Shared Flashcard Set

Details

intro to micro prelim 1
burkhauser micro prelim 1
18
Economics
Undergraduate 1
10/03/2012

Additional Economics Flashcards

 


 

Cards

Term
normative statement
Definition
value/idea/assumption
express an opinion about what ought to be
Term
positive statement
Definition
fact
objective statements that can be tested or rejected
Term
normal good
Definition
increase in income = increase in demand
Term
opportunity cost
Definition
w.e must be given up to obtain some item
Term
elasticity
Definition
measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinants
Term
total revenue
Definition
price x quantity
Term
shortage
Definition
quantity demanded exceeds quantity supplied

price ceiling causes shortages
Term
shift in curve
Definition
demand curve: Any change that reduces the quantity demanded at every price shifts the demand curve to the left and is called a decrease in demand.
change that increases quantity demanded at every price shifts demand curve to the right and is an increase in demand

supply curve: Any change that raises quantity supplied at every price, such as a fall in the price of sugar, shifts the supply curve to the right and is called an increase in supply. Similarly, any change that reduces the quantity supplied at every price shifts the supply curve to the left and is called a decrease in supply.
Term
inferior good
Definition
demand increases when income falls
ex, bus rides
Term
decrease in demand
Definition
demand curve shifts LEFT
Term
increase in demand
Definition
demand curve shifts RIGHT
Term
decrease in supply
Definition
supply curve shifts LEFT
Term
increase in supply
Definition
supply curve shifts RIGHT
Term
movement along supply curve caused by
Definition
change in actual good's price
Term
shift along supply curve caused by
Definition
change in other variables affecting good, like input prices, technology, expectations, # of sellers
Term
complements
Definition
two goods where decrease in price of one good = increase in demand for other good
Term
production possibilities frontier
Definition
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
Term
efficiency
Definition
max benefits from scarce resources
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