This is known as the study of choices people make to attain their goals given scare resources
What is Economics?
This is a curve showing the maximum attainable combinations of two goods that can be produced with available resources and current technology.
What is a Production Possibilities Frontiers?
(PPF)
This line represents the relationship between the price
of a product and the quantity of the product demanded.
What is a demand curve?
If you are willing to buy a donut for 5 dollars, but Dunkin' is selling them for 1.50, you are experiencing this type of surplus.
What is consumer surplus?
These are products we ship out to other countries for sale.
What are exports?
The three keys of economics are:
1 People are rational
2 People respond to economic incentives
3 ?
What is Optimal decisions are made at the margins
If you can make 1 croissant and 1 coffee an hour, while your partner makes 2 croissants and two coffees an hour, your partner is exhibiting this type of advantage.
What is absolute advantage?
This term is defined as the decisions of (generally) firms about how much of a product to provide at various prices.
What is supply/market supply?
If it costs you 1.30 to make one cup of boba, but customers are paying 6 dollars for it, you are experiencing this type of surplus.
What is producer surplus?
If the US has a lower opportunity cost to produce pies than Mexico, it has this type of advantage.
What is comparative advantage?
There are three types of economies, mixed, market, and this one, like the one found in North Korea
What is centrally planned?
Labor, capital, natural resources, and entrepreneurship are the pillars of this economic concept.
What are the Factors of Production?
The intersection of a supply and a demand line is referred to as this.
What is market equilibrium?
This concept can be thought of as the amount of inefficiency in a market. In competitive equilibrium,
this is zero.
What is deadweight loss?
This is the ratio at which a country can trade
its exports for imports from other countries.
What is terms of trade?
This subject is known as the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth.
What is Macroeconomics?
This mechanism allows individual responses to collectively end up satisfying the wants of consumers.
What is the "invisible hand?"
If Expo is supplying 10 million markers, but consumers are only buying 9 million, we have this in the market.
What is a surplus?
These are minimum/maximum prices a seller may charge/receive.
What is a price ceiling/floor?
These government imposed policies are usually placed on imported goods.
What are tariffs?
1. Decide on the assumptions to use.
2. Formulate a testable hypothesis.
3. Use economic data to test the hypothesis.
4. Revise the model if it fails to explain the economic data well.
5. Retain the revised model to help answer similar economic questions in the future.
These are the steps to build this?
What is an economic model?
These rights are the rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it.
What are property rights?
If consumer want to buy 3 million pairs of shoes, but Converse is only providing 500 thousand, we have this in the market.
What is a shortage?
This government imposed policy can shift supply and demand curves left.
What are taxes?
What is a tariff?
This organization is an international organization oversees international trade agreements.
What is the world trade organization?