This site is 100% ad supported. Please add an exception to adblock for this site.

econ 101 bitch


undefined, object
copy deck
transforming inputs int outputs
the using up of production to satisfy human wants
five factors of production
captial, land, labour tecnology, entrepenurship
trangible commodity
intangible commodity
Free good
ulmimited supply
Oportunity Cost
the value of the forgone of the next best alternative
production possiblity curve
shows all possible combinations of production if all inputs are fully employed at normal utilizationr ate given income and prices of inputs
comparative advantage in ppc
inputs used first assume the msot efficient factors used first adn the msot inefieicnet resoruces are swithced otu fist
law of increasing marginal oportunity cost
the OC of X increases as the production of X increases, to make more X one must give up even more Y
for key economic problems for any economy
production- what is proeduced and by whom consumption what is consumped and by whom,, disntribution fo income
idel capacity, why is the economy below ppc, increase productive capaicty, how to shift ppc outward.
specialization principle
specialization of labour requires trade and markets
specialization of labour
worker focuses on producing certain commodity
division of labour
worker does part of the production process
caused by advancements in transporation and communication increaes net GD
allocation and distribution based on custom, effective in an unchanging enviroment eg fuedal system
allocationa dn distiribution by central planning authoirty
allocation and distribution by private houshold and firm, free makret enterprise economy, have difficulties with externatlites, public godos and monoplies
walls come tumbling down
failure of cordination fialure of quality control misplaced incentives enviromental degredation.
freedom of contract
in traditional economies seller could not refuse to sell
private property
fuedal times no private property
statement about what is, often testable by appeal to facts, my professor is funny
a statment about what ought to be, value judgment,not testable, your professor should improve his jokes
conditions of aapplciation
constrains on a theory
1) a theory 2) qauntitve formulation of a theory
refutation test
proper way to test a theory is to determine if it can be refuted by evidence
confirmation test
yeilds inconclusive resutls by looking for evidence taht confimrs hyptohessis.
index number
absolute value of of period n / absolute value of vase period
frow varaible
a varible over a over a certian time period
stock varible
point in time
ceteris paribus varibles for demand
income tastes advertising price of outher goods population wealth expecations
used jointly balla nd bat, +
used alternativly -
demand Curve
the entire realtionship between p and Q the onsumer is willing to purchas ceteris paribus
ceterus paribus varibles, supply
tecnoogy prices of inputs taxes subsidies price of relatied goods (substitution and complement) number of supplies expecations
absolute price
in terms of money
relative price
in terms anouther good , the ratio of absolute prices
close subsitutes
poor substitutes
time period
elasticiy increases over time
elasticity depends on perception of necessity
p rises consumer juts cuts bak adn does without consumer doens need the good luxury
determinates of elasticity of supply
affected by the availbility of subsitues of inputs , the more better subsitues of factors the higher E , factors of prodution are interchangable elasticity goes up
postive ealsticiy greater than 1
postive elasticy less than on e
negative elsticiy
general equilibruim
changes in one market effect all outher markets
parital equibruim
analysis of a market in isolation assumign no affect on other markets , usefull when market is relativly small, less feedback effets
price floors
minimuy price below which price annot fall, effet excess supply winners, some producers, who are luckey enough to sell for more consumers who could have bought more for less
price ceilings
maximum prive above which the price cannot go effect of ,excess demand winners, some consumers who get a lower price losers who could of sold for more
methods allocating short supply
black market first come first serve sellers prefecnces rationing g prefecnes
short run rent controls
initaly supply is ineasltic,
long run rent controls
become elastic, housing shorage.
demand (surplus sit)
maiximum price consumer willign to pay
supply (surplus sit)
minum price producer i willign to except.
economic surplus
cooperative surpulus total surplus, value venifit minus cost, for each unti the area below the demand curve and above the supply curve
problems with acricutlures
short term, variation in farmers income long term, droppign income
logn term trends
increasing domestic supply, slighly increasing domestic doeman decrasing exprot dmeand.
domestic farm markets
cuases farm prices to fluctuate inelastic demand
world markests
fixed price, income varies as a product of supply
stabalize quanity
stockpile when excess dump when shortage
stablize price
gaurenteed price pay teh differnce.
Demand for canadain dollars
demand for canadian exports investment in canada
supply of candain dollars
demand for forein currency canadain investment overseas.

Deck Info