Term
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Definition
| A GROUP OF BUYERS AND SELLERS OF A PARTICULAR GOOD OR SERVICE (WHEAT) |
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Term
| CHARACTERISTICS OF A COMPETITIVE MARKET |
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Definition
| MANY BUYERS AND SELLERS SO THAT NO ONE HAS A SIGNIFICANT IMPACT |
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Term
| PERFECTLY COMPETITIVE MARKET |
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Definition
| MANY BUYERS AND SELLERS OF THE EXACT SAME GOOD |
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Term
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Definition
| a TABLE THAT SHOWS THE RELATIONSHIP BETWEEN THE PRICE OF A GOOD AND THE QT DEMANDED |
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Term
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Definition
| OTHER THINGS EQUAL THE QT DEMANDED OF THE GOOD FALLS AS THE PRICE RISES |
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Term
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Definition
| THE AMOUNT OF A GOOD THAT BUYERS ARE WILLING AND ABLE TO PURCHASE |
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Term
| CHANGES IN QT DEMANDED VS CHANGES IN DEMAND |
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Definition
A CHANGE IN DEMAND IS ANY CHANGE AFFECTING THE QT DEMANDED AT EVERY PRICE
(CHANGE IN TASTE, ETC |
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Term
| DETERMINANTS OF DEMAND OR DEMAND SHIFTERS |
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Definition
| INCOME, SUBSTITUTES, COMPLEMENTS, TASTES, EXPECTATIONS, NUMBER OF CONSUMERS |
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Term
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Definition
| IF THE DEMAND FALLS WHEN INCOME FALLS |
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Term
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Definition
| DEMAND INCREASES AS INCOME FALLS |
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Term
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Definition
| INCREASE IN THE COST OF ONE INCREASE DEMAND FOR OTHER |
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Term
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Definition
| INCREASE IN ONCE CAUSES A DECREASE IN THE OTHER |
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Term
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Definition
| THE AMOUNT OF A GOOD THAT A SELLER IS WILLING AND ABLE TO SELL |
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Term
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Definition
| QT SUPPLIED RISES WHEN THE PRICE OF THE GOOD RISES |
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Term
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Definition
| TABLE SHOWING THE RELATIONSHIP BETWEEN PRICE AND QT SUPPLIED |
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Term
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Definition
| A GRAPH OF THE RELATIONSHIP BETWEEN PRICE OF A GOOD AND THE QT SUPPLIED |
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Term
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Definition
| INPUT PRICES, TECHNOLOGY EXPECTATIONS NUMBER OF SELLERS |
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Term
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Definition
| PRICE THAT BALANCES QT SUPPLIED AND DEMANDED |
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Term
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Definition
| WHERE MARKET REACHES THE LEVEL AT WHICH QT SUPPLIED EQUALS QT DEMANDED |
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Term
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Definition
| THE CLAIM THAT THE PRICE OF ANY GOOD ADJUSTS TO BRING THE QT SUPPLIED AND THE QT DEMANDED INTO BALANCE |
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Term
| 3 STEPS TO ANALYZING CHANGES IN EQUILIBRIUM |
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Definition
| WHICH CURVE DOES IT SHIFT (BOTH?), TO THE RIGHT OF LEFT? LOOK AT THE SHIFT IN EQUILIBRIUM |
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Term
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Definition
| QT DEMANDED IS GREATER THAN QT SUPPLIED |
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Term
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Definition
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Term
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Definition
| A PERSON CAN BE PREVENTED FROM USING IT |
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Term
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Definition
| ONE PERSONS USE DIMINISHES ANOTHERS |
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Term
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Definition
| EXCLUDABLE AND RIVAL IN CONSUMPTION (ICE CREAM) |
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Term
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Definition
| NEITHER EXCLUDABLE OR RIVAL (FIRE SIREN, FIREWORKS) |
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Term
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Definition
| RIVAL IN CONSUMPTION BUT NOT EXCLUDABLE |
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Term
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Definition
| FIRE PROTECTION (EXCLUDABLE BUT NOT RIVAL IN CONSUMPTION |
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Term
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Definition
| NOONE OWNS IT SO EVERYONE TAKES WITHOUT DUE REGARD |
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Term
| IMPORTANT COMMON RESOURCE |
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Definition
| CLEAN AIR AND WATER, CONGESTED ROADS,FISH, WALES,ETC |
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Term
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Definition
| largest source ind income tax |
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Term
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Definition
| 1st. social security (transfer payment) 2nd national defense 3rd income security (TANF, food stanps, |
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Term
| state and local government |
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Definition
| sales tax and property tax. States and local collect about 40 of all taxes paid |
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Term
| state and local government spending |
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Definition
| education (largest) public welfare, highways, other (libraries police, fire, etc |
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Term
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Definition
| One that imposes small deadweight loss and small administrative burdens |
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Term
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Definition
| people should pay taxes based on the benefits they receive from government services (gasoline tax to benefit roads |
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Term
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Definition
| taxes should be levied on person according to how well the person can shoulder the burden |
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Term
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Definition
| taxpayers with a greater ability to pay should pay larger amounts |
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Term
| difference between horizontal equity and vertical equity |
