Econ 101
Is the study of scarcity and choice.
What is economics?
If consumers prefer to consume at point C. That point represents...
What is the lowest opportunity cost?
When tastes change in favor of a good.
What is demand increases?
When the price is expected to rise in the future.
What is a supply decreases today?
A market with a large number of sellers and buyers.
What is a perfect competition market?
The value of the next best alternative that you must give up in order to get an item.
What is opportunity cost?
If the economy is producing at levels A, B or C.
What is productive efficiency?
*Production at a point on its PPC.
When income rises.
What is demand increases?
When the price of inputs rise.
What is supply decreases?
A market where the invisible hand sets a price and quantity at which Qs = Qd.
What is market equilibrium?
Is the study of the costs and benefits of doing a little bit more of an activity versus doing a little bit less.
What is marginal analysis?
If the economy is producing at point D.
What is inefficiency?
When the number of buyers falls.
What is demand decreases?
Find the supply shifter:
A new technology such as online bank accounts speed up sales.
A new trade agreement allows Korean cars to enter the Mexican market.
Winter is cold and people buy less ice cream.
What are changes in the number of producers? (a new trade agreement)
A fire that damages two supermarkets is most likely to cause these effects on the local market of chairs.
What is a decrease in supply? What is an increase in Pe? What is a decrease in Qe?
The branch of economic analysis that describes the best way the economy actually works.
What are positive economics?
If the market can reach point E.
What is economic growth?
A higher price of a good or service, all other things being equal, leads people to demand a smaller quantity of that good or service.
What is the law of demand?
All other things equal, the price and quantity supplied of a good are positively related.
What is the law of supply?
A new free trade agreement that allows the importation of oranges to Mexico.
What is an increase in supply? What is a decrease in Pe? What is an increase in Qe?
The rate at which one good can be exchanged for another.
What are terms of trade?
If production was at a hypothetical point F.
What is unattainable production?
It changes the quantity demanded at any given price.
What is a change in demand?
If the change in the price of Coke causes a fall in the supply of hamburgers these two products must be..
What are complementary goods?
If a rumor about the possible poisonous effects of eating lettuce. The effects on the market that take place are..
What is demand decrease? What is Pe decreases?
What is Qe decreases?