Demand
Supply
Supply and Demand
PPC
Random
100
if price increases quantity demanded will go down
law of demand
100
if price increases then the quantity supplied will increase
law of supply
100
The workers who produce batteries go on strike.
Shift in Supply or Demand? Increase or Decrease
Supply Decreases
100
What does PPC stand for?
Production Possibilities Curve
100
having a lower opportunity cost for a good gives a producer this 'advantage'
comparative advantage
200
Slope of demand curve
downward
200
The expected effect on the market if there were a decrease in the cost of an input.
Increase (right shift) in supply
200
Cereal producers increase the price of cereal.
Shift of curve or movement?
Move along curve
200
Concepts represented on a PPC
Scarcity
Choice
Efficiency
Inefficiency
200
What are the FOUR FACTORS of Production
Capital, Labor, Land, and Technology/Entrepreneurship
300
The numeric (table) representation of a Demand Function
demand schedule
300
This 'bottom line' is assumed to be the primary motivator to producers.
profit
300
Demand vs Quantity Demanded? What brings a consumer to the store.
Demand
300
Inside the PPC "curve"
Attainable but inefficient
300
The price of wheat and corn, key resources in the production of cereal decreases.
Supply or Demand, Increase or Decrease, and what is the SHIFTER?
Supply, Increase, Related Prices of Resources
400
The effect of a tax increase in a market
decrease (left shift) in demand
400
Product A is an input to Product B which is a substitute for Product C.
An increase in the price of Product A has this effect on Product B.
decrease in supply
*shift left*
400
Should know, but not yet tested on...
The change in equilibrium price resulting from an increase in supply and a decrease in demand
decrease
400
On the "curve"
Efficient
400
Soccer balls and basketballs are substitutes. An increase in basketball prices would have this effect on the soccer ball market.
increase in demand
500
Difference between substitute good and complimentary good
-Substitute goods are competitors and have opposite reaction to price changes
-Complimentary goods are used together and have same reaction to price changes.
500
The spread of a damaging computer virus would have this effect on the power generation market.
decrease in supply
500
France Bushels of Grapes 100
France Bushels of Tomatoes 25
Italy Bushels of Grapes 100
Italy Bushels of Tomatoes 50
(a) Does France, Italy, or neither nation have a comparative advantage in producing grapes? Explain.
France has a comparative advantage in producing grapes and explains that France’s opportunity cost of producing 1 bushel of grapes (0.25 of a bushel of tomatoes) is less than Italy’s opportunity cost of producing 1 bushel of grapes (0.5 of a bushel of tomatoes).
[France’s opportunity cost of producing 1 bushel of grapes is 0.25 of a bushel of tomatoes (25/100 = 0.25)(25/100 = 0.25) . Italy’s opportunity cost of producing 1 bushel of grapes is 0.5 of a bushel of tomatoes (50/100 = 0.5)
500
Outside the "curve"
unattainable
500
In a two market economy, a constant opportunity cost will appear as this type of Production Possibility Curve.
Linear