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32 Cards in this Set
- Front
- Back
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What is the Invisible Hand?
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All the ppl acting in their own interest maximinzing welfare society as a whole.
(ADAM SMITH) |
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What is a Free Market system?
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Where the government had no control over supply or demand.
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What is Globalization?
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Increasing itergration and interdependence of the worlds econmies.
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What is Opportunity Cost?
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Best thing you must give up to get it.
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What is Marginal Cost?
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The opportunity cost of a one unit increase in output.
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What is Marginal Revenue?
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The change in total revenue from a one unit increase in quanity sold.
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What is a Positive Statement?
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A statement with no opinion.
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What is a Normative Statement?
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A statement with an opinion.
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What is Cetersparibus?
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Holding everything elce equal.
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What are the 4 factors of production?
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Land, Labor, Entreprenuership, Capital.
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What is GDP?
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Total value of final goods and services.
GDP=Investment+Government Spending+Consumption+Net Exports |
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What is Production Possibility Frontier?
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The curve that shows the combination of goods and services that can be produced with maximized resources and technology.
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What is absolute advantage?
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When when country can produce something cheaper than another country.
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What is comparitive advantage?
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When a country can produce something at a cheaper opportunity cost than another.
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What is the Law Of Demand?
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When the price is high, the quantity is less.
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What is the Law Of Supply?
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When the price is low, quantity supply is low.
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What is equilibrium?
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When supply and demand are the same.
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What is a Normal Good?
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When income increases, you buy more at the same price.
You shift up. |
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What is an Inferior Good?
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When income increase, you buy less at the same price.
You shift down. |
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What is Price Elacticity of Demand?
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Percent change in quantity divided by percent change in price.
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What is Elastic?
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When quantity demanded is affected by the change in price.
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What is Inelastic?
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When the quantity demand is not affect by the change in price.
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What is the Mid Point Formula?
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Percent change is equal to change divided by mid point times 100.
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What is the price floor?
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The lowest a price can go.
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What is external cost?
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Cost imposed by other than buyer or seller, a third party.
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What is external benifit?
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Benefits to the third party.
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What is Monopolistic Competition?
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When many firms competer with similar but different products.
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What is Perfect Competition?
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When another firm has the same product at a lower price and higher quantity.
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What is the Golden Rule Of Profit Maximization?
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When marginal cost equals marginal revenue.
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What is a monopoly?
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When one company has complete control on a good or service.
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What is single priced monoploy?
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A monopoly that must sell equal units and equal prices.
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What is price discriminting monopoly?
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A monopoly that sells different units at different prices.
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