Microeconomics

Front 1

how people try to satisfy their wants and needs/decision making.

Back 1

economics

Front 2

consumers and privately owned businesses make the majority of the decisions.

Back 2

free market

Front 3

type of economy in which a central authority makes the decisions
+ ability to change drastically
- no economic freedom, no incentive to work hard

Back 3

command economy

Front 4

type of economy based on the traditions of ancestors
+ always know what to do
- nothing new, always the same

Back 4

traditional economy

Front 5

type of economy with little or no gov't involvement

Back 5

mixed economy

Front 6

type of economy in which the individual interest is the driving force
+ adjust to changes over time, de-centralized decision-making
- boss gets credit

Back 6

markey economy

Front 7

someone who risks everything to open a business in order to gain profit.

Back 7

entreprenuer

Front 8

diagram representing maximum combinations of goods/services an economy can produce when all productive resources are fully employed.

Back 8

production possibilities frontier

Front 9

essentials have little monetary value and nonessentials have high monetary value.

Back 9

paradox of value

Front 10

factors of production

Back 10

land, labor, capital, entreprenuership

Front 11

essential economic questions

Back 11

what is the product?
how is it going to be produced?
who is it for?

Front 12

the difference between scarcity and shortage

Back 12

scarcity is long-term and shortage is short-term

Front 13

alternative choice

Back 13

trade-off

Front 14

what comes out of a decision

Back 14

opportunity cost

Front 15

costs that change

Back 15

variable costs

Front 16

costs that remain the same and are to be paid no matter what

Back 16

fixed costs

Front 17

gov't owns some factors of production and has a role in determining how goods are produced
+ provides for the needs of people, free public education

Back 17

socialism

Front 18

everything is owned and run by the gov't
+ no worries, all needs will be met
- lose freedom, lose incentive to work hard

Back 18

communism

Front 19

Stalin's centralized economic plan to help the development of industry and agriculture of the Soviet Union

Back 19

five year plan

Front 20

price goes up, demand goes down

Back 20

law of demand

Front 21

supply goes up, price goes up

Back 21

law of supply

Front 22

change in quantity demanded due to a change in the relative price of the product

if price of a product's substitute goes up, the demand for the product will go up

Back 22

substitution effect

Front 23

change in quantity demanded caused by a change in a consumer's real income when the price of a product changes.

Back 23

income effect

Front 24

goods that complement each other
ex. pb & j

an increase in a product's price makes the demand for the product's complement go down.

Back 24

complimentary goods

Front 25

shows quantity demanded at all possible prices

Back 25

demand schedule

Front 26

graph showing quantity demanded at all possible prices

Back 26

demand curve

Front 27

shows various amounts supplied at all prices

Back 27

supply curve

Front 28

factors that cause change in quantity demaded

Back 28

prices, income effect, substition effect

Front 29

factors that cause change in supply demanded

Back 29

prices, income

Front 30

relatively small change in price, large change in demand

Back 30

elastic

Front 31

relatively small change in price causes relatively small change in demand

Back 31

inelastic

Front 32

proportional change in price and demand

Back 32

unitary elastic

Front 33

relationship between the factors of production and the output of goods and services

Back 33

theory of production

Front 34

stages of production

Back 34

increasing returns, diminishing returns, negative returns

Front 35

total and marginal product both increasing

Back 35

increasing returns

Front 36

total product increas, marginal product decreases

Back 36

diminshing returns

Front 37

total and marginal product decrease

Back 37

negative returns

Front 38

decreasing satisfaction or usefulness as additional units are added

Back 38

diminishing marginal utility

Front 39

extra cost of producing one additional unit of production

Back 39

marginal cost

Front 40

varible plus fixed cost; all costs associated with production

Back 40

total cost

Front 41

quantity supplied is greater than quantity demanded

Back 41

surplus

Front 42

quantity supplied is less than quantity demanded

Back 42

shortage

Front 43

stabilization, supply and demand intersect

Back 43

equilibrium

Front 44

maximum legal price of a product

Back 44

price ceiling

Front 45

minimum legal price of a product

Back 45

proce floor

Front 46

forced common ownership of factors of production

Back 46

collectivization

Front 47

restructuring of soviet union

Back 47

perestrioka

Front 48

people own factors of productions and them to generate profits

Back 48

capitalism

Front 49

dollar value of all final goods/services/structures produced with in a country's national borders during a one year period.

Back 49

gross domestic product