Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
31 Cards in this Set
- Front
- Back
|
Who are the players in economics?
|
Producers, consumers, distributors/retailers, government, stock market
|
|
|
What is the definition of Economics?
|
The study of the production, distribution, consumption, of scarce goods and services
|
|
|
What are examples of a non-durable good?
|
Food
|
|
|
What are examples of a durable good?
|
Houses
|
|
|
What is Microeconomics?
|
-Things on a smaller scale
-Individuals -Consumers -Looks at the players (consumers & firms) |
|
|
What is Macroeconomics?
|
-Things on a larger scale
-U.S. economy -Asks "who are the drivers in our economy?" (Consumers, government, export and import and investors) |
|
|
On a consumer vs. income graph the linear functions have…?
|
A direct relationship
|
|
|
On a consumer vs. income the equation of the line is…?
|
Y=mx+b (where m is the slope and b is the y intercept)
|
|
|
On a consumption function graph what is on the y –axis and what is located on the x-axis?
|
On the y-axis is concumption and on the x-axis is Income
|
|
|
What is the definition of Demand?
|
At every price how much will be bought
|
|
|
What is Income Effect?
|
You feel poor so you buy less
|
|
|
What is the Substitution Effect?
|
Relative to the price of something else price is higher so it makes alternative product look better
|
|
|
What will cause a change in demand/make the entire curve to change?
|
– Population change → the curve would shift right if population increases
– Change in taste and preferences – Change in income → as income goes up, curve moves to the right, as income goes down curve moves to the left – Change in price of related goods → substitution, complement – Special events |
|
|
What is equal at every point along the 45º line?
|
Income & Consumption
|
|
|
A line drawn from where to where equals income?
|
From the x-axis (income) to the 45º line
|
|
|
What is the Law of Downward Sloping Demand?
|
When the price of a good rises, the demand for the good falls (all other things being equal)
|
|
|
On a demand curve what is located on the y-axis?
|
price
|
|
|
on a demand curve what is located on the x-axis?
|
quantity
|
|
|
What is the deffintion of Supply curve?
|
As the price goes (up & down) amount supplied goes (up & down) up with up, and down with down
|
|
|
What causes shifts in the supply curve?
|
-change in price of inputs
-technological changes -demand for relative goods -government policy * tax breaks & subsides (for exports)* -special influences (weather, major world events, company culture) |
|
|
If price of inputs goes up and the supply curve goes left, what happens to the equalibrium point & quantity?
|
the equalibrum point goes up and quantity goes down
|
|
|
You are a steal importer and the goverment puts a tax on imported steal what happens to your supply and demand curves?
|
the price would go up to p2 and if the price goes up all you know is demand quantity goes down
|
|
|
If population goes up the demand goes______, so the demand curve shifts to the _______.
|
up
right |
|
|
The demand curve is ___________ sloping.
|
downward
|
|
|
On a demand curve Price and Quantity are _________ related.
|
inversly
|
|
|
Describe income effect.
|
as price moves up money doesn't go as far
|
|
|
Describe substitution effect.
|
if price goes up you choose a different product, a change in price or quantity does not shift the demand curve
|
|
|
The Supply curve is _________ sloping.
|
upward
|
|
|
On a supply curve Price and Quantity are ___________ related.
|
directly
|
|
|
What does GDP stand for?
|
Gross domestic product
|
|
|
What is GDP?
|
the total amount of goods and services produced
|
