Fundamentals
Supply and Demand
Determine This
Wow So Many Costs
Trade
100
This flows from households to businesses through the factor market.
What are factors of production?
100
This is the law describing the rationale behind the down sloping demand curve.
What is the Law of Demand?
100
The quantity demanded of this type of good increases as income decreases.
What is an inferior good?
100
Costs that require an outlay of money.
What are Explicit Costs?
100
A point within the PPF represents this.
What is inefficient use of resources?
200
This is the problem faced by society's unlimited wants.
What is scarcity?
200
These drive a "wedge" between the supply and demand curves.
What are Taxes?
200
This government action serves to decrease input costs and shifts supply right.
What are subsidies?
200
Profit comes from the difference between these two things
What are the Total Revenue and Total Costs?
200
A country has a comparative advantage in the production of a good if this is true.
What is having a lower opportunity cost?
300
Pablo can either study, mow the lawn for $10, or paint the fence for $5. The opportunity cost of him studying is this.
What is $10?
300
If iPhones suddenly become cheaper relative to Samsung phones, then people buy more iPhones. This effect represents the given situation.
What is the substitution effect?
300
Determinants of demand include related goods prices, income, expectations, number of buyers, and this.
What are the expectations of the consumer ?
300
Economic profit and Accounting profit are different because Economic profit includes these types of costs.
What are implicit costs?
300
Because price controls and taxes distort incentives less of this will occur in a market.
What is trade?
400
Factors of production include, land, labor, capital, and this.
What is entreprenurial ability?
400
This situation is caused by a price ceiling, where quantity demanded exceeds quantity supplied.
What is a shortage? (Excess demand)
400
Determinants of supply include government actions, technology, producer expectations, number of sellers and (most importantly) these.
What are input prices? / What are costs of production?
400
Change in Output / Change in Labor
What is the Marginal Product of Labor?
400
Outward shifts of the PPF can be caused by these.
What are improvements in technology and increases productivity?
500
Given society's unlimited wants and limited resources, society must make these.
What are trade offs?
500
This is the difference between the price a consumer is willing to pay and the price actually paid.
What is consumer surplus?
500
The Law of Supply states that given this, quantity supplied increases as price increases.
What is all other things equal assumption? (Ceteris Paribus)
500
This is said to exist when a firms Average Total Costs continue falling as output is increased.
What is Economies of Scale?
500
If Japan can produce 5 computers in 1 hour and the US can produce 10 computers in 2 hours, the absolute advantage belongs to this party.
What is both countries?
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