Econ Defs and Opportunity Costs
a social science that
studies how people allocate their
limited resources to try to satisfy
their unlimited wants
What is Economics
A measure of the satisfaction
What is Utils?
Your demand for any good or service
is how much you are _____________
to purchase at various prices during
a specified time period
What is willing and able?
the optimal allocation of scarce resources so that total societal welfare is maximized and waste is minimized (What Consumer surplus and Producer Surplus tells us).
What is Efficiency?
Calculate consumer surplus
What is 1/2 (Base)*(Height)?
value of the next best alternative
that we had to forgo, or do without, for the
decision or choice we made.
What is Opportunity Cost?
The change in total utility generated by
consuming one additional unit of a good or
service
What is Marginal Utility?
All other factors being the same. (only one thing changes)
What is Ceteris Paribus?
A measure of how much the buyer values the good or service
What is Willingness to Pay?
The principle of distributing resources, opportunities, and wealth
fairly across a society
What is Equity?
the current value of all final goods
and services produced in our nation each
year
What is Gross Domestic Product? (GDP)
Graphical representation of all the consumer
bundles available when all consumer income is
spent
What is the Budget Line?
When we refer to the entire __________
we are looking at all actual and potential
buyers of a particular good or service.
What is market demand?
The marginal benefit from a good or service minus the price paid for it
What is Consumer Surplus?
As the price of a good or service goes up,
producers of that good or service generally
provide larger quantities, all other things being
constant.
What is the Law of Supply
what ought to be rather than just describing what is
What is Normative?
As consumption per unit of time or good
increases, marginal utility decreases
What is the Law of Diminishing Marginal Utility?
the specific quantity
consumers are willing to buy at a specific
price, represented by a single point on a
demand curve.
What is Quantity demanded?
The amount a seller is paid for a good or
service minus the seller’s cost
What is Producer Surplus?
Determinates of Change in demand are
1. Income and Wealth
2. Tastes or Presfrences
3. Population and Number of Buyers
4. Prices of Related goods
5. _________
What are expectations?
How producers, consumers, and
societies use scarce resources to
produce, process, market, and
consume food and fiber products
What is Agricultural Economics?
The utility function is the collection of all
goods and services generated by their
consumption
What is a Bundle?
When the “own” price changes, quantity
demanded changes according to the law
of demand, and there will be a movement
_____________________________
what is from one point to another point along the
same demand curve?
The price where the market clears and there is no
surplus or shortage of the good
What is Equilibrium Price?
Determinates of Change in Supply are
1. Technology and Productivity
2. Price of inputs used to produce a good or service
3. _______
4. Number of Firms in the Industry
5. Expectations
What are taxes?