Econ.txt

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Anonymous
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5878
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Econ.txt
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2010-02-02 00:06:44
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economics
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Flash cards for my Econ 2302 class (college)
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  1. What is Economics?
    • The social science that studies the allocation of scare resources for the creation, distribution and consumption of goods and services
    • (*Note: this is the first essay question on the 1st exam and the last question on the final exam)
  2. Who is Paul Samualson?
    The first Noble Prize winning economist.
  3. What does Miller believe?
    That the social science that studies the allocation of scarce resources for the satisfaction of insatiability of human wants.
  4. Will the rational consumer ever be satisfied?
    NO
  5. What is Macroeconomics?
    The study of the economy in total or aggregate ie. aggregate supply or aggregate demand, national income, unemployment inflation, business cycle theory, % & banking, mandatory physical policy, etc...
  6. What is Microeconomics?
    The study of the firm and its environment.
  7. What is Business Management?
    The study of how to make the firm more efficient and thus more profitable.
  8. What are the 5 Factors of Production of resources?
    Hint: Looks Like Certain Enjoyment Today
    • Land:
    • Labor:
    • Capital:
    • Entrepreneur:
    • Technology
  9. What is Land as it pertains to econ?
    not only includes arable land, but resources found above and below the surface
  10. What is Labor as it pertains to Econ?
    • 1. the labor participation rate divides all those 16 and over in the population into the number in the labor force times 100%
    • 2. the labor force of this nation includes - all those 16 and older seeking employment as well as those who are employed
    • 3. the return to labor is either wages or salaries
  11. What is Capital as it pertains to Econ?
    • 1. the capital stock of this nation includes it: Plants, Equipment, & Machines and is distinguished from the other factors of production and is person made and is distributed
    • 2. the return to capital is interest
  12. What is Entrepreneur as it pertains to Econ?
    the persons or person who combine the other factors of production together for the purpose of making a profit or suffering a loss
  13. What is Technology as it pertains to Econ?
    • 1. innovation, ie., it is producing more with the same given inputs of the factors of production
    • 2. the return to technology is a higher standard of living for society
  14. What are the Laws of diminishing returns?
    *Note: this would make an outstanding test question...*
    • -the law states the continuous increases of one input factor while holding the other input factors fixed will lead to a decrease in the per unit output of a variable input factor
    • 1. the law of increasing relative cost: the law states that each item produced in a line cost more then the previous item produced
    • 2. the law of diminishing marginal utility
    • a. utility is satisfaction received from the item consumed
    • b. marginal utility is the addition satisfaction conceived from the items consumed
    • c. the law of diminishing marginal utility states that each item consumed in a line provides less satisfaction then the previous item consume
  15. What is Supply as it pertains to Supply and Demand?
    a relationship between various quantities of goods and services producers are willing and able to produce at various prices
  16. Supply and Demand:

    What is Supply Schedule?
    a locus of points each giving the minimum price that will bring forth a give quantity of a good or service per unit of time
  17. Supply and Demand

    What is the law of supply?
    • producers or willing and able to produce more goods and services at higher prices
    • (total revenue = price x quantity)
  18. Supply and Demand

    What is a Supply curve?
    a locus of points each giving the minimum price that will bring forth a given quantity of a good or service per unit in time
  19. Supply and Demand

    What are six non-price determinants that cause shifts in supply

    Note: there is a difference between a change in supply and a change in quantity supply. a change in quantity supply is a movement up or down the existing supply curve, where as a change in supply shifts the entire supply curve to the right or to the left and is non-price determent
    • 1. Technology
    • 2. Factor Cost
    • 3. Opportunity Cost
    • 4. Taxes and Subsidies
    • 5. Expectations
    • 6. Number and Size of producers in the market
  20. Six non-price determinants that cause shifts in supply

    Technology shifts...?
    • Positive to the right
    • Negative to the left
  21. Six non-price determinants that cause shifts in supply

    What is Factor Cost?
    • 1. rent, wages, salaries, interest, etc
    • 2. rising factor cost shift the supply curve to the left
    • 3. falling factor cost shift the supply curve to the right
  22. Six non-price determinants that cause shifts in supply

    Is Opportunity cost: non-profitable or profitability?
    Profitability
  23. Six non-price determinants that cause shifts in supply

    What are Taxes and Subsidies?
    • Taxes: shift the supply curve to the left
    • Subsidies: shift the supply curve to the right
  24. Six non-price determinants that cause shifts in supply

    Expectations shifts positive / negative in which directions?
    • Positive to the right
    • Negative to the left
  25. Six non-price determinants that cause shifts in supply

    Number and size of producers in the market shifts positive / negative in which directions?
    • Positive to the right
    • Negative to the left

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