Mic - Quiz 1

Front 1

opportunity cost

Back 1

value of best opportunity lost

Front 2

Rational:

Back 2

weigh pros and cons

Front 3

Utility:

Back 3

what people get when they make a decision

Front 4

Normal Good

Back 4

income goes up u buy more

Front 5

Inferior good

Back 5

income goes down you buy less

Front 6

Substitutes

Back 6

Pepsi vs Coke (1 price goes up the others demand rises)

Front 7

Complements

Back 7

Cars & Tires (1 price goes up the others demand decreases)

Front 8

Positive

Back 8

True or false statement
Example- I’m 22 years old

Front 9

Normative

Back 9

Based on opinion

Front 10

Law of Supply

Back 10

High price more supply and vice versa

Front 11

Law of Demand

Back 11

At High price less is demanded (vice versa)

Front 12

Supply Curve

Back 12

at each price how much people are able to supply

Front 13

Demand Curve

Back 13

at each price how much people are able to buy

Front 14

Equilibrium-
Graphically:

Back 14

an intersection of supply and demand group (looks like an X)

Front 15

Equilibrium-
Conceptually:

Back 15

Where quantity supplied is = to quantity demanded

Front 16

5 Causes of Increase/decrease in Demand

Back 16

Taste, Income, Price of Related Goods, # of Buyers, Expectations

Front 17

4 Causes of Increase/decrease in Supply

Back 17

Input Prices, # of Sellers, Technology, Expectations

Front 18

Ceteris Paribus

Back 18

All things constant

Front 19

(What effect does each have on Equilibrium P and Q)

Increase in Supply

Back 19

Price down Quantity Up

Front 20

(What effect does each have on Equilibrium P and Q)

Increase in Demand

Back 20

Price Up Quantity Up

Front 21

(What effect does each have on Equilibrium P and Q)

Decrease in Supply

Back 21

Price up Quantity down

Front 22

(What effect does each have on Equilibrium P and Q)

Decrease in Demand

Back 22

Price down Quantity down

Front 23

Assuming that some land is better for farming and other land is better for hunting, which land would a society use first as it switches from all hunting to doing some farming?

The opportunity cost of farm products would be
(Low or High)

Back 23

LOW

Front 24

Bob can make 10 thingies or 5gizmo’s per hour
Tina can make 8 thingies or 12 gizmo’s per hour

Bob- 1 thingy costs
Tina- 1 thingy costs
Who should specialize in thingying

Back 24

Bob- 1 thingy costs__1/2 G__ = 5 /10= 1/2
Tina- 1 thingy costs__1 ½ G_ = 12 / 8 = 1 1/2

TINA

Front 25

Which line ( S or D) moving which direction would cause each of the following?

Increase in P and increase in Q?

Back 25

D > RIGHT

Front 26

Which line ( S or D) moving which direction would cause each of the following?

Increase in P and decrease in Q?

Back 26

S > LEFT

Front 27

Which line ( S or D) moving which direction would cause each of the following?

Decrease in P and decrease in Q?

Back 27

D > LEFT

Front 28

Which line ( S or D) moving which direction would cause each of the following?

Decrease in P and increase in Q?

Back 28

S > RIGHT