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29 Cards in this Set

  • Front
  • Back
Economic Problem
Scarce resouces satisfying unlimited wants
The Four Resources
Land, Labor, Capitol, Entreprenurial Ability
Resources combine to...
produce goods and services
Scarcity
quantity demanded is greater than the amoung available at zero price
Microeconomics deals with what?
consumers, households, individuals, firms, government, rest of the world
Macro deals with what?
The economy as a whole.
Households do what?
Maximize utility
Firms do what?
Maximize profits
Governments do what?
Regulate, provide public goods
Market
anywhere exchange takes place, when buyers and sellers get together
Opportunity Cost
Value of the best alternative forgone of any activity or good.
Production Possibility Frontier (PPF)
Shows all combination fo 2 goods wehre all resources are used efficeiently.
What will shift the PPF?
Economic Growth
Point below PPF
Inefficieint, not using all recourses possible
Point on PPF
Efficient, all resources being used
Point above PPF
Unattainable, dont have enough resources
Production always goes up when
with specialization
Quantity Demanded = Quantity Supplied
Equilibrium
Points below Equilibrium
Shortage
Points above Equilibrium
Surplus
Demand and Supply are shown by
Curves
Qty. Demanded and Qty. Supplied are shown by
Points
Income will cause a shift in what?
Demand
Tastes will cause a shift in what?
Demand
Number of buyers will cause a shift in what?
Demand
Resources will cause a shift in what?
Supply
Technology will cause a shift in what?
Supply
Price of resources will cause a shift in what?
Supply
Number of sellers will cause a shift in what?
Supply