Brainscape's Knowledge GenomeTM

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


See full index

Economics > Topic 1 > Flashcards

Topic 1 Flashcards

1
Q

What is scarcity

A

Lack of resources

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

Examples of enterprise

A

Investment

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

Examples of land

A

Rent / where raw material come from

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

What causes a PPf curve to shift to the right

A

Increase in factors of production

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

Cerebus parabus

A

All contributing factors being equal

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

Subsidies

A

When the government help a product or business by funding it more

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

Inelastic good

A

Price wont affect demand

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

Price elastic

A

Price will affect demand

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

Cross elasticity of demand

A

Responsivesnes of demand on one good and how it affects the price of another good

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

Party season near Christmas meaning

A

Positive for substitutes, negative for complimentarys

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

Examples of complimentary goods

A

Toothpaste and tooth brush, football boots and football, petrol and car

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

Examples of substitute goods

A

Coffee and tea, coke and Pepsi

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

What does RATNEST mean in terms of supply shift moving

A

Resource cost,alternative outsource price, tech , number of suppliers, expected future price , subsidies , taxes

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

What does SEPTIC mean in terms of demand curve shifting

A

Subsidy goods , expected future price , population , taste / fashion , income , complimentary good

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

How do you tell if a product is perfectly elastic on a graph

A

Straight horizontal line

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

How do you tell a product is perfectly in elastic on a graph

A

A vertical straight line

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

What is the promblem with merit goods

A

They are underproduced and under used

18
Q

What is the problem with demerit good

A

Over produced and over used

19
Q

What is market failure

A

Missalocation of resources

20
Q

Why is the price ceiling always below equilibrium

A

It will shift demand making price stay reasonable, use on merit goods

21
Q

True or false price floor is used on demerit goods

A

True

22
Q

What is joint demand

A

The demand for one good leads to the demand for another

23
Q

Composite demand

A

The demand for a good that has multiple purpose

24
Q

Joint supply

A

When the supply for one good automatically leads to the supply for another good

25
Q

Examples of composite demand

A

Milk used for all sorts of foods

26
Q

Examples of joint demand

A

Substitute goods

27
Q

Derived demand

A

Cafes in tourist attraction

28
Q

Examples of joint supply

A

Cow beef leather

29
Q

What is the productivity gap

A

The difference between labour productivity

30
Q

What is labour productivity

A

Output per worker

31
Q

Capital productivity

A

Output per unit of capital

32
Q

What is a firm

A

A productive organisation which sells its output of goods

33
Q

What is specialisation

A

A worker only performing one task or a narrow range of tasks

34
Q

What is division of labour

A

Different workers perform different tasks in the course of producing a good or service

35
Q

What is marginal returns of labour

A

The change in the quantity of total output resulting from the employment of one more worker, holding all the other factors of production fixed.

36
Q

Law of diminishing marginal returns

A

A short-term law which states that as a variable factor of production is added to a fixed factor of production,both the marginal and eventually the average returns to the variable factor will begin to fall

37
Q

What does total returns mean

A

The whole output produced by all the factors of production,including labour , employed by a firm

38
Q

Average returns of labour

A

Total output divided by the total number of workers employed

39
Q

What is increasing return to scale

A

When the scale of all the factors of production employed increases,output increases at a faster rate

40
Q

Constant returns to scale

A

When the scale of all the factors of production employed increases,output increases at the same rate

Economics (9 decks)

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