Econ 111 Exam 2

Front 1

there will always an indirect or negative relationship between the price and quantity demanded

Back 1

Law of Demand

Front 2

reflects a movement along the demand curve as the price changes

Back 2

Quantity Demanded

Front 3

a movement of the entire demand curve; there is no price associated

Back 3

Change or Shift in Demand

Front 4

rightward shift in demand

Back 4

Increase in Demand

Front 5

leftward shift in demand

Back 5

Decrease in Demand

Front 6

these determinants show us that when you make choices about what to buy, you consider other factors in addition to the price

Back 6

Non-Price Determinants

Front 7

1. Consumers Tastes and Preferences

2. Income

3. Price of Related Goods

4. Number of Buyers in the Market

5. Expectations

Back 7

Non-Price Determinants of Demand

Front 8

If your income goes up, you will by more superior goods, and less inferior goods

If your income goes down, you will buy more inferior goods, and less superior goods

Back 8

Income

Front 9

Contains both a complementary good and substitute good

Back 9

Price of Related Goods

Front 10

If the price for one good go up, the demand for the other good decreases and vice versa

Back 10

Complementary Good

Front 11

The price of one good goes up, the demand for the other good increases and vice versa

Back 11

Substitute Good

Front 12

There will always be a direct or positive relationship between price and quantity supplied

Back 12

Law of Supply

Front 13

reflects a movement along the supply curve as the price changes

Back 13

Quantity Supplied

Front 14

a movement of the entire supply curve

Back 14

Change or Shift in Supply

Front 15

rightward shift in supply

Back 15

Increase in Supply

Front 16

leftward shift in supply

Back 16

Decrease in Supply

Front 17

1. Cost of Inputs

2. Technology

3. Number of producers in the market

4. Price of related goods

5. Gov't policies

6. Expectations

Back 17

Non-Price Determinants of Supply

Front 18

Cost of inputs goes up, there is a decrease in supply

Cost of inputs goes down, there is an increase in supply

Back 18

Cost of Inputs

Front 19

this will always increase supply-ceteris paribus

Back 19

Technology

Front 20

fewer producers-supply decrease

more producers-supply increases

Back 20

Number of Producers in the Market

Front 21

Taxes and Subsides

Back 21

Gov't Policies

Front 22

price where quantity supplied equals quantity demanded

Back 22

Market Equilibrium

Front 23

occurs when price is above equilibrium; QS exceeds QD

Back 23

Surplus

Front 24

occurs when price is below equilibrium; QD exceeds QS

Back 24

Shortage

Front 25

Increase in Demand

Decrease in Demand

Increase in Supply

Decrease in Supply

Back 25

Four possible shifts that will disrupt equilibrium

Front 26

when the price goes up

Back 26

Either an increase in demand or a decrease in supply

Front 27

when the price goes down

Back 27

Either a decrease in demand or an increase in supply

Front 28

a legal price set below equilibrium

Back 28

Price Ceiling

Front 29

a legal price set above equilibrium

Back 29

Price Support

Front 30

a plan for expenditures (outlays) and tax collections (tax revenues and receipts)

Back 30

Budget

Front 31

Gov. Expenditures=Tax Revenues

Back 31

Balanced Budget

Front 32

Tax Revenues exceeds Gov. Expenditures

Back 32

Budget Surplus

Front 33

Gov. Expenditures exceeds Tax Revenues

Back 33

Budget Deficit

Front 34

Sum of all past budget deficits

Back 34

National Debt

Front 35

This is calculated yearly

Back 35

Budget Deficit