Random Hodge Podge
When a change in the price of a good that changes the quantity of the good demanded by the consumer happens, this is called the ______ effect.
What is SUBSTITUTION
What is the utility maximizing rule formula?
(MUx)/(Px) = (MUy)/(Py)
This economic concept demonstrates the relationship between inputs and outputs both in the short run and the long run.
What is PRODUCTION FUNCTION?
Perfectly competitive markets are price _______ while monopolies, oligopolies, and monopolistic competition are price ________.
What is TAKER and MAKER?
In factor markets, the factors of production are supplied by...
What is HOUSEHOLDS?
Based on the Lorenz curve you learn that the Canada has a Gini ratio of .25 and United States has a Gini ratio of .85. Based on this fact you may conclude that...
The United States has more unequal distribution of wealth
The demand for resources is determined by the products they help produce- this is called what?
What is DERIVED DEMAND
prices of inputs, technology, taxes and subsidies, price forecasts, and the quantity of sellers on the market are all considered...
What is DETERMINANTS OF SUPPLY?
This occurs as the firm employs more of one input, holding other inputs constant, to produce output in the short run.
What is DIMINISHING MARGINAL RETURNS?
An imperfectly competitive factor market is called this.
What is MONOPSONY?
Firms will continue to hire workers until these two curves equal each other
The MRP= MFC
Or Value of the Marginal Product= Marginal Resource cost (potato/ potato)
Why is a lighthouse a "purely public good"?
Because anybody can use it, and the government cannot exclude people
This is a single buyer in a factor market.
What is a MONOPSONY
This is measured by the percentage change in quantity demanded divided by the percentage change in price or the responsiveness of the quantity demanded to changes in price.
What is the PRICE ELASTICITY OF DEMAND?
Total cost is the sum of...
What are FIXED COSTS AND VARIABLE COSTS?
In an inefficient market, price will be greater than this.
What is MARGINAL COST?
Paradoxically, if the government puts a ____________ on a monopsony, it can actually INCREASE quantity of workers hired
Minimum wage
Explain the tragedy of the commons
Overconsumption of the public resource
This yields the same elasticity for a specified range regardless of the direction of the change in price.
When the magnitude of the value of elasticity is less than 1, the demand is described as being
What is INELASTIC?
This is unique about fixed costs as output changes when compared with all other types of costs.
What is FIXED COSTS REMAIN CONSTANT, EVEN AT ZERO PRODUCTION?
High start-up costs and exclusive ownership of key resources are called...
What is BARRIERS TO ENTRY?
Costs are minimized where the marginal product per dollar's worth of each resource used is the same. This describes the...
What is the LEAST COST RULE?
Shepro earns $1,000 a week and pays a total of $200 in taxes. Hines earns $2,000 a week and pays a total of $300 in taxes. Based on the income and tax rates we can assume that the government has implemented a ______ tax rate.
Regressive
How would unemployment show up in a Production Possibilities Curve (Frontier).
Point inside (inefficiency)
Describe what unit-elastic means?
Change in the %Q/%P= 1. Basically if you cut the price by 10%, you will gain 10% more sales, and thus total revenue is the same
In the long run, all costs become...
What is VARIABLE?
This is a decision-making theorem within game theory that states a player can achieve the desired outcome by not deviating from their initial strategy.
What is NASH EQUILIBRIUM?
The price of labor is called this.
What is a WAGE?
Producing any non-efficient quantity results in this thing that you have to often find the area of?
What is DEADWEIGHT LOSS?
An individual, business, or country that can produce a good or service at a lower opportunity cost than another producer has a...
What is COMPARATIVE ADVANTAGE?
On a supply and demand graph, quantities to the left of and above equilibrium price are called this, while quantities to the left of and below equilibrium price are called this.
What is CONSUMER SURPLUS and PRODUCER SURPLUS?
These are the two types of profit, and microeconomics focuses on this one.
What are ACCOUNTING PROFITS and ECONOMIC PROFITS? What is ECONOMIC PROFIT?
When supply and demand are out of equilibrium, it creates this kind of loss.
What is DEADWEIGHT LOSS?
The quantity of labor supplied is (positively/negatively) related to the wage rate.
What is POSITIVELY?
Positive or negative consequences of an activity that affects other parties without this being reflected in the cost of the goods or services involved is called...
What are EXTERNALITIES?
A government places this on a market and collects revenue on each unit sold.
What are excise taxes
Price floors and price ceilings are examples of...
What is GOVERNMENT POLICY (Price controls)
Comparing marginal revenue and marginal cost helps a firm achieve this.
What is PROFIT MAXIMIZATION?
Advertising to differentiate a firm's products or services is most often used in this type of market.
What is MONOPOLISTIC COMPETITION?
The productivity of the worker is a determinant of labor __________________
What is DEMAND?
Goods that are non-rival and non-excludable are called...
What is PUBLIC GOODS?
This increases a firms economic profit without increasing the firms incentive to increase output.
A lump sum subsidy
Two tools of government policy that attempt to control international trade are...
What are TARIFFS and QUOTAS?
In the short run, firms decide to operate or shut down by looking at
PRICE AND AVERAGE VARIABLE COST CURVE
Firms that often rely on the actions of other firms in decision-making operate in this type of market.
What is OLIGOPOLY?
A typical firm hires additional labor as long as the marginal revenue product is greater than the marginal factor cost in which type of labor market?
What is MONOPSONY?
The mathematical number correlating to the Lorenz curve is called what? AND what does it range from
The GINI coefficient 0= perfect equality, 1= perfect inequality