VOCAB
MICRO VS MACRO
GRAPHS
ACRONYMS
BASIC SUPPLY & DEMAND
100
Scarcity
What is the demand for a good or service is greater than the availability of the good or service? SCARCITY NECESSITATES CHOICES
100
Why is microeconomics called “little picture economics”?
What is microeconomics focuses on how supply and demand interact in individual markets for goods and services?
100
What graph is this?
What is a perfect competition firm?
100
What does LRATC stand for?
What is Long Run Average Total Cost (curve)?
100
Does a change in input costs affect the supply or demand curve?
What is SUPPLY?
Prices of raw materials or other factors of production and wages of employees are included in the input costs of a firm.
200
Opportunity Cost
What is the opportunity lost?
The opportunity cost of anything is what you give up to have it.
200
Why is macroeconomics called “big picture economics”?
What is macroeconomics focuses typically on a nation and how all markets interact to generate aggregate (composite value) variables?
200
What graph is this?
What is a monopsony?
200
What does MC stand for and what is the definition?
What is Marginal Cost?
The additional cost incurred to produce one more unit of a good. To calculate the MC : change in total cost/ change in quantity
200
Does a change in market size affect the supply or demand curve?
What is DEMAND?
More population = More demand
Less population = Less demand
300
Normal Profit
What is a situation where the total revenues of a company are equal to the total costs in a perfectly competitive market?
A business will be in a state of normal profit when its economic profit is equal to zero.
300
Micro or macro?
Calculating the national GDP?
What is macro?
300
Is this monopoly making a profit or loss?
What is making a loss?
300
What does PPC stand for and what is its purpose?
What is Production Possibilities Curve?
Model used to show alternative ways that an economy can use its scarce resources. It gives a visual representation that every choice you make has an opportunity cost.
300
TRUE OR FALSE
Supply and Demand are numerical amounts
FALSE
Supply and demand are NOT numerical amounts. They are behaviors, specifically of consumers and producers.
400
Diminishing Marginal Returns
What is the more a person consumes a particular good or service, the less each additional unit is worth to them?
400
Micro or macro?
Raising Interest rates to fight inflation
What is macro?
400
What is this graph showing?
What is a positive externality?
400
What does DWL stand for and what does it show?
What is Deadweight Loss?
A measure of the $ consumers' surplus lost (but not transferred to producers) as a consequence of a price increase.
400
TRUE OR FALSE
An increase in price creates a supply curve shift to the right
FALSE
It changes the quantity supplied (a point on the curve) but does not shift the supply curve as a whole.
500
Negative Externality
What is a situation that results in a COST for a different person other than the original decision maker?
The costs “spillover” to other people or society.
500
Micro or macro?
How a government decides to spend a government surplus
What is micro?
500
What is the Total Revenue in this profit-maximizing natural monopoly?
What is bnhg?
500
Does TIMER measure changes in Demand or supply? Give two examples of what the letters stand for.
What is measure changes in Demand
T ( Tastes and preferences)
I (Income of Consumers)
M (Market Size)
E (Expectations of future price changes)
R (Related Goods)
500
TRUE OR FALSE
If supply and demand BOTH change then we can be certain about what happens to EITHER price or quantity
TRUE
We will be certain about one however the other will be indeterminate.