Terms : Hide Images
| 14120818 | demand | the willingness and ability to buy or consume something | 0 | |
| 14120819 | law of demand | as price goes up, quantity demanded goes down. | 1 | |
| 14121357 | 3 factors that influence demand | sustitution effect, real income effect, diminishing marginal utility | 2 | |
| 14121358 | substitution effect | as the price of one good or service goes up, quantity demanded for all of its substitutes goes up. | 3 | |
| 14121359 | real income effect | as prices rise and your income stays the same, quantity demanded for all goods or services goes down. | 4 | |
| 14121360 | diminishing marginal utility | assuming all things stay the same with each additional unit consumed, we recieve less satisfaction then the previous unit consumed. | 5 | |
| 14127294 | ceteris paribus | all things held constant | 6 | |
| 14127295 | demand curve | the graphical representation of a demand scheduale | 7 | |
| 14127296 | only shows how we respond to changes in price | demand curve | 8 | |
| 14127297 | market demand | sum of all individual demands in the market | 9 | |
| 14127298 | 2 causes in shifts | income and expectations | 10 | |
| 14127299 | income | ex) normal gods and inferior | 11 | |
| 14127300 | normal goods | goods that people buy more of as income increases | 12 | |
| 14127301 | inferior goods | goods that people buy less of as income increases | 13 | |
| 14127302 | 2 factors influencing supply | incentive for greater profit and market entry | 14 | |
| 14127303 | what is the largest factor influencing elasticity | time | 15 | |
| 14127304 | in the longe run supply becomes more... | elatic | 16 | |
| 14127305 | in the short run supply becomes more... | inelastic | 17 | |
| 14127306 | GDP | the total dollar value of goods and services produced by the US in a year | 18 | |
| 14127307 | inflation | general increase in price levels | 19 | |
| 14127308 | real gdp | constant prices | 20 | |
| 14127309 | nominal gdp | currrent prices | 21 | |
| 14185657 | what do you use to measure inflation | consumer price index | 22 | |
| 14185658 | 4 limitations of GDP | negative externalities, underground activities, nonmarket activities, quality of life | 23 | |
| 14185659 | aggregate | sum of all of the parts | 24 | |
| 14185660 | total cost | fixed costs + variable costs | 25 | |
| 14185661 | marginal cost | additional cost of producing one more unit | 26 | |
| 14185662 | if revenue is >operating costs should you stay open or close down | stay open | 27 | |
| 14185663 | if revenue is < operating costs should you stay open or close down | close down | 28 | |
| 14185664 | 2 tools of fiscal policy | taxes, spending | 29 | |
| 14185665 | entitlement programs | medicare, medicaid, social security | 30 | |
| 14186325 | 3 tools of monetary policy | reserve requirement ratio, discount rate, open market opperations | 31 | |
| 14186326 | RRR | percent of deposits banks must keep on hand | 32 | |
| 14186327 | examples of RRR | expansionary and contractionary monetary policy | 33 | |
| 14186328 | discount rate | intrest banks pay when they borrow money | 34 | |
| 14186329 | open market opperations | buying and selling of government securities | 35 | |
| 14186330 | porportional | every one pays the same percent of their income | 36 |
