Basic Econ Concepts
The amount of product X that must be given up in order to obtain some of product Y is known as this.
What is opportunity cost?
The law of demand states that quantity demanded goes down as this goes up.
What is price?
The quantity at which perfectly competitive firms produce.
What is where MC = MR?
The three imperfectly competitive firms.
What are oligopolies, monopolistically competitive firms and monopiles?
The two types of firms in the factor market.
What are perfectly competitive firms and monopsonies?
The basic economic problem of all economies is that people have unlimited wants, but have limited ___________-.
What are means (resources)?
Suppose that people who work in the paint industry face a great risk of developing an incurable disease. A medical breakthrough that eliminates the risk will most likely cause which this shift of supply and demand curves in the paint industry.
What is a rightward supply shift?
This is a key characteristic of perfectly competitive firms making zero economic profit.
What is free entry and exit of firms?
If a firm can perfectly price discriminate, this means they can do this.
What is charge the maximum price every consumer is willing to pay?
The profit maximizing quantity of labor.
What is where MRC = MRP?
The four resources of an economy.
What are land, labor, capital and entrepreneurship?
The income of a country goes up and the demand for product X goes down. Product X must be this.
What is an inferior good?
Demand for perfectly competitive firms is this.
What is perfectly elastic?
In order to find price on a monopoly graph, you must do this.
What is where MR=MC and then go up to the demand curve to find price?
If the demand for a product goes up in the product market, the demand for the workers will _________
What is increase?
A bowed out PPC represents this.
What is increasing opportunity cost?
Cross price elasticity of demand for Gibson and Fender guitars is 2.9. This means that the goods are related in this way.
A farmer produces peppers in a perfectly completive market. If price falls, the farmer should produce until...
What is price falls below average variable cost?
When an oligopoly does the same thing regardless of what the other firm does.
What is a dominant strategy?
This type of externality has two cost curves, and the curve that is shifted, shifts right.
What is a positive production externality?
Newland can product 10 units of cloth or 2 units of food. Beeland can produce 10 units of cloth or 1 unit of food. The country with the absolute advantage in food production is ___________.
Who is Newland?
The supply of computers goes down and the total revenue goes up. The demand for computers must be this.
What is price inelastic?
If a perfectly competitive firm makes profit, this will follow.
What is firms will enter the market, increasing supply, which increases quantity and decreases price?
The two types of regulations for monopolies and their conditions.
What is fair return (price = ATC) and marginal cost pricing (MC = P)?
How externalities are internalized?
What are Pigouvian subsidies/taxes?