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Details Title: EA-202 Microecinomics Description: Study Study Total Flash Cards: 24 Created: 12/09/2006 14:02:34	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term What is economics? Definition The study of how people choose to use thier limited resourses to produce, exchange, and consume goods and services. Term Scarcity Definition when society needs exceed the ability of the the economy to meet these needs Term Choice & Scarcity Definition go hand in hand because od scarcity choices must be made Term Positive ecinomics Definition study of what is in the economy Term Normativ ecinomics Definition Study of what ought to be the economy Term Economic goals Definition High level of employment Price Stability Effidicy Equal distrobution of income Growth reduction of polution,economic freedom,economic security Term Input Definition factor any item put into the production process Term Output Definition the product Term Resources Definition land,labor,capital,managment Term Maket system Definition determins the allocation of scarce resources Term PPC(product posability curve) Definition represents possible combanation of two products based on availible resources affected by Phyisical resorces,skills and tech,wllingnes to work,investment Term DEmand curve Definition illistation of how the quantity demanded will change as the price changes affected by cchange in price of related goods,change in consumer income,change in consumer tastes,change in population Term Supply Curve Definition illistation of the quantity supplyed change as price changes affected by,change of price of goods used to produce the product,change in tech,change in number of sellers Term Utility Definition the satifaction the people enjoy from consuming goods and services Term Marginal utility Definition the increese in satifaction when the consumption of that item is increesed by one unit Term Law of diminishing Marginal utility Definition as more goods are consumed of a givin period of time its utily will decreese Term Total utility Definition largest sum of money the consumer is willing to spend Term indiffrence map Definition reflects desires but behavior dependson abilty to buy that depeond and the individuals income Term Elacticity of demand Definition measure the responsive neess to the supply and demand curve Term posative cross price elacticity Definition incresse in prices of one will cause an incresse in demand for the other product Term Product function Definition tells how much output can be produced froma givin combanation of inputs Term TPP total physical product Definition quantity of output produced and the quantity of one of the inputs is changed Term Law of diminishing returns Definition as more of a variable input is combined with fixed inputs,eventually the marginal physical product of the variable input will decline Term laissez faire Definition no goverment interferance