Principles of Microeconomics Exam 1
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| 844386806 | Microeconomics | the study of how households and firms make decisions and how they interact in markets | 0 | |
| 844386807 | Macroeconomics | the study of economywide phenomena, including inflation, unemployment, and economic growth | 1 | |
| 844386808 | Scarcity | the limited nature of society's resources | 2 | |
| 844386809 | Opportunity Cost | whatever must be given up to obtain some item | 3 | |
| 844386810 | Consumer Surplus | the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it | 4 | |
| 844386811 | Producer Surplus | the amount a seller is paid for a good minus the seller's cost of providing it | 5 | |
| 844386812 | Direct Relationship | Two variables move in the same direction. It one increases the other increases. If one decreases the other decreases. | 6 | |
| 844386813 | Inverse Relationship | Two variables move in opposite directions. If one increases the other decreases; and if one decreases the other increases. | 7 | |
| 844386814 | Independent Relationship (Zero Relationship) | No relationship at all. | 8 | |
| 844386815 | Price Ceiling | a legal maximum on the price at which a good can be sold | 9 | |
| 844386816 | Price Floor | a legal minimum on the price at which a good can be sold | 10 | |
| 844386817 | Positive Economics | The scientific aspect of economics that determines "what is?" | 11 | |
| 844386818 | Normative Economics | The portion of economics that attempts to address "what should be?" | 12 | |
| 844386819 | Law of Supply | the claim that, other things equal, the quantity supplied of a good rises when the price of the good rises | 13 | |
| 844386820 | Law of Demand | the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises | 14 | |
| 844386821 | Equilibrium | a situation in which the market price has reached the level at which quantity supplied equals quantity demanded | 15 | |
| 844386823 | Price Elasticity of Supply | a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price | 16 | |
| 844386824 | Cross Price Elasticity of Demand | a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in the price of the second good | 17 | |
| 844386825 | Income Elasticity of Demand | a measure of how much the quantity demanded of a good responds to a change in consumers' income, computed as the percentage change in quantity demanded divided by the percentage change in income | 18 | |
| 844386826 | Utility - Definition | a measure of happiness or satisfaction | 19 | |
| 844386827 | Capital | the equipment and structures used to produce goods and services | 20 | |
| 844386828 | Production Possibilities Frontier | A graph that shows the various combinations of amounts of two commodities that could be produced using the same fixed total amount of each of the factors of production. | 21 | |
| 844386829 | Goods | A material that satisfies human wants, and provides utility. | 22 | |
| 844386830 | Supply Curves | a graph of the relationship between the price of a good and the quantity supplied | 23 | |
| 844386831 | Demand Curves | a graph of the relationship between the price of a good and the quantity demanded | 24 | |
| 844386832 | Shortages | a situation in which quantity demanded is greater than quantity supplied | 25 | |
| 844386833 | Surpluses | a situation in which quantity supplied is greater than quantity demanded | 26 | |
| 844386834 | Substitutes | two goods for which an increase in the price of one leads to an increase in the demand for the other | 27 | |
| 844386835 | Complements | two goods for which an increase in the price of one leads to a decrease in the demand for the other | 28 | |
| 844386836 | Changes in Demand | Shifts or pivots in the demand curve | 29 | |
| 844386837 | Changes in Supply | shifts or pivots in the supply curve | 30 | |
| 844386838 | Market Equilibrium | Supply and demand are equal. | 31 | |
| 844386839 | Utility - Concept (What does it mean when we say that something gives us utility?) | It is a "good" good. | 32 | |
| 844386840 | Types of Economies | See "Lecture 02, Slide 27" | 33 | |
| 844386841 | Determinants of Demand | 1. Income - Money earned over a period of time 2. Wealth - Net Worth 3. Tastes - Changes in Taste 4. Price of Substitutes - Wine 5. Price of Complements - Pizza 6. Future Prices - Memorial Day | 34 | |
| 844386842 | Determinants of Supply | 1. Input Prices - Resources and Raw Materials 2. Technology - More Efficient Use of Resources 3. Number of Sellers 4. Future Prices - Price Expectations 5. Government Policies A. Subsidies B. Taxes C. Restrictions 6. Weather (Agriculture) | 35 | |
| 844386843 | Cross Price Elasticity of Demand (Between two Products) | a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in the price of the second good | 36 | |
| 844386844 | Income Elasticity of Demand | a measure of how much the quantity demanded of a good responds to a change in consumers' income, computed as the percentage change in quantity demanded divided by the percentage change in income | 37 | |
| 844386846 | Tax Incidence | the manner in which the burden of a tax is shared among participants in a market | 38 | |
| 844386847 | Resources | Labor, Capital, Land, Natural Resources, and Entrepreneurship | 39 | |
| 844386848 | Labor Resources | The time people spend producing goods and services | 40 | |
| 844386849 | Land Resources (Natural Resources) | Gifts of Nature such as physical space and prime materials (timber, arable land, crude oil, iron ore, coal, etc.) Renewable and Exhaustible Resources | 41 | |
| 844386850 | Renewable Resources | Resources that can regenerate themselves so they need never run out | 42 | |
| 844386851 | Exhaustible Resources | Resources that are available in limited amounts | 43 | |
| 844386852 | Entrepreneurial Resources | Entrepreneurship and Management | 44 | |
| 844386853 | Entrepreneurship | The willingness by creative people to take risks to create new and innovative products. | 45 | |
| 844386854 | Management | The ability to combine the other resources (labor, capital, and natural resources) into a productive venture. | 46 | |
| 844386855 | Capital Resources | Something produced that is long-lasting and used to produce other goods | 47 | |
| 844386856 | Physical Capital | Long lasting physical goods that are themselves used to produce other products. | 48 | |
| 844386857 | Human Capital | Skills and Knowledge possessed by workers, that last for many years, which itself goes into producing other things. | 49 | |
| 844386858 | Capital Stock | The total amount of capital available to a nation, in all forms, for productive use at any given time. | 50 | |
| 844386859 | Capital Good | Can be used to make other capital goods or consumer goods | 51 | |
| 844386860 | Financial Capital | Owners of the resources of a company or society, most often represented by shares of stock. | 52 | |
| 844386861 | Bad | Anything with negative value to the consumer. | 53 | |
| 844386862 | Inferior Good | a good for which, other things equal, an increase in income leads to a decrease in demand | 54 | |
| 844386863 | Normal Good | a good for which, other things equal, an increase in income leads to an increase in demand | 55 | |
| 844386864 | Neutral Good | goods that have a demand that is not dependent to the income. | 56 | |
| 844386865 | Price Elasticity of Demand | a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price | 57 |
