Factors of Production
All natural resources used to produce goods and services
What is land?
One seller
High barriers to entry
Complete control over price
What is monopoly?
When the price is more than the equilibrium price?
What is surplus?
Graphical representation of the law of supply
What is a supply curve?
Affects your life through interest rates, ability to rent, ability to buy homes, ability to get a loan, etc.
What is credit?
All human effort used to produce goods and services
What is labor?
Many sellers
Identical products
No barriers to entry
NO control over price
What is perfect competition?
When the price is less than the equilibrium price
What is shortage?
Found where the supply curve and demand curve meet
What is equilibrium?
Short term loan with high interest rates
What is a payday loan?
The resources made and used by people to produce and distribute goods and services
What is capital?
Few sellers
Slightly differentiated products
Some control over price
What is oligopoly?
Affected by income, future prices, # of buyers, etc.
What is demand?
Affected by technology, # of sellers, taxes, future price, etc.
What is supply?
The value of the next best alternative that is given up when a choice is made.
What is opportunity cost?
What is capital?
Many sellers
Slightly differentiated products
Some control over price
What is monopolistic competition?
ONLY affected by price?
What is quantity demanded?
The direction shift if the number of sellers of a product decreases due to bankruptcy?
What is left?
The legislation that prescribes open-end credit lending procedures and enhanced disclosures to consumers, limits related fees and charges to consumers, increases related penalties, and establishes constraints and protections for issuance of credit cards to minors and students.
What is the CARD act?
Factors of production impact this side of the market.
What is supply?
Airplane industry
What is oligopoly?
What is right?
Determined by supply and demand in a perfectly competitive market
What is price?
Something that encourages a person to do something or work harder
What is an incentive?