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econ
final
| Term | Definition |
|---|---|
| economics | the study of how people, households, firms and gov make choices in light of scarce resources |
| microeconomics | individual person, individual firms |
| scarcity | unlimited wants but limited resources |
| opportunity cost | what you give up to get what you want |
| ceteris paribus | all other variables remain the same |
| PPF | model that shows the various combinations of two goods or services a country can produce based upon its resrouces and technology |
| factors of production (money) | labor (wage), land (rent), capital (interest; financial capital: stock, bond, bank, loan), entrepreneur |
| trade | |
| comparative advantage | lowest opportunity cost |
| absolute advantage | |
| demand and supply | |
| law of demand | |
| law of supply | price increases quantity supplied increases; price decreases quantity supplied decreases |
| equilibrium | |
| demand | various Q of a good or a service or a service a consumer is willing and able to buy at various P |
| quantity demanded | specific Q of a good or service a consumer is willing and able to buy at a specific P |
| shortage | |
| surplus | |
| price floor | |
| elasticity | |
| price of elasticity of demand | |
| values of elasticity | |
| externality | |
| public good | |
| free rider | |
| perfect competition characteristics | many firms; same product; price taker |
| monopoly characteristics | one firm; unique product; price maker |
| anti trust legislation | the core U.S. laws—the Sherman Act (1890), Clayton Act (1914), and FTC Act (1914)—prohibit price-fixing, bid-rigging, and monopolization, enforced by the DOJ and FTC to prevent consumer harm. |
| price discrimination | charge different groups of consumers different prices for same good |
| HHI | sum of the market shares squared of the 50 firms in the in industry |
| demand for resources | |
| oligopoly | |
| prisoners dilemma | both remain silent 15 yrs one confesses 2 yrs one remains silent 25 both confess 20 yr in prsion |
| gini ratio | mathematical depiction of income equality (area of A /area of A + B households |
| income inequality | |
| lorenz curve | graphical representation of wealth inequality |
| income mobility | |
| poverty | situation in whcih you cant afford the basic necessities of life |
| poverty line | established by the US govtl the difference between living in poverty and not licinf in poverty |
| trade surplus | |
| trade deficit | |
| cartel | org collusion agreement to control the market |
| monopoly vs. per comp | |
| demand for resources | |
| derived demand | |
| MRP (MVP) | |
| consumer choice theory | |
| budget equation | |
| budget line | |
| utility | |
| marginal utility | |
| indifference curve | |
| accounting profit | |
| economic profit | |
| economies of scale | |
| short run vs long run | |
| break even in the long run | |
| shift of curves | |
| S; Technology D; # of buyers |
Created by:
smbaha