The study of how households and firms make decisions and how they interact in specific markets
Microeconomics
100
Goods produced abroad and sold domestically
Imports
100
The amount of a good buyers are willing to pay at a certain price
Quantity Demanded
200
A point of the PPF curve is considered what?
Efficient
200
How does a country know they have a comparative advantage?
By having the lower Opportunity Cost.
200
Collection of all the amounts every buyer in the market is willing to pay
Demand
200
What are the determinants of Elasticity of Demand?
Availability of close substitutes, Necessities vs Luxuries, Definition of Market, and Time Horizon
300
A visual model of the economy that shows how dollars flow through markets among households and firms
What is the Circular Flow Diagram?
300
The ability to produce a good at a lower opportunity cost than another producer
Comparative Advantage
300
a good for which an increase in income leads to a decrease in demand
Inferior Goods
300
What is the equation for Price Elasticity of Demand?
PED=Percentce change in quantity demanded/percentage change in price
400
Claims that attempt to describe the world as it is
Positive Statements
400
The ability to produce a good using fewer inputs than another producer
Absolute Advantage
400
What are the shifters of Supply?
1. Input Prices
2. Technology
3. Expectations
4. Number of Sellers
400
What is the equation for cross price elasticity of Demand?
Cross Price=Percent change in Qd of Good 1/ Percent change in price of Good 2
500
A graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology.
What is Production Possibly Frontier?
500
When should a country specialize and just produce a certain good?
When they have a comparative advantage.
500
What are the demand curve shifters?
1. Income
2. Price of Related Goods
3. Tastes
4. Expectations
5. Number of buyers
500
What is the equation for Income Elasticity of Demand?
Income= Percent change in Qd/ Percent change in Income