Quiz #3 Vocab Flashcards Preview

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Flashcards in Quiz #3 Vocab Deck (17):
0

Consumera are relatively less sensitive to price changes; %

Inelastic demand

1

Consumers are proportionately sensitive to price changes; %

Unit elastic demand

2

Consumers are relatively sensitive to price changes; %

Elastic demand

3

Small increase in price will cause quantity demanded to fall to zero; flat demand curve; coefficient = infinity

Perfectly elastic

4

Consumers will buy the same quantity of a good regardless of price; vertical demand curve; coefficient =0

Perfectly in elastic

5

Price x quantity sold

Total revenue

6

Revenue per unit of output; total revenue/quantity

Average revenue

7

Revenue earned on one additional unit of output

Marginal revenue

8

Costs that do not change with output levels; will be lost in the event of a shutdown

Fixed costs

9

Costs that will change with output; firms can operate as long a P_>(greater than or equal to) AVC

Variable costs

10

Fixed cost+variable costs

Total cost

11

The cost of making one more unit of output;

Marginal cost

12

Revenue minus cost

Profit

13

Profit gained from selling one more unit of output

Marginal profit

14

Profit earned on each unit of output

Average profit (profit per unit)

15

Market for a good (usually a financial security) when it's initially sold

Primary market

16

Market for a good (usually a financial security) when it is brought and sold from other owners/investors and not from the original issuer

Secondary market