Econ 201 Final - Concordia

Front 1

A vertical demand curve is

Back 1

perfectly inelastic

Front 2

A horizontal demand curve is

Back 2

perfectly elastic

Front 3

If you increase the price of an inelastic good, total revenue...

Back 3

goes up

Front 4

if you increase the price of an elastic good, total revenue...

Back 4

goes down

Front 5

If you increase or decrease the price of a unit elastic good, total revenue...

Back 5

does not change

Front 6

The tax burden is carried by the more ____________ curve

Back 6

inelastic

Front 7

The extra happiness you gain from one additional unit

Back 7

marginal utility

Front 8

In the reference year, the value of the CPI =

Back 8

100

Front 9

If a good's price goes up, it's marginal utility goes _________

Back 9

down

Front 10

If demand decreases, the demand curve shifts to the __________

Back 10

left

Front 11

If costs rise, supply shifts to the __________

Back 11

left

Front 12

If costs fall, supply shifts to the _________

Back 12

right

Front 13

if demand is linear, the _______ half of the curve is elastic

Back 13

top

Front 14

Positive statements are

Back 14

Assertive, based on fact

Front 15

Normative statements are

Back 15

opinion based & can't be proven

Front 16

cross-section data is

Back 16

values for different variables at ONE point in time

Front 17

tax wedge

Back 17

difference between consumer & producer prices

Front 18

revenue burden

Back 18

$ raised by a tax

Front 19

deadweight loss/excess burden

Back 19

losses incurred by producers & consumers due to a tax

Front 20

externality

Back 20

cost/benefit affecting those not in the transaction

Front 21

price elasticity of demand formula:

Back 21

% change q

------------------

% change p

Front 22

Inferior goods have _________ income elasticity

Back 22

negative

Front 23

the tax burden falls on the __________ curve

Back 23

steeper

Front 24

the way in which a change in price alters a consumer's decisions by altering the consumer's purchasing power

Back 24

income effect

Front 25

Economics studies trade-offs between e________ and e___________

Back 25

efficiency, equity

Front 26

When you have equity, you also have ____________

Back 26

inefficiency

Front 27

When you have efficiency, you also have ____________

Back 27

inequity

Front 28

Forced equity is a _______ idea because.....

Back 28

BAD! (e.g. communism). People get lazy.

Front 29

People work harder when there (is/is no) equity

Back 29

is no

Front 30

based on what you know at the time, you will always choose what you think is best for you

Back 30

Rationality

Front 31

a punishment or reward that motivates you

Back 31

incentive

Front 32

giving up scarce resources in order to get something equally or more valuable

Back 32

Trade

Front 33

In a trade, who ends up better off?

Back 33

Both parties

Front 34

Govt prevents misallocation of resources through ___________ rights

Back 34

property

Front 35

Purely govt economy

Back 35

Command economy

Front 36

Market + Govt involvement economy

Back 36

Mixed economy

Front 37

Models are built on ________________

Back 37

Assumptions

Front 38

Slope of the PPF tells you the ___________________

Back 38

opportunity cost

Front 39

When do two people have the same opportunity costs?

Back 39

When the PPF slopes are identical

Front 40

Input used to produce output

Back 40

Resource

Front 41

Is money a resource?

Back 41

No!

Front 42

Factors which affect price (3)

Back 42

Technology, competition, price of inputs

Front 43

​Physical restrictions on output of a good

Back 43

Quotas

Front 44

Ad Valorem tax

Back 44

same $$ regardless of item price (e.g. 20$ tax on any flight)

Front 45

Changes to the way we spend our money due to“artificial” factors like taxes

Back 45

distortion

Front 46

Issues that affect everyone, eg pollution

Back 46

Common properties

Front 47

Utility analysis

Back 47

Assumes people can rate how much they enjoy things numerically

Front 48

Indifference analysis

Back 48

Assumes people can only compare things (I like broccoli more than lettuce)

Front 49

4 features of indefference curves

Back 49

They don't touch, they don't bow out, negative slope, higher = better

Front 50

calculating CPI:

Back 50

current price/base yr price * 100

Front 51

Elasticity formula:

Back 51

((Q2-Q1)/(Q2+Q1)) / ((P2-P1)/(P2+P1))

Front 52

ceteris paribus

Back 52

all other things remaining equal

Front 53

quantity supplied

Back 53

single point on the supply curve

Front 54

consumer surplus

Back 54

difference between what producers charge & what ppl are willing to pay

Front 55

T/F marginal utility eventually decreases to zero

Back 55

True - do you really want 800 ice cream cones?

Front 56

Industry

Back 56

all the firms that produce the same product

Front 57

# of firms is ________ fixed in short run, _________ in long run

Back 57

fixed, variable

Front 58

When is profit maximized?

Back 58

When marginal cost = marginal revenue

Front 59

characteristivcs of monopoly marketplace (3)

Back 59

1 firm, barriers to entry, no substitutes

Front 60

Perfect competition: in the long run, profit = ?

Back 60

zero!

Front 61

Marginal revenue line in perfect competition

Back 61

same y-int, 2x slope of demand

Front 62

Cartel

Back 62

group who purposely keep production down to boost profit

Front 63

if technology allows more output to be produced with the same inputs, the supply curve...

Back 63

shifts to the right (more for sale at every price)

Front 64

Explain risk aversion using marginal utility

Back 64

the marginal utility of an extra dollar decreases as more income is received.

Front 65

When marginal product of labour equals average product of labour at a given (positive) labour, (MPL = APL) then the average product of labour:

Back 65

is at a maximum

Front 66

When does MC = ATC?

Back 66

when ATC is at its minimum

Front 67

In perfect competition, P = _______

Back 67

MC

Front 68

MRS

Back 68

marginal rate of substitution (how willing am I to give up chocolates to get cookies?)

Front 69

Profit = (Price - ??) * # units

Back 69

average total cost