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Definition
| taxpayers with similiar abilities should pay the same amount |
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Term
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Definition
| the amount a firm receives for the sale of it's output |
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Term
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Definition
| the market value of the inputs a firm uses in production |
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Term
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Definition
| total revenue minus total cost |
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Term
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Definition
| relationship between qt of inputs used to make a good and the qt of output of that good. (gets flatter due to diminishing marginal product) |
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Term
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Definition
| gets steeper as the amount produced rises. |
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Term
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Definition
| ushaped-bottom of the ushape is the efficient scale |
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Term
| What is the short run position of firms |
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Definition
| shut down if the revenue it would get from producing is less than it's variable costs of production |
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Term
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Definition
| will also save it's fixed costs by shutting down |
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Term
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Definition
| portion of its marginal cost curve that lies above e ATC |
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Term
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Definition
| at the end of the process firms that remain must be making zero economic profit |
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Term
| Characteristics of a Monopoly |
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Definition
| a firm that is the sole seller of a product without close substitutes |
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Term
| the fundamental cause of monopolies |
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Definition
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Term
| Normally a firm has trouble maintaining a monopolistic position without ownership of a key resource or protection from the government |
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Definition
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Term
| Attribute of the demand of a competitive frim |
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Definition
| horizontal, as they are price takers |
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Term
| attributes of the demand curve of a monopoly |
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Definition
| downward sloping. It has to accept a lower price if it wants to sell more |
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Term
| Marginal revenue for monopoly |
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Definition
| 2 effects, more sold and the price is lower |
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Term
| monopoly profit maximization |
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Definition
| point where marginal revenue equals marginal cost |
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Term
| How do we deal with monopolies in this country |
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Definition
| regulation, anti trust laws, public ownership (USPS), |
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Term
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Definition
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Term
| Examples of price discrimination |
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Definition
| movie tickets, airline tickets, discount coupons, financial aid, quantity discounts |
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Term
| Characteristics of Oligopoly |
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Definition
| Market where few sellers offer similiar or identical products |
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Term
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Definition
| economic participants interacting with one another each choose their best strategy given the strategies that all the others have chosen |
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Term
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Definition
| study of how people behave in strategic situations |
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Term
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Definition
| game between two captured prisoners that illustrates why cooperation is difficult to maintain, even when it is mutually beneficial. |
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Term
| What causes the supply of labor to shift |
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Definition
| when people change the amount the are willing to work at a given wage. Change in taste, change in alternative opportunity, immigration |
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Term
| how is the demand and supply of land and capital determined |
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Definition
| determined by the value of the marginal product of labor. |
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Term
| compensating differential |
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Definition
| a difference in wage that arises to offset the nonmonetary charactoristic of a different job,. |
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Term
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Definition
| the accumulation of investments in people, suchas as education and on the job training |
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Term
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Definition
| the offerning of different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal charactoristic |
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Term
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Definition
| transfers to the poor given in the form of goods and services, rather than cash (food stamps, housing, medicaid |
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Term
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Definition
| the regular pattern of income variation over a person's life |
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Term
| transitory versus permanent income |
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Definition
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Term
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Definition
| the claim that the government should aim to maximize the well-being of the worst-off person in society |
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Term
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Definition
| the claim that the government should aim to maximize the well-being of the worst-off person in society |
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Term
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Definition
| th epolitical philosophy according to which the government should punish crimes and enforce vountary agreements but not redistribute income |
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