Econ Final Exam- Shortened - Assignment Essays

question

Economics

answer

study of how scarce resources are used to satisfy unlimited want

question

Exogeneous/Independent Variable

answer

variables that come from outside the model

question

Endogenous/Dependent Variable

answer

variables that models are trying to explain

question

Production Possibilites Frontier (PPF)

answer

shows max combination of goods that can be produced within a given set of resources & given technology

question

Opportunity Cost

answer

highest valued alternative that is given up to get one additional unit of something

question

Absolute Advantage

answer

ability to produce a good using fewer resources

question

Comparative Advantage

answer

ability to produce a good at a lower opportunity cost

question

Demand

answer

the various quantities of a specific good consumers are willing & able to purchase at various prices

question

Law of Demand

answer

as the price of a good falls/rises, the qty consumers purchase rises/falls

question

Supply

answer

the various quantities of a specific good producers are willing and able to sell at various prices

question

Equilibrium

answer

a situation where there is no tendency for change

question

Thomas Malthus

answer

invented the law of diminishing marginal product

question

Law of Diminishing Marginal Product

answer

as increasing amounts of 1 input are added to fixed amounts of another, eventually increase in Q occurs at a decreasing rate

question

Production Function

answer

shows the amount of Q that can be produced with a given set of inputs & given technology

question

Total Product Curve

answer

graphical depiction of Production Function

question

Marginal Product

answer

change Q / change L
-shows the additional Q from using 1 more of variable input

question

Average Product

answer

Q / L
-shows the average amount produced by certain type of input

question

Variable Input

answer

an input whose usage can be altered

question

Fixed Input

answer

an input whose usage cannot be altered in the Short run

question

Implicit Costs

answer

non-monetary costs

question

Explicit Costs

answer

monetary costs

question

Short Run

answer

the period of time where at least one input is fixed

question

Long Run

answer

the period of time where all inputs are variable

question

Profits

answer

Total Revenues - Total Costs

question

Total Variable Costs

answer

costs of all variable inputs

question

Total Fixed Costs

answer

the cost of all fixed inputs

question

Total Costs

answer

TVC + TFC

question

Average Variable Costs

answer

what it costs, on average, in terms of variable inputs used to produce each unit of output

question

Average Fixed Costs

answer

what it costs, on average, in terms of fixed inputs used to produce each unit of output

question

Average Total Costs

answer

what it costs, on average to produce each unit of output

question

Marginal Costs

answer

the change in total costs from producing an additional unit

question

Marginal Revenue

answer

the change in total revenue from selling an additional unit

question

Total Revenue

answer

Price X Units sold

question

Perfect Competition

answer

many buyers & many sellers producing homogeneous product, free entry & exit

question

Price Taker

answer

buyers & sellers who have no ability through their actions to alter market price

question

Shut Down Point

answer

when the losses from producing = the losses from not producing for a firm

question

Firm's Supply Curve

answer

the MC above the min of the AVC

question

Long Run Average Cost Curve

answer

outside envelope of the ATC when all inputs usage is altered

question

Increasing Returns to Scale

answer

per unit costs decrease as the scale of operation increases

question

Constant Returns to Scale

answer

per unit costs are constant as the scale of operation increases

question

Decreasing Returns to Scale

answer

per unit costs increase as the scale of operation increases

question

Increasing Cost Competitive Industry

answer

comp industry where the LR supply is upward sloping

question

Constant Cost Competitive Industry

answer

comp industry where the LR supply is horizontal

question

Decreasing Cost Competitive Industry

answer

comp industry where the LR supply is downward sloping

question

Monopoly

answer

a single producer of a unique product

question

Monopolistic Competition

answer

multiple producers of slightly different products

1 of 46

question

Economics

answer

study of how scarce resources are used to satisfy unlimited want

question

Exogeneous/Independent Variable

answer

variables that come from outside the model

question

Endogenous/Dependent Variable

answer

variables that models are trying to explain

question

Production Possibilites Frontier (PPF)

answer

shows max combination of goods that can be produced within a given set of resources & given technology

question

Opportunity Cost

answer

highest valued alternative that is given up to get one additional unit of something

question

Absolute Advantage

answer

ability to produce a good using fewer resources

question

Comparative Advantage

answer

ability to produce a good at a lower opportunity cost

question

Demand

answer

the various quantities of a specific good consumers are willing & able to purchase at various prices

question

Law of Demand

answer

as the price of a good falls/rises, the qty consumers purchase rises/falls

question

Supply

answer

the various quantities of a specific good producers are willing and able to sell at various prices

question

Equilibrium

answer

a situation where there is no tendency for change

question

Thomas Malthus

answer

invented the law of diminishing marginal product

question

Law of Diminishing Marginal Product

answer

as increasing amounts of 1 input are added to fixed amounts of another, eventually increase in Q occurs at a decreasing rate

question

Production Function

answer

shows the amount of Q that can be produced with a given set of inputs & given technology

question

Total Product Curve

answer

graphical depiction of Production Function

question

Marginal Product

answer

change Q / change L
-shows the additional Q from using 1 more of variable input

question

Average Product

answer

Q / L
-shows the average amount produced by certain type of input

question

Variable Input

answer

an input whose usage can be altered

question

Fixed Input

answer

an input whose usage cannot be altered in the Short run

question

Implicit Costs

answer

non-monetary costs

question

Explicit Costs

answer

monetary costs

question

Short Run

answer

the period of time where at least one input is fixed

question

Long Run

answer

the period of time where all inputs are variable

question

Profits

answer

Total Revenues - Total Costs

question

Total Variable Costs

answer

costs of all variable inputs

question

Total Fixed Costs

answer

the cost of all fixed inputs

question

Total Costs

answer

TVC + TFC

question

Average Variable Costs

answer

what it costs, on average, in terms of variable inputs used to produce each unit of output

question

Average Fixed Costs

answer

what it costs, on average, in terms of fixed inputs used to produce each unit of output

question

Average Total Costs

answer

what it costs, on average to produce each unit of output

question

Marginal Costs

answer

the change in total costs from producing an additional unit

question

Marginal Revenue

answer

the change in total revenue from selling an additional unit

question

Total Revenue

answer

Price X Units sold

question

Perfect Competition

answer

many buyers & many sellers producing homogeneous product, free entry & exit

question

Price Taker

answer

buyers & sellers who have no ability through their actions to alter market price

question

Shut Down Point

answer

when the losses from producing = the losses from not producing for a firm

question

Firm's Supply Curve

answer

the MC above the min of the AVC

question

Long Run Average Cost Curve

answer

outside envelope of the ATC when all inputs usage is altered

question

Increasing Returns to Scale

answer

per unit costs decrease as the scale of operation increases

question

Constant Returns to Scale

answer

per unit costs are constant as the scale of operation increases

question

Decreasing Returns to Scale

answer

per unit costs increase as the scale of operation increases

question

Increasing Cost Competitive Industry

answer

comp industry where the LR supply is upward sloping

question

Constant Cost Competitive Industry

answer

comp industry where the LR supply is horizontal

question

Decreasing Cost Competitive Industry

answer

comp industry where the LR supply is downward sloping

question

Monopoly

answer

a single producer of a unique product

question

Monopolistic Competition

answer

multiple producers of slightly different products

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