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Class: ECON 203 - Economic Principles; Subject: Economics; University: Baton Rouge Community College; Term: Spring 2015;
Typology: Quizzes
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the study of choices we make among our many wants and desires given our limited resourcesS TERM 2
DEFINITION 2 exists when human wants (material and nonmaterial) exceed available resources TERM 3
DEFINITION 3 land, labor, capital and entrepreneurs TERM 4
DEFINITION 4 natural resources used in the production of goods and services TERM 5
DEFINITION 5 physical and human effort used in the production of goods and services
equipment and structures used to produce goods and services TERM 7
DEFINITION 7 take risks; tough and risky decision; new ways to improve production techniques or to create new products; lured bu the chance of MAKING A PROFIT TERM 8
DEFINITION 8 how much an economy can produce efficiently; how that output is distributed- opportunity costs TERM 9
DEFINITION 9 people do the best they can, based on their values and information, under current and anticipated future circumstances TERM 10
DEFINITION 10 buy goods and servicessells inputs
use resources to the fullest extent, wasting no scarce resources; a point along the PPC! more of one good or service requires the sacrifice of another; NOT which point along the PPC is the best. TERM 17
DEFINITION 17 rises as a society produces more of that good; bowed outward PPC; cause is resources tend to be specialized; some resources and skills cant be easily adapted from their current used to alternative uses TERM 18
DEFINITION 18 outward shift of the PPC; only with qualitative or quantitative changes in the factors of production; advancement in technilogy, improvements in labor productivity, and new sources of natural resources TERM 19
DEFINITION 19 consumers, firms,and gov'ts: choices about what good and services will be produced; each choice has opportunity costCONSUMER SOVEREIGHTY- vote with their dollars in a market economy TERM 20
DEFINITION 20 trade-off between labor and capital; best method is the least cost method; either be labor or capital intensice
distribution mechanism- depends on income! TERM 22
DEFINITION 22 gov't uses central planning to coordinate most economic activities TERM 23
DEFINITION 23 gov't and private sectors determine the allocation of resources TERM 24
DEFINITION 24 allocated good and services through the private decisions of consumers, input, suppliers, and firmsCAPITALISM--> PRIVATE TERM 25
DEFINITION 25 quantity of a good or service demanded varies with its price, ceteris paribuswhen the price FALLS, quantity demanded INCREASESShape is like a line horizontal line decreasing
change in a goods own priced leads to a change in quantity supplied TERM 32
DEFINITION 32
DEFINITION 33 point at which MKT supply and MKT demand curves intersect TERM 34
DEFINITION 34 quantity supplied exceeds demand TERM 35
DEFINITION 35 quantity demand exceeds supply
responsiveness of quantity demanded to change in price% change in quantity / percent change in price TERM 37
DEFINITION 37 a huge change in price results only in a small change in quantity demanded; price elasticity > 1 TERM 38
DEFINITION 38 quantity demanded is responsive to even a small change in price; price elasticity < 1 TERM 39
DEFINITION 39
DEFINITION 40 maximized when price and quantity set where price elasticity of demand equals one
total revenues minus total explicit costs TERM 47
DEFINITION 47 profits are maximized when marginal revenue is equal to marginal costs TERM 48
DEFINITION 48 many buyers and sellersidentical productseasy market entry and exitno significant barriers to entry TERM 49
DEFINITION 49 market equilibrium creates flat demand curve for individual firm; they must take the price given by MKT; their influence on price is INSIGNIFICANT TERM 50
DEFINITION 50 the single supplier of a product that has no close substitute legal barriers, economies of scale, and control over a necessary factor of production
maximize profits at that output where MR equals MC; set price according to demand at the profit maximizing output TERM 52
DEFINITION 52 market structure with many firms selling differentiated products* product differentiation- slightly different products* Many sellers; free entry: economic profits tend to be eliminated in the long run**DOWNWARD sloping of demand curve TERM 53
DEFINITION 53 physical differentprestige (name brand)locationservice TERM 54
DEFINITION 54 market structure in which relttively few firms control all or most of the production and sale of the product TERM 55
DEFINITION 55 products may be homogeneous or differentiated; barriers to entry are often high and economies of scale high; making unprofitable; mutual interdependence- when a firm shapes its policy with an eye to the policies of competing firms
confess, both will be worse off than if each had remained silentconflict between group and individual rationality; cooperation is difficult TERM 62
DEFINITION 62 TC= TFC+TVCATC= TC/QAFC=TFC/QAVC=TVC/QTVC=TV- TFCMC= SUBTRACTING THE TC COLUMNPROFIT=TR- TCTR=PxQ
