Microeconomics

Front 1

Adam smith

Back 1

Scottish philosopher in 1776 wrote Wealth of Nations. People acting in their own self interest can be better for a society than those trying to be. "Led by an invisible hand" , brings the greatest value product.

Hint 1

Scottish philosopher - wealth of nations

Front 2

Microeconomics

Back 2

Study of individual economic actors such as the individual or corporation. Actors make decisions/allocations concerning scarce resources.

Hint 2

Small scale players

Front 3

Macroeconomics

Back 3

Study of the holistic economy. What happens to the aggregate economy based on actions of all the small actors. Usually addresses questions of economic policy.

Hint 3

Large scale

Front 4

Law of demand

Back 4

All things being equal, If you raise the price of a product it will lower the quantity demanded of the product and conversely if you lower the price of a product it will increase the quantity demanded

Hint 4

Price v. Demand

Front 5

Demand

Back 5

The relationship between price and quantity demanded

Hint 5

Not a quantity

Front 6

Demand Curve

Back 6

A graph showing get the relationship between price and quantity demanded.

Front 7

Demand schedule

Back 7

A table showing get the relationship between price and quantity demanded.

Front 8

Price of substitute products

Back 8

As price goes up for a type of good, a specific good which stays the same, shifts curve to the right for that specific good.

Hint 8

How it effects demand curve

Front 9

Substitute

Back 9

2 goods of a class that serve the same purpose (interchangeable)

Hint 9

As it relates to goods

Front 10

Compliment

Back 10

A good that supports another good. A kindle is a compliment to ebooks

Hint 10

As it relates to goods

Front 11

Price of complimentary products

Back 11

As the price of complimentary goods goes up, the demand decreases

Hint 11

How it effects the demand curve

Front 12

Expectations of future prices

Back 12

If people expect price to go up, it will increase demand or shift the graph right, if they expect the price to go down, it will decrease the demand or cause the graph to go left

Hint 12

How it effects demand curve

Front 13

Impact of income changes

Back 13

If income goes up, demand goes up, if income goes down, demand goes down. (Only true for normal goods, not inferior goods)

Hint 13

Impact on demand

Front 14

All things not being equal

Back 14

Price of substitute goods, price of complimentary goods, expectations of future prices, income levels, population, preference

Hint 14

What we have to keep equal for law of demand to be true

Front 15

Impact of population on demand

Back 15

If population goes up or the composition shifts toward the upper class, demand goes up, if population goes down or the composition shifts toward lower class, demand goes down.

Front 16

Impact of preference on demand

Back 16

If an outside force impacts population preference it will impact demand if preference is shifted toward our away crook a product

Front 17

Normal good

Back 17

A good that adheres to the law of demand with all things being equal including changes in populace income.

Front 18

Inferior good

Back 18

A good that does not obey the law of demand when populace income changes. It will behave the opposite of a normal good (think of economy items - they are inferior goods)

Front 19

Ceteris Peribus Assumption

Back 19

Latin for "other things being equal" and pertains to the law of demand

Front 20

Law of supply

Back 20

All other things being equal, If the price of a good goes up, the quantity supplied will also go up. If the price goes down, the quantity supplied will also go down.

Front 21

Supply Curve

Back 21

A graph showing get the relationship between price and quantity demanded.

Front 22

Supply Schedule

Back 22

A table showing get the relationship between price and quantity demanded.

Front 23

Ex. Supply Curve/Schedule

Back 23

Front 24

Ex. Demand Curve/ Schedule

Back 24

Front 25

Factors effecting supply

Back 25

Price of inputs (cost of production such as labor or shipping), price of related goods (other substitutes the producer can produce), number of suppliers, technology, expected future prices,government policies, natural disasters

Front 26

Price of inputs

Back 26

If the price of inputs goes up, supply will decrease (graph shifts left), if price of inputs goes down, supply will increase (graph shifts right)

Hint 26

As it relates to the law of supply

Front 27

Price of related goods (substitutes)

Back 27

If the price of related goods goes up, the supply will decrease (shift right on graph),if the price of related goods goes down,the supply will increase (shift left on graph)

Hint 27

As it relates to supply

Front 28

Number of suppliers

Back 28

If the number of suppliers goes up, the supply will go up (shift right), if the number of suppliers goes down, the supply will go down (shift left)

Hint 28

As it pertains to supply

Front 29

Technology in supply process

Back 29

If new tech becomes available, supply will go up

Hint 29

As it pertains to supply

Front 30

Expected future prices

Back 30

If supplier expects that prices for good will increase in the future, immediate supply will go down. If the supplier expects that future prices will decrease in the future, immediate supply will increase.

Hint 30

As it pertains to supply

Front 31

Equilibrium Price

Back 31

The sweet spot where demand curve intersects with th supply curve

Hint 31