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20 Cards in this Set

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  • Back
What is economics all about?
Scarcity and efficient allocations resources
macroeconomics
the big picture
overall economy
aggregation/aggregate economic activity
GDP
microeconomics
focuses on the individual units that make up an economy
ceteris paribus means
other things being equal
positive economics deals with
cause and effect
"what it is"
normaltive economics deals with
what ought to be
value judgement
opportunity cost
the highest alternative that one has to give up in order to make a choice
the best alternative that you forego when you are engaged in any activity
opportunity cost
fundamental problem faced by all economies
scarcity
law of demand holds that
price and quantity demanded are inversely related
the numerical counterpart of the demand curve is
demand schedule
changes or movement along a single demand curve are changes in the
quantity demanded caused by a change in price
if there is a surplus of a particular good
the price is above equilibrium
equilibrium price is achieved when
the quantity demanded is equal to the quantity supplied
thoe horizontal sum of all individual demand curves
market demand curve
a table listing the various quantities of a product that the individual is willing and able to buy at each possible price in a specific period of time
demand schedule
the willingness and ability to acquire goods and services
demand
shows how many units of a good x that producers are willing and able to bring to the market at various prices at any given time period
supply schedule
determinants of supply
1. technology
2. price of resources
3. # of producers/suppliers
4. price of other goods
5. price expectation
6. natural factors such as drought, floods, hurricanes
factors influencing demand
1. income
2. income distribution
3. population
4. changes in the composition of population
5. price of other goods
- price of complementary goods
- price of substitute goods
6. taste or preference of consumer