Foundations
Supply and Demand
Elasticities
Government Intervention
Market Failure
100
the fundamental problem of economics
What is scarcity?
100
the economic generalization that states that all else being equal, there is a negative causal relationship between price and quantity demanded.
What is the Law of Demand?
100

When the % change in QD is greater than the percentage change in the price which caused it.

What is PED elastic?

100

A maximum legal price set by a government for a good or service.

What is a price ceiling?

100
This is when a market produces the mix of goods and services that maximizes welfare of society.

What is allocative efficiency?

200
a manmade factor of production that is used to produce goods and services.
What is capital?
200
factors such as changes in consumer tastes or the price of substitutes that will change market demand for a good or service
What are non-price determinants of demand?
200

These are 2 of the determinants of PED

What are availability of substitutes, proportion of income spent of the good, time and whether or not the good is a necessity?

200
a tax on per unit on a specific good - a type of indirect tax.
What is excise tax?
200

the unintended byproduct of the consumption of a good that benefits society.

What is a positive consumption externality?

300
What to produce, How to produce and For Whom to produce.
What are the Allocation Questions?
300
When quantity demanded is equal to quantity supplied at a single price.
What is market equilibrium?
300

Goods arising directly from natural resources or Land without having undergone a manufacturing process and are usually PED inelastic.

What is a primary good?

300

A type of price floor that attempts to increase access to goods and service for low income households.

What is a minimum wage?

300

the absolute total costs to society for the production of a good or service

What are Marginal Social Costs?

400
the phrase used to indicate that all variables (other than the one being examined are assumed not to change.
What is ceteris paribus?
400

This law, explains the increase/decrease in quantity as the result of a increase or decrease of demand.

What is the Law of Supply?

400

This is a good for which an increase in income will lead to a decrease in QD.

What is an inferior good?

400

This is the likely impact of a government internvention on a market that was previously allocatively efficient.

What is a welfare loss?  reduction of allocative efficiency

400

a type of government tax that encourages firms to use clean energy to produce goods and services.

What is a carbon tax?

500
Using economic resources in a way that are not depleted and are available to be used in future production.
What is sustainability?
500

These are three non-price determinants of supply.

What are costs of factors of production, number of firms in the market, firm expectations, price of related goods (joint supply or competitive supply, improvements of technology/capital, indirect taxes or subsidies.

500

These are the determinants of Price Elasticity of Supply.  name 3

What is the ability to store, interchangeability of resources, excess capacity and time?

500

the term used to indicate whether consumers or firms pay the majority of an excise tax on a good.

What is "tax incidence"?

500

This is one other type of market failure other than those associated with externalities.  

What is monopoly, or public goods or common access resources, asymetrical inforamtion or income inequality?

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