Foundations
Supply and Demand
Elasticities
Government Intervention
Standard Econ versus Behavior Econ
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 % change in QD is greater than the percentage change in the price which caused it.
What is Price Elasticity of Demand?
100
A maximum price for a good or service.
What is a price ceiling?
100

when the market produces the mix of goods and services that best meet the needs 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

This type of elasticity is dependent in part on the ability of a firm to store a good

What is price elasticity of supply?

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

The belief by standard economists that people will always make decisions that maximize their self interest

What is economic rationality?

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
the formula for YED
What is % change in qd / % change in income
300

a government payment to firms that results in reduced prices for the consumer of a good.

What is a subsidy?

300

When consumers using "context" to answer to a question / make a decision, especially on price based on comparative data. 

What is anchoring?

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
a good for which market demand will decrease when consumer income increases.
What is an inferior good
400

a good that is natural resources or agricultural good that has not undergone a manufacturing process.

What is Primary commodity.

400

the type of method by which goods can be distributed when a price ceiling results in a disequilibrium

What is non price rationing?

400

 the belief that our rationality is limited in predictable ways and as a result consumers and firms “satisfice” – choices rather than maximize utility

What is "bounded rationality"?

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

A economic principle that supports the Law of Supply.

What is the law of diminishing marginal returns?

500
When PED = 1
What is unit elastic?
500

A type of price floor that directly impacts income of low income workers

What is a minimum wage?

500

the belief that our preferences between choices are always consistent - that if a person prefers A to B and prefers B to C, they must also prefer A to C.

What is the transitivity assumption?

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