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23 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Quantity demand |
The amount of good a person is willing and able to buy at a certain price in a period. |
Focus on what buyer can do + period |
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Nominal price |
The price being measured in terms of money. |
Normal way of measurement |
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Relative price |
To express the price of a good in terms of another good. |
Through other things measurement e.g. How many McDonald's can I buy frm this? |
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Demand |
Shows the quantities demanded when different prices are charged. |
Different from quantity demanded |
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Law of Demand |
When price of a good increases, it's quantity demand decreases, vice versa, ceteris paribus. |
Opposite of good $ and demand. |
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Law of Demand |
When price of a good increases, it's quantity demand decreases, vice versa, ceteris paribus. |
Opposite of good $ and demand |
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Market demand |
The total quantity demanded by all the people in the market at each particular price. |
total quantity + ppl |
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Quantity supplied |
The amount of good a producer is willing and able to sell at a particular period, within a period. |
Focus on what producer can do +period of time |
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Production |
The process of changing resources (inputs) to goods and services (outputs). |
input --> output |
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Meaning of goods |
Scarce (economic) good, free good, consumer good, producer (capital) good. |
4 types of goods. |
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Consumer good |
Directly consumed to satisfy wants. |
Wants? or Services? |
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What to produce |
Determined by demand force. When demand increases, price of a certain good will also increase. |
Determined by ****** force |
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How to produce |
Determined by the lowest cost of production. |
Low $ production |
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For whom to produce |
Determined by price competition. Can pay then can obtain the scarce good. |
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Market economy |
Price determines most allocation of resources. |
$ or government? |
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Planned (command) economy |
Government determines most allocation of resources. |
$ or government? |
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Opportunity cost |
Highest-valued option forgone |
2nd highest priority |
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Scarcity |
Unlimited wants, resources limited. Thus not enough to satisfy all wants of people. |
Not enough, but what happened thus scarcity? |
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Mixed economy |
Features both market and planned economy. |
Both economics combined |
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Traditional economy |
Allocation of resources is determined by traditions. |
Practiced in villages or religious or superstitious people. |
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What are the 3 aspects of private property rights? |
1. Exclusive right to use 2. Transfer property 3. Receive income from |
What can do if you are full owner of property? |
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Why does quantity demanded changes? |
It changes because price changes. Meanwhile, other factors stay constant. |
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Substitute |
Goods which can replace another good |
Just use the literal English definition |
