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29 Cards in this Set
- Front
- Back
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Economic Problem
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Scarce resouces satisfying unlimited wants
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The Four Resources
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Land, Labor, Capitol, Entreprenurial Ability
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Resources combine to...
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produce goods and services
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Scarcity
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quantity demanded is greater than the amoung available at zero price
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Microeconomics deals with what?
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consumers, households, individuals, firms, government, rest of the world
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Macro deals with what?
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The economy as a whole.
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Households do what?
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Maximize utility
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Firms do what?
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Maximize profits
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Governments do what?
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Regulate, provide public goods
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Market
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anywhere exchange takes place, when buyers and sellers get together
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Opportunity Cost
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Value of the best alternative forgone of any activity or good.
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Production Possibility Frontier (PPF)
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Shows all combination fo 2 goods wehre all resources are used efficeiently.
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What will shift the PPF?
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Economic Growth
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Point below PPF
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Inefficieint, not using all recourses possible
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Point on PPF
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Efficient, all resources being used
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Point above PPF
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Unattainable, dont have enough resources
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Production always goes up when
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with specialization
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Quantity Demanded = Quantity Supplied
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Equilibrium
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Points below Equilibrium
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Shortage
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Points above Equilibrium
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Surplus
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Demand and Supply are shown by
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Curves
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Qty. Demanded and Qty. Supplied are shown by
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Points
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Income will cause a shift in what?
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Demand
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Tastes will cause a shift in what?
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Demand
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Number of buyers will cause a shift in what?
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Demand
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Resources will cause a shift in what?
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Supply
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Technology will cause a shift in what?
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Supply
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Price of resources will cause a shift in what?
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Supply
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Number of sellers will cause a shift in what?
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Supply
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