Ap Microeconomics Flashcards

9928177406	Formula For elasticity	%change in QD/ %change in P	0
9928181833	Income Elasticity	Normal Good: Positive Inferior Good: Negative Necessity: Ed < 1 Luxury: 1	1
9928199032	Cross Price Elasticity	Substitutes ED+ Compliments ED-	2
9928229030	Wage Elasticity Formula for supply and demand	% change in quantity / % Change in wage \| % change in quantity \| / \| % Change in wage\| (we use absolute values cause Demand is downward sloping)	3
9928231452	Elasticity supply for Wages	If E<1 than job wage is not elastic, Higher skilled workers If E>1 than Job eage is elastic, Lower skilled workers	4
9928268067	Elasticity Formula for interest rate of borrowing	Quantity in borrowing / Change in interest rates	5
9928272945	Elasticity Formula for interest rate of savings	Quantity in Saving/ Change in interest rates	6
9928284648	When is something allocatively Efficient on a graph?	When price = Marginal Cost	7
9928290437	On a Perfect competition Graph MC intersects with...	The lowest point of ATC and and AVC	8
9928303100	Productive efficiency is archived when	MC is producing at the lowest part of the ATC	9
9928386127	Formula for economic profit	Total revenue - ( Implicit + explicit Costs) or Accounting profits - Implicit costs	10
9928389200	Implicit costs	Oppirtunity cost	11
9928392471	Explicit costs	The actual price of things ie food, water, housing, etc	12
9928412394	Per Unit Taxes	Shift the marginal cost curve upwards, output decreases	13
9928413553	Lump sum taxes	Marginal cost curve does not shift upward, but raises ATC upward Output stays the same Profits decrease	14
9928459959	Long Run Monopolistic competition	Price = ATC	15
9928493139	Define Economies of scale	Where increasing output decreases costs	16
9928497497	Nash Equilibrium	Where firms play both of their dominant strategies	17
9928498455	Marginal Revenue Product of a worker	Change in Total revenue resulting from the use of each additional variable input or Marginal revenue X marginal Product	18
9928591412	Derived demand	The demand for resources created by the product it makes	19
9928605084	Marginal Factor Cost	Change in total cost. Results from the employment of an additional unit	20
9928608082	MFC is the	Wage Rate for labor in a perfectly competitive labor market	21
9928611938	The firms optimal workers when	Are equal to each other when MFC = MRP	22
9928647656	Economic Rent	The extra resource gained when willing to do less A baseball player is willing to play for 30k But gets paid 40k therefore economic rent is 10k	23
9928653354	Market failures occur when	MPB> M	24
9928657104	Monosony is when	A company has a monopoly on hiring people, AKa maytag washing machines	25
9928657922	MFC curve is found where on a monosony	ABove the supply curve	26