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15 Cards in this Set
- Front
- Back
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What is economic growth determined by?
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1. Trade
2. Discovery of new natural resources 3. innovation that increases technology 4. technology 5. Human Capital (education, health) |
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What is the main problem of Economics?
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Scarcity
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Define Scarcity
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The inability to satisfy all our wants
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Positive Economic
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What it actuall is
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Normative Economic
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what ought to be
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What are signals to price changes?
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1. Cost of production
2. Greater Quanity 3. How much consumers are willing to pay 4. Percieved Value |
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Demand
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any amount of a good people are both willing and able to buy at different prices
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Law of demand
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As price increases, quanity decreases.
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relationship of price vs. demand
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inverse relationship
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Determinants of Demand
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1. Income increases, Demand increases
2. Prices of related goods 3. consumer tastes and preferences 4. Expectations 5. Population (increase population, increase demand) |
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Substitues
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interchangeable goods
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Complementary goods
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Consumed together
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Law of Supply
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Price increases, Quanity increases
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Profit equation
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Revenue-costs
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Determinants of Supply
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1.Cost of inputs
2. Technology increases, supply increases 3. Expectations |
