Vocab
The most desirable alternative given up as the result of a decision
What is Opportunity Cost
Which shifting factor applies?: The government decides to subsidize broccoli to promote healthy living. (market: broccoli)
What is government policy
Which shifting factor applies?: Kylie Jenner posts on Instagram about her love for squid. (market: squid)
Consumer taste
This market structure has the most amount of competition.
What is Pure competition
Part of GDP: money businesses have spent on capital goods (buildings, machines, etc.) AND any unsold goods that were produced that year
Business investments
The development of skills in a specific kind of work; division of labor
What is specialization
Which shifting factor applies?: In 1845, there was a massive potato famine in Ireland. (market: potatoes)
Natural Disaster
If a person's income increases, what happens to their demand for normal goods?
Increase in demand
This market structure has the least amount of competition.
What is Monopoly
Part of GDP: the value of all goods and services exported minus all goods and services imported
Net exports
weighing the pros and cons of a decision
What is Cost-benefit analysis
Spring is just around the corner. The supply curve for coats will shift to the left due to which factor?
producer expectations
A new apartment building opens and many new people move in. Demand increases due to which shifting factor?
Number of buyers
Since there is only one seller, there is no product differentiation.
What is Monopoly
GDP adjusted for inflation (conveys purchasing power in constant dollars)
real GDP
A ________ occurs when the quantity supplied is lower than the quantity demanded.
Shortage
A company invests in more efficient manufacturing equipment. The supply curve will eventually shift to the right due to which factor?
advances in technology
Winter is on its way, so people buy more sidewalk salt. Demand increases due to which shifting factor?
Consumer expectations
If one business raises or lowers its prices, the others will follow. This is price leadership.
raw data GDP (using current prices)
Nominal GDP
a type of security that signifies ownership in a corporation and represents a claim to a part of the company's profits or losses
Wheat suddenly increases in price. The supply curve for bread will shift left due to which factor?
Cost of inputs
Cookie prices decrease greatly. Demand for milk increases due to which shifting factor?
Price of related goods
There is some price control in this market, but competition is allowed through pricing and product differentiation.
What is monopolistic competition
Real GDP divided by a country’s population
GDP per capita