Econ 5133- CH 1 - Assignment Essays

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opportunity cost

answer

is the cost as measured by the next best alternative given up when a choice is made.

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Managerial or Incremental approach

answer

involves analyzing changes associated with a decision based on the difference between the changes in benefits and the changes in costs.

question

The principle-agent problem

answer

occurs when one party acts on behalf of another in a situation where the parties may have conflicting goals

question

Macroeconomics

answer

the branch of economic analysis that deals with aggregate economic variables such as the economy's total output, central government spending and tax policy, and money supply and interest rates

question

Microeconomics

answer

is the study of individual economic units such as consumers, business firms, or specific government agencies.

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The Law of Demand

answer

the proposition that price and quanity demanded can be exoected to be inversely related, so that consumers will be willing and able to buy more of a good at lower prices than they are at higher prices.

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A change in quantity demanded

answer

____ is a movement along a given good's demand curve when the price of that good changes but other variables do not.

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Demand Function

answer

____ relates the amounts of a good that consumers are willing and able to buy to its own price and other relevant variable such as income or the prices of other goods.

question

Determinants of Demand

answer

are the variables other than a good's own price that are in its demand function. A change in one of them will shift the demand curve for a good.

question

A Change in Demand

answer

____ is a shift in the demand curve that occurs when a variable other than the good's own price changes.

question

Quantity supplied

answer

________of a good or service is the amount that producers will make available for purchase at a particular price along a supply curve.

question

Perfect Competition

answer

_______ is the name for a market type that is characterized by many buyers and sellers, where each one believes it is not possible to affect market price by their own individual actions.

question

Equilibrium Price

answer

_______ is the prevailing market price when quantity demanded equals quantity supplied.

question

CEOs should focus on

answer

maximizing firm profits

question

A firm's managers are constrained by

answer

consumers, workers, & government

question

All private firms seek to

answer

maximize profits

question

Behavioral economics is the study of why people:

answer

chose not to optimize

question

Most Private firms seek to

answer

maximize profits

question

Profit is

answer

the difference between a firm's revenue and its costs

question

If a theory's predictions are incorrect

answer

then economists will likely reduce their confidence in the theory.

question

In a market

answer

the primary participants are consumers and firms

question

Microeconomics models are used to

answer

make predictions
evaluate production alternatives
explain real-life phenomena

question

managerial economics

answer

helps managers make decisions in the face of scarcity

question

Economics models are most often tested

answer

using data from the real world

1 of 24

question

opportunity cost

answer

is the cost as measured by the next best alternative given up when a choice is made.

question

Managerial or Incremental approach

answer

involves analyzing changes associated with a decision based on the difference between the changes in benefits and the changes in costs.

question

The principle-agent problem

answer

occurs when one party acts on behalf of another in a situation where the parties may have conflicting goals

question

Macroeconomics

answer

the branch of economic analysis that deals with aggregate economic variables such as the economy's total output, central government spending and tax policy, and money supply and interest rates

question

Microeconomics

answer

is the study of individual economic units such as consumers, business firms, or specific government agencies.

question

The Law of Demand

answer

question

A change in quantity demanded

answer

____ is a movement along a given good's demand curve when the price of that good changes but other variables do not.

question

Demand Function

answer

____ relates the amounts of a good that consumers are willing and able to buy to its own price and other relevant variable such as income or the prices of other goods.

question

Determinants of Demand

answer

are the variables other than a good's own price that are in its demand function. A change in one of them will shift the demand curve for a good.

question

A Change in Demand

answer

____ is a shift in the demand curve that occurs when a variable other than the good's own price changes.

question

Quantity supplied

answer

________of a good or service is the amount that producers will make available for purchase at a particular price along a supply curve.

question

Perfect Competition

answer

_______ is the name for a market type that is characterized by many buyers and sellers, where each one believes it is not possible to affect market price by their own individual actions.

question

Equilibrium Price

answer

_______ is the prevailing market price when quantity demanded equals quantity supplied.

question

CEOs should focus on

answer

maximizing firm profits

question

A firm's managers are constrained by

answer

consumers, workers, & government

question

All private firms seek to

answer

maximize profits

question

Behavioral economics is the study of why people:

answer

chose not to optimize

question

Most Private firms seek to

answer

maximize profits

question

Profit is

answer

the difference between a firm's revenue and its costs

question

If a theory's predictions are incorrect

answer

then economists will likely reduce their confidence in the theory.

question

In a market

answer

the primary participants are consumers and firms

question

Microeconomics models are used to

answer

make predictions
evaluate production alternatives
explain real-life phenomena

question

managerial economics

answer

helps managers make decisions in the face of scarcity

question

Economics models are most often tested

answer

using data from the real world

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