Economic Pinciples
Definition of the Cost-Benefit Principle.
What is measuring the pros and cons when making a decision.
Benefits > Costs = Make Decision
Costs > Benefits = Don't Make Decision
The Law of Demand and the Law of Supply.
What is when price goes up demand goes down (vice versa) and when price goes up supply goes up (vice versa)
The 4 types of Market Structures.
What is Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly
The labels that go on the X and Y axises on a Labor Market graph.
What is Wages on the Y axis and Number of Hours on the X axis.
The name for a business that owned and ran by only one person.
What is a Sole-Proprietorship.
Definition of the Opportunity Cost Principle.
What is the next best option/alternative
(you cost yourself the opportunity of choosing the next best option)
The 6 demand shifter determinants.
What is Income, Number of Buyers, Substitutes, Expectations, Compliments, Tastes
Each market structure put in order from most to least market power on your whiteboard.
1. Monopoly
2. Oligopoly
3. Monopolistic Competition
4. Perfect Competition
The people who supply & demand labor in the labor market.
What is the workers supply labor & the businesses demand labor.
The name for a business that is owned and ran by 2 or more people where they pool resources together.
What is a Partnership.
The definition of the Marginal Principle.
What is making decisions marginally or one at a time increasing the utility of each decision.
The two short-hand equations that represent shortage and surplus.
What is...
Shortage: Qd>Qs
Surplus: Qs> Qd
Each market structure put in order from most to least competition on your whiteboard.
1. Perfect Competition
2. Monopolistic Competition
3. Oligopoly
4. Monopoly
The term used to describe equilibrium in a Labor Market.
The name for a business that has a parent company that provides resources & materials but requires a royalty fee in return.
What is a Franchise.
Definition of the Interdependence Principle.
What is the best choice that we can make individually is effected by the choices of others.
The difference between quantity demanded and demand.
What is quantity demanded is the amount that is demanded at that ONE price point, and demand is is the amount that is demanded at EVERY price point.
The definition of Market Failure.
What is the inefficient use of goods/services due to people making decision based on their own self interest.
The shift in supply that will occur when a job becomes more desirable to work.
What is the supply curve will shift to the right indicating an increase in the supply.
The name for a business that has individual investors (stockholders) that provide money for that business to expand & grow.
What is Corporation.
Draw a PPF graph with a point that represents underutilization, perfect utilization, and impossible utilization of resources.
Additionally, list all the ways that we can expand the PPF curve to make all production points on the graph possible.
(See graphs given)
What is increase the Factors of Production.
Land, Labor, Capital (human capital)
Draw a completely correct supply & demand graph for the following scenario...
Mr. Doyle is looking to buy a new dirt bike. However, the recent gas prices have skyrocketed. What will these high prices do to the demand curve for Mr. Doyle’s new dirt bike?
What is the demand curve will shift to the left illustrating a decrease in the demand for a dirt bike due to the increased price of it's complimentary good (gas)
The name for, and an example of, a good that is both non-excludable and non-rivalrous.
What is a Public Good
ex) streetlights, public parks, fireworks, etc.
The shift in demand that will occur when companies use AI rather than humans to complete tasks and jobs.
What is the demand curve will shift to the left indicating a decrease in amount works companies want to hire.
The business type that is most common.
What is Sole-Proprietorship.