''
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25
Give an example of an INVERSE realationship?
as Price dec. quantity purchased increases!
26
Give an example of independent relationship? | hint : crazy woof woof!
1 variable changes other does not | ex- expenditure on rabies vaccination vs. annual income
27
What happens on a curve when price changes? | What happens when other than price changes?
MVMT! ShiFT!
28
When does SHIFT occur in curve? (2 scenarios)
1. ONLY when ceteris Paribus assumption RELAX | 2. 3rd variable NOT on axis changes
29
2 places income in=lity is greatest? within the EU?
1. USA 2. Africa 1. Russia 2. Ukraine
30
What is is Opportunity cost? give an example of high opp cost ?
best alt. sacrificed for chosen alt. Ex vet degree
31
What is marg. analysis comparing? vs?
Benefits vs. COST of change
32
What is PROD. POSS. Curve? | ex?
max. combination of 2 outputs prod in pd time LRG animal = EFF sml- not attain
33
When does OPP cost increase?
as prod of output expands
34
When does resource sust. decrease ?
as Gr8r amt. transferred from prod of 1 output 2 another
35
Whats implicit cost?
intangible cost, not easily returned
36
What is OPP cost? ex. rent
income could have been earned by selling/ renting input to another ex. storehouse
37
What is OPP cost ex. start up opp. cost?
additional income received if input used in MOST PROFITABLE/ alternative use
38
Describe direct cost/ vs indirect?
direct- price given to prod. of good/ service ex food additives indirect- depreciation or admin expenses!
39
What do we subtract for accounting profit? | hint TOT-TOT
Total rev - tot explicit & ACCOUNTABLE implicit costs
40
what is subtracted for economic profit?
Tot rev- tot explicit + implicit costs
41
What is normal profit?
Earns TOT rev = to its total economic cost
42
Def. net income?
income= Product value- product costs + labor costs
43
Def. gross margin?
Product value- VARIABLE costs
44
How to calc. AVG fixed cost? | hint divide!
tot. fixed cost/ OUTPUT
45
Short vs long run costs | give an example in practice?
``` short = 1 fixed input long= no fixed costs! ``` ex- plant size deep on production level, hiring a vet nurse?
46
What is Avg tot. cost a sum of?
avg. FIXED COST + avg. VARIABLE cost
47
what are economies of scale as output inc?
long run avg cost curve dec
48
What are constant returns 2 scale as output inc? IF your K you will -----? what are Diseconomies of scale as out inc? HINT = SAME!!!
in both DIS AND K returns to scale long run cost curve rise
49
Give 2 ex of a sunk cost?
1. Antibiotic development | 2. inventory costs
50
what is explicit cost? | give an example
easily ID'd & accounted for cashoutflows payments to non owners of a firm for their resources Ex- wage expense
51
calc marginal product? what to divide
output/ labor input
52
calc. tot rev
no. out X Price/ unit
53
What is profit the margin between?
margin between total rev. and total cost
54
what is the diff. btwn nominal and real price?
PHENOMINON IN INFLATION
55
in the middle east how much of the budget is spent on food?
half
56
how much have prices increased for food?
<80%
57
Which meat is traded in largest?
CHICKEN
58
Who is the biggest food importer globally?
Russia
59
Who has the most robust pig meat prod and consumed?
CHINA
60
Which 3 N. African countries buy most cereal ?
1. EGYPT 2. LIBYA 3. ALGERIA
61
What is OEDC?
Org. Eco. Cooperation & Develop.
62
Which meat consumed most in EU?
PIGGY
63
3 biggest meat producers?
1. China 2. Eu 28 3. USA 4. BRAZIL
64
IN EU 3 biggest meat prod?
1. GERM 2. FR- receive most ag. subsidies 3. SPAAIN
65
What is the EU council in BRUSS?
because its neutral (1/2 btwn france and germ)
66
in what year did the eastern enlargement of the EU happen? What joined in 2007? In 2013?
2004 Rom, Bulg Croatia
67
Where is the european parliament? | How often are EU parl. elections?
Strausburg FRANCE | ONCE EVERY 5 yr
68
What kind of EU body is in Frankfurt? importance?
The EU central bank , set the primary rate for the EUROZONE
69
POP of canada? | Pop EU ?
35 million | half a billion
70
Which 3 countries are in NAFTA?
1. USA 2. Canada 3. MEX
71
pop of mexico?
100 mill
72
In expenditure Give 3 ex of natural units
1. Water in Ls 2. forage 3. antibiotics
73
2 examples of production function examples?
1. avg daily gain in cattle | 2. anti parisite
74
Why is marg. cost calculated as change in tot. variable over change in quantity ?
FIXED COST = NOT CHANGING | change only seen in VARIABLE
75
Calc avg fixed cost?
tot fixed cost/ quant. of output
76
Why does avg fixed cost decline?
when QUANT inc. PROD inc. tot. fixed cost ALWAYS STABLE
77
What is marginal value avg . rule?
MARG cost < avg. avg fails!
78
what happens when marg cost is > than avg ?
AVG rises
79
What relationship does prod. function show?
Btwn output & input
80
Whats marginal cost change in ?
Total cost to +1 unit output

agroeconomics (1 decks)

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