






Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Class: ECON 1000 - Introduction To The American Economy; Subject: Economics; University: University of Missouri-St Louis; Term: Fall 2011;
Typology: Quizzes
1 / 12
This page cannot be seen from the preview
Don't miss anything!
the study of scarcitythe study of choices or decision making TERM 2
DEFINITION 2 LandLaborCapitolEntrepreneurship TERM 3
DEFINITION 3 Land earns rentlabor earns wagescapitol earns interestentrepreneurship earns profit TERM 4
DEFINITION 4 "The First Economist""Invisible Hand"Wrote "The Wealth of Nations" TERM 5
DEFINITION 5 Scarcity is the fundamental economic problem of having humans who have wants and needs in a world of limited resources.
DEFINITION 7 shortage-- temporary, sellers in marketplaceV.Scarcity- constant, can never be solved TERM 8
DEFINITION 8 avoidable, could be solvedgoverning body chooses not to address basic human needs TERM 9
DEFINITION 9 Capitalism / Free enterprise- private property ownership- Democracy TERM 10
DEFINITION 10 one individual makes all the decisions in response to what to produce, how to produce, and for whom do these products go toCommunism, Socialism, Tyranny, Dictatorship
examination and understanding of definitions, facts, theories, relationships and ability to apply concepts-black and white- objective"What is it?" TERM 17
DEFINITION 17 opinions values judgementssubjective"What ought it to be?" TERM 18
DEFINITION 18 slope is infinity TERM 19
DEFINITION 19 slope is 0 TERM 20
DEFINITION 20 negative, decreasing, indirect, inverseline with downward slope to the right
positive, increasing, direct TERM 22
DEFINITION 22 Opportunity cost is the cost of any activity measured in terms of the value of the next best alternative foregone. Measurement of what is given up TERM 23
DEFINITION 23 Production Possibilties Curve- max combination of g/s that can be produced in an economy in a given period of time TERM 24
DEFINITION 24
DEFINITION 25 constant tradeoff/ opportunity costeach product is the other's o/c1 acre would have to have same PPC as another 1 acre of land- make it almost impossible--NOT the real world
Resources increase = PPC increase (shift right)Resources decrease = PPC decrease (shift left) - natural disasters, man made disasters, human disease TERM 32
DEFINITION 32 Technology increase = PPC increase (shift right) Technolgy decrease = PPC decrease (shift left) TERM 33
DEFINITION 33 "once all factors of production are at maximum output and efficiency, producing more will cost more than average." TERM 34
DEFINITION 34 In economics, diminishing returns is the decrease in the marginal (per-unit) output of a production process as the amount of a single factor of production is increased, while the amounts of all other factors of production stay constant. TERM 35
DEFINITION 35
PPC --> Specializing in production --> Trade --> Gains from Trade TERM 37
DEFINITION 37 A trading party is said to have AA in the production of a product if it can produce the product a. in a larger amount using the SAME set of RESOURCES b. with less or fewer RESOURCES used TERM 38
DEFINITION 38 A trading party is said to have CA in the production of a product if it can produce the product with lower OPPORTUNITY COST TERM 39
DEFINITION 39 Post hoc ergo propter hoccause does not equal effect TERM 40
DEFINITION 40 you must compare things that have a common baseyou cannot compare apples to oranges
p(x) PRICE Number of Sellers Costs of Production Technology TERM 47
DEFINITION 47 Equilibrium is the condition of a system in which competing influences are balanced. where the Demand intersects Supply TERM 48
DEFINITION 48 point to point changes on a curve cause change in Quantity Demanded of Product TERM 49
DEFINITION 49 cause changes in DEMAND for a product TERM 50
DEFINITION 50 The Law of Supply states that at higher prices, producers are willing to offer more products for sale than at lower prices,
horizontal summation of all individual sellers quantity supplied at each and every price TERM 52
DEFINITION 52 quantity that sellers are willing and able to produce at each and every price P --> Q(s) TERM 53
DEFINITION 53 when quantity supplied is greater than quantity demanded- sellers react by lowering prices and lowering quantity supplied- buyers react to lowered prices by increasing Quantity demanded TERM 54
DEFINITION 54 unwanted and unplanned event- sellers increase prices and increase Q(s)- buyers will react to higher prices by lowering Quantity Demanded TERM 55
DEFINITION 55 Demand - entire relationship between prices and quantity of this product--- "The Demand Curve"Quantity Demanded- refers to one particular point on the demand curve --- How much of the product is demanded at each particular price