click below
click below
Normal Size Small Size show me how
ECON UNIT 1
studying for test!!!
Question | Answer |
---|---|
Shifts of Demand | 1. Tastes or preferences 2. Income effect 3. price of related goods 4. # of consumers 5. future expectations |
shifts of supplies | 1. # of sellers 2. Price/availability of resources 3. future expectations of profit 4. Government action 5. technology |
factors of production | 1. land 2. labor 3. capital (human or physical) 4. entrepreneurship |
human capital | any skill, knowledge, or experience possessed by the individual/population. |
capital goods | goods used to make consumer goods (more capital = more growth in the future) (factories, blenders) |
consumer goods | things that can be consumed or used up (apple, tissue, pencil, etc) |
PPC curve | relationship between consumer goods (y-axis) and capital goods (x-axis) |
constant PPC curve | when the x and y axis use the same resources (fixed opp. cost) |
bowed/concave/increasing PPC curve | different resources; products must be decided on opp. cost |
Law of demand | there is an inverse relationship between quantity demanded and price |
law of supplies | there is a positive/direct relationship between price and quantity demanded. |