Core of Macroeconomics
The study of how individuals, households and firms make decisions and how those decisions interact
What is Macroeconomics?
A way economic growth can happen
What is the increase in sources and/or progress in technology?
Another name for horizontal and vertical axes
What are X-axis and Y-axis?
The downward sloping curve in the supply and demand curve
What is the demand curve?
Another term for excess supply
What is surplus?
Follows a recession with economic upturns
What is expansion?
The opportunity cost of producing one coconut if the quantity of coconuts being produced is 25 when 20 fish are being caught.
What is 0.8 fish?
A measure that can take on more than one value
What is a variable?
When the market has many buyers and sellers of the same good or service
What is a competitive market?
When there is high demand low supply
What is a shortage?
Risk taking, innovation, and the organization of resources for production
What is entrepreneurship?
The terms of trade if Kobe's opportunity cost is 1/2 sharpie per fish and Lebron's opportunity cost is 7/8 sharpie per fish.
What is anything between 1/2 < x < 7/8?
The determining variable and the variable it is determining
What are independent and dependent variables?
Three of the five principles that shift the demand curve
What are changes in taste, in prices of related goods, in income, in the number of consumers, and in expectations? (Only need 3)
When a government intervenes to regulate prices
What is price control?
Using these can simplify and allow for answers to help explain more real-life and difficult situations
What is an economic model?
The person with the comparative advantage when Kobe's opportunity cost is 1/2 sharpie per fish and Lebron's opportunity cost is 7/8 sharpie per fish.
Who is Kobe?
When an increase in one variable is associated to a decrease in another variable
What is a negative relationship?
The cocoa beans, sugar, eggs, and milk in chocolate ice cream.
What are inputs?
When the equilibrium price rises but the change in the equilibrium quantity is ambiguous
What happens when demand increases and the supply decreases simultaneously?
The latin term meaning “other things equal”
What is ceteris paribus?
These aspects of a real economy are understood after using the production possibilities curve
What is efficiency, opportunity cost, and economic growth?
When successive dates on the horizontal axis and the values of a variable that occurred on those dates on the vertical axis
What is a time-series graph?
The five principles that shift the supply goods
What are changes in input prices, in the prices of related goods and services, in producer expectations, in the number of producers, and in technology? (All 5 needed).
When the equilibrium quantity falls but the changes in the equilibrium price is ambiguous
What happens when demand and supply both decrease?