Shared Flashcard Set

Details

Economics Test #1
Review of economics terms
35
Economics
10th Grade
10/03/2016

Additional Economics Flashcards

 


 

Cards

Term
Microeconomics
Definition
Study of choices made by economic actors (i.e. individual people, households, companies, and individual markets), small scale economic issues, or specific economic issues (i.e. unemployment in the auto industry)
Term
Macroeconomics
Definition
Looks at the behavior of entire economies such as the unemployment in the U.S. (large scale)
Term
Scarcity
Definition
All resources are limited, but people's wants are unlimited --> lack of things people want
Term
Types of resources
Definition
Natural (i.e. oil, wind, coal)
Human (i.e. assembly line workers, scientists)
Capital (i.e. department stores, dams, computers)
Entrepreneur (i.e. people who attempt to start a new business)
Term
Factors in production
Definition
The type of skilled work force, factories, capital to invest, and a market to sell your goods
Term
Trade offs
Definition
When one sacrifices one thing for another (if you use a resource to produce/consume one thing, that resource cannot be used to produce/consume something else)
Term
Opportunity cost
Definition
Value of the thing you are giving up in a trade off
Term
Law of supply
Definition
producers increase supply when they can sell a product for more money due to high demand (& vice versa)
Term
Factors which affect supply
Definition
Demand for the product, amount of raw materials available for production
Term
Production costs
Definition
wages/salaries, rent, interest on loans, electric bills, raw materials, other goods and services used to manufacture and sell the product
Term
Profit
Definition
Money left over after a business has paid all of its production costs
Term
Elastic supply
Definition
A small change in price greatly affects the amount supplied
Term
Inelastic supply
Definition
A small change in price has little impact on the amount supplied
Term
Supply schedule
Definition
A listing that shows quantity supplied at various prices
Term
Total product
Definition
All of the product(s) a company makes in a given period of time
Term
Total revenue
Definition
The total income that a business receives from selling its products
Term
Law of demand
Definition
An inverse relationship between a product's price and the quantity demanded
Term
Income effect
Definition
When price increases, people will not be able to afford as much --> demand decreases due to price increase
Term
Substitution effect
Definition
When people substitute similar, lower priced items for the desired item (Leland brand if Tae brand is too expensive)
Term
Diminishing marginal utility
Definition
as more of a product is consumed, the satisfaction gained decreases
Term
Elastic demand
Definition
A small change in price greatly affects the quantity demanded
Term
Inelastic demand
Definition
A small change in price has only a slight effect on the quantity demanded
Term
Demand curves and shifts
Definition
When a product's demand shifts, different quantities of a product are demanded at each price
Term
Consumer tastes and preferences
Definition
If they like it, they demand it. If they don't, they don't demand it.
Term
Market size
Definition
More buyers, more demand
Term
Income
Definition
More money, more demand
Term
Prices of related goods
Definition
Goods that are similar to or complement certain goods can be affected by demand shifts
Term
Substitute goods
Definition
Used to replace the purchase of similar goods when prices increase
Term
Complementary goods
Definition
Commonly used with other goods
Term
Increases in demand/supply shift
Definition
To the right
Term
Decreases in demand/supply shift
Definition
To the left
Term
Market equilibrium
Definition
When supply and demand in the market are equal
Term
Equilibrium price
Definition
The price at the point where supply and demand are equal
Term
Shortage
Definition
A lack of products demanded
Term
Surplus
Definition
An overabundance of supply caused by overproduction or low demand
Supporting users have an ad free experience!