Unit 1.1
This term means that resources are limited and wanted.
Scarce / Scarcity
This model represents the combination potential of two different goods given a certain amount of resources.
Production Possibilities Curve
This term is exemplified by the following: Tom can produce 8 coconuts; Jerry can produce 5 coconuts. Therefore, Tom produces more coconuts than Jerry.
Absolute Advantage
This is the direction of the demand curve.
Downward Sloping
The intersection of the supply and demand curves represents this on the Supply-Demand model.
Market Equlibrium
This term describes someone who manufactures and provides something to consumers.
Producer
These are the default terms that act as axis labels on the Production Possibilities Curve.
Capital Goods and Consumer Goods.
This term describes when an entity can produce a good at a lower opportunity cost than another entity.
Comparative advantage
This term represents the specific amount of a good consumers are willing to buy at a single pricepoint.
Quantity Demanded
The expense for labor (wages), a major THIS for producers, can reduce supply if they increase.
Input Cost
This term is the study of scarcity and choice.
Economics
This is the point on a PPC curve that represents the most potential economic growth.
Point closest to most production of capital goods (this represents investment which leads to increase in capital stock formation).
This type of comparative advantage problem occurs when comparing how much entities are using up resources to produce a good.
Input Problem
When price level of a good increases, the change in quantity demanded is represented by this on a Supply and Demand graph.
Movement up the demand curve (indicating less Qd)
When quantity supplied exceeds quantity demanded, we have this in the market.
Shortage
This term related to marginal analysis and means when you choose something, you give up the next best thing.
Opportunity Cost / Trade-off
This term describes when every interval of producing Good A reduces the amount of Good B on an expanding basis (this is shown by a bowed out curve).
Increasing Opportunity Cost
This terms relates to individuals doing different tasks that suit their area of expertise.
Specialization
One of the reasons the demand curve is downward sloping is because as price decreases, consumers experience an increase in purchasing power, a phenomenon more formally known as this.
Income Effect
The government can provide this type of assistance assistance to producers which can ultimately increase supply.
Subsidy
5 TERMS NEEDED: These are the economy's four main resources. These four resources can all be grouped into one umbrella term known as this.
Land, Labor, Capital, Entrepreneurship; Factors of Production
TRIPLE PLAY:
These are the terms that represent the following situations within the PPC.
1). On the Curve
2). Below the Curve
3). Above the Curve
Full Employment/Efficient (Feasible)
Below Full Employment/Inefficient (Feasible, but not desired)
Beyond Full Employment (Infeasible, need more resources to sustain)
DAILY DOUBLE!
Mutually beneficial trade occurs when the two producers exchange this amount of goods.
Between the two opportunity costs (of the two producers producing that good)
TRIPLE PLAY!
These are three of the demand shifters (there are 5 total).
1). Change in the Number of Buyers
2). Change in Income
3). Change in Price of Substitutes/Complements
4). Change in Price Expectations
5). Change in Styles/Preferences
The general consensus is that we expect the price of flamin' hot cheetos to increase in the near future. The equilibrium quantity and equilibrium price will do this in the flamin' hot cheeto market.
Equilibrium Quantity is indeterminate
Equilbrium Price will increase