Basic Economic Concepts
Supply and Demand
Market Structures
Graphs
Miscellaneous
100
These are rewards or punishments that motivate particular choices.
What are incentives?
100
The ____ says that a higher price for a good or service, all other things being equal, leads people to demand a smaller quantity of that good or service.
What is the law of demand?
100
There are solely two firms in this market.
What is an Oligopoly/Duopoly?
100
The point of intersection of the supply and demand curve
What is equilibrium?
100
Jesus Rodriguez presented the health and moral reasons for becoming vegetarian or vegan. He also stated that, because surplus for food will increase if the majority of the population changed to those diets, it is, economically, the best choice. Because he is stating facts about economic analysis, this is ____.
What is(are) positive economics/statements?
200
Economic recessions and economic ____ are short-run in nature.
What are economic expansions?
200
Dante and Andrew know that the price of tickets for "Get Out" will increase in two weeks. They decide to buy the tickets today.
What is a change in consumer expectations?
200
In a ____, the demand curve is perfectly elastic and, in the long run, they earn zero economic profits.
What is a perfectly competitive market?
200
Average total cost is minimized by producing the level of output where the marginal cost ____
When does the curve intersect the minimum point on the average total cost curve?
200
Joseph Broseph Inc. had a patent that granted exclusive rights to production for fried weaves. The patent ended last month, and this firm's economic profits are decreasing. One reason for this is that other firms ____.
Why are other firms entering the market?
300
The opportunity cost to produce digital cameras is lower in China than in the United States, so China has this type of advantage in producing cameras.
What is a comparative advantage?
300
The demand for a normal good decreases.
Why does income decrease?
300
The demand curve for a monopolist producing a normal good is downward-sloping because of ____
What is diminishing marginal utility?
300
When wage rate increases as quantity of labor decreases, this effect dominates.
What is the income effect?
300
Devin can deadlift 240 lbs 10 times in a span of 15 minutes. Robert can deadlift Devin 10 times in a span of 7.5 minutes. Assuming Devin deadlifts 2x his weight, ____ has(have) the absolute advantage in deadlifting.
Who are neither Robert nor Devin?
400
Suppose that you prefer studying Microeconomics to listening to Lil Uzi Vert, and that you prefer listening to Lil Uzi Vert to making buckets in basketball. If these are your only three choices, the opportunity cost of studying Microeconomics is ____.
What is listening to Lil Uzi Vert?
400
When FAA Telecom, a long-distance telephone service provider, offered reduced rates on weekends, its volume of weekend calling increased sharply. ____ happened in respects to the demand curve.
What is a movement along the demand curve?
400
____ shows how the quantity supplied by an industry depends on the market price, given a fixed number of firms.
What is a short-run industry supply curve?
400
This, along with changes in wealth, population, and preferences and social norms, shift the labor supply curve.
What are changes in opportunities?
400
An economically enlightened thug runs Coco, Molly, and Raindrops Inc. Because he knows how to run his streets, his firm operates as a monopoly. Knowing how to maximize profits, he sets price ____
What is on the demand curve above where MC=MR?
500
Kiefer Punter finished the basketball season with 1000+ points. Mr. Fagan talks to a scout and tells him that Mr. Punter has good potential in the NBA, therefore he should sign a premature contract with him, increasing Mr. Punter's net worth to $400 million. This type of statement is a ____.
What is a normative statement?
500
Changes in input prices, expectations, technology, number of producers, and ____ are factors that shift the demand curve.
What are changed in prices of related goods or services?
500
Sources of power for Monopolies include no substitute goods, technological superiority, control of natural resources, and ____.
What is economies of scale?
500
The quantity of labor demanded in an imperfectly competitive factor market is determined by the intersection of these two curves.
What are marginal revenue product and marginal factor cost curves?
500
Adrian sells The Flash and Captain America attire in a perfectly competitive market. In the short run, at the quantity that equates marginal revenue and marginal cost, the market price is above Adrian's average variable cost and below his average total cost. Adrian should ____
What is producing at a loss because he is covering his variable costs?
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