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32 Cards in this Set
- Front
- Back
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Micro |
single factors effects individuals |
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macro |
whole economy |
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centrally planned economy, market econ, and mixed econ have what in common |
government intervention |
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trade-off |
what you give up |
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scarcity |
what you want exceeds what you have |
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productive efficiency |
produce at lowest cost |
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allocative efficiencey |
market determines what and how to produce |
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opportunity cost |
highest value alternative giving up |
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positive analysis |
what is |
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normative analysis |
what ought to be |
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economic models |
simplified versions of reality |
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what is PPF |
production possibility frontier |
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downward sloping |
trade off |
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bound-outward |
increasing marginal opportunity cost |
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factors of production |
labor, natural resources, capital, entrepeneural ability |
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examples of labor |
employees |
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example of natural resources |
gas, land |
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ex of capital |
attainable money |
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ex of entrepeneural ability |
how to manage |
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absolute advantage |
better at doing things |
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comparative advantage |
produce at lower opportunity cost |
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ceteris paribus |
all else equal |
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law of demand |
as the price of good increases, quantity depmand decreases |
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factors that shift the deman |
income, price of related goods, taste, population, expected price |
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income |
normal vs inferior |
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price of related goods |
substitutes ; complements |
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law of suppy |
price of good increases quantity supplied increases |
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market equilibrium |
when quantity demand = quantity supply |
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Elasticity of demand |
Ed |
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elasticity of supply |
Es |
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elasticity income |
Ei |
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determinants for elastic |
close substitutes, definition of market, necessity/luxury, time, share of budget |
