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20 Cards in this Set
- Front
- Back
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What is economics all about?
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Scarcity and efficient allocations resources
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macroeconomics
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the big picture
overall economy aggregation/aggregate economic activity GDP |
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microeconomics
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focuses on the individual units that make up an economy
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ceteris paribus means
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other things being equal
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positive economics deals with
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cause and effect
"what it is" |
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normaltive economics deals with
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what ought to be
value judgement |
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opportunity cost
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the highest alternative that one has to give up in order to make a choice
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the best alternative that you forego when you are engaged in any activity
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opportunity cost
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fundamental problem faced by all economies
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scarcity
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law of demand holds that
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price and quantity demanded are inversely related
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the numerical counterpart of the demand curve is
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demand schedule
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changes or movement along a single demand curve are changes in the
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quantity demanded caused by a change in price
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if there is a surplus of a particular good
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the price is above equilibrium
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equilibrium price is achieved when
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the quantity demanded is equal to the quantity supplied
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thoe horizontal sum of all individual demand curves
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market demand curve
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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
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demand schedule
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the willingness and ability to acquire goods and services
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demand
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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
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supply schedule
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determinants of supply
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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 |
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factors influencing demand
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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 |
