ECON: Microeconomics - Assignment Essays %

question

Households

answer

Sell factors of production and consumer goods and services

question

Firms

answer

Sell goods and services and consume factors of production

question

Law of Supply

answer

As price increases quantity supplied increases

question

Law of Demand

answer

As price increases quantity demanded decreases

question

Supply

answer

The # of goods or services a producer is willing to supply at each price

question

Demand

answer

The # of goods and services a consumer will demand at each price

question

Quantity Supplied

answer

The # of goods and services a producer is willing to sell at a given price

question

Quantity Demanded

answer

The # of goods and services a consumer will purchase at a given price

question

Equilibrium (Market Clearing Price)

answer

The price at which quantity supplied and quantity demanded meet

question

Determinants of Supply

answer

Production Cost, Technology, Education, Number of Sellers, Expectations for future prices, Government Regulations

question

Determinants of Demand

answer

Income of Buyers, Prices of Substitutes, Price of Compliments, Taste or Preference, Future Expectations

question

Price Floor

answer

minimum price instituted so that price does not fall to equilibrium

question

Price Ceiling

answer

maximum price instituted so that price does not reach equilibrium.

question

Subsidy

answer

Government payment to a person or entity to assist in the production or attainment of a good or service

question

Supply Shifts Left

answer

The cost of coffee beans goes up, raising the cost to produce a cup of coffee at Starbucks.

question

Supply Shifts Right

answer

A new pizza oven at Johnny's cooks pizza's twice as quickly as a previous model.

question

Demand Shifts Left

answer

A recent newspaper article links Sprite and brain cancer, affecting consumers desire for Sprite

question

Demand Shifts Right

answer

The price of golf clubs drops significantly, affecting consumers desire to buy golf clubs.

question

Factor Market

answer

Where labor is sold to firms in exchange for wages

question

Product Market

answer

Where goods and services are sold to house holds in exchange for revenue.

question

Market Structures

answer

4 major frameworks for how firms operate and compete given certain conditions. Oligopoly, Monopolistic Competition, Perfect Competition and Monopoly

question

Monopoly

answer

known as a "price maker" this market has one seller who controls all, or the vast majority, of an industry

question

Monopolistic Competition

answer

this type of market is characterized by having many large firms that follow price leadership and differentiate similar products by marketing them in creative ways

question

Perfect Competition

answer

This market has sellers who are known as "price takers" and is characterized by many small sellers who sell identical products.

question

Oligopoly

answer

This market has a few large firms who control the majority of the market and sell similar products. These firms often pose the risk of collusion, and pose a danger to consumers if they stop competing

question

Collusion

answer

An agreement among sellers to stop competing and set similar prices, thus setting a "market price".Considered bad for consumers.

question

Barriers to Entry

answer

Obstacles which prohibit a new firm from entering a market.

question

Surplus

answer

When quantity supplied (Qs) exceeds quantity demanded (Qd)

question

Shortage

answer

When quantity demanded (Qd) exceeds quantity supplied (Qs)

question

Elastic Goods

answer

goods and services that have demand change based upon the price charged.

question

Inelastic Goods

answer

Goods which will be consistently demanded no matter the price

question

Sole Proprietorship

answer

Business Organization that is easy to start up and enjoys ease of decision making, however also suffers from difficulty or raising money and unlimited liability

question

Business Organization

answer

Different strategies for how the ownership and liability of companies can be set up

question

Partnership

answer

Business organization that enjoys ease of start up and easy decision along with shared liability. But also has a limited lifetime and limitations in raising capital.

question

Corporation

answer

Business organization which enjoys limited liability, ease of raising money and an unlimited lifetime. But also suffers from double taxation.

question

Liability

answer

Responsibility

question

Interdependence

answer

Two or more entities that are reliant upon one another, or have a direct relationship.

question

Functions of Money

answer

Store of Value, Medium of Exchange, Unit of Accounting

1 of 38

question

Households

answer

Sell factors of production and consumer goods and services

question

Firms

answer

Sell goods and services and consume factors of production

question

Law of Supply

answer

As price increases quantity supplied increases

question

Law of Demand

answer

As price increases quantity demanded decreases

question

Supply

answer

The # of goods or services a producer is willing to supply at each price

question

Demand

answer

The # of goods and services a consumer will demand at each price

question

Quantity Supplied

answer

The # of goods and services a producer is willing to sell at a given price

question

Quantity Demanded

answer

The # of goods and services a consumer will purchase at a given price

question

Equilibrium (Market Clearing Price)

answer

The price at which quantity supplied and quantity demanded meet

question

Determinants of Supply

answer

Production Cost, Technology, Education, Number of Sellers, Expectations for future prices, Government Regulations

question

Determinants of Demand

answer

Income of Buyers, Prices of Substitutes, Price of Compliments, Taste or Preference, Future Expectations

question

Price Floor

answer

minimum price instituted so that price does not fall to equilibrium

question

Price Ceiling

answer

maximum price instituted so that price does not reach equilibrium.

question

Subsidy

answer

Government payment to a person or entity to assist in the production or attainment of a good or service

question

Supply Shifts Left

answer

The cost of coffee beans goes up, raising the cost to produce a cup of coffee at Starbucks.

question

Supply Shifts Right

answer

A new pizza oven at Johnny's cooks pizza's twice as quickly as a previous model.

question

Demand Shifts Left

answer

A recent newspaper article links Sprite and brain cancer, affecting consumers desire for Sprite

question

Demand Shifts Right

answer

The price of golf clubs drops significantly, affecting consumers desire to buy golf clubs.

question

Factor Market

answer

Where labor is sold to firms in exchange for wages

question

Product Market

answer

Where goods and services are sold to house holds in exchange for revenue.

question

Market Structures

answer

4 major frameworks for how firms operate and compete given certain conditions. Oligopoly, Monopolistic Competition, Perfect Competition and Monopoly

question

Monopoly

answer

known as a "price maker" this market has one seller who controls all, or the vast majority, of an industry

question

Monopolistic Competition

answer

this type of market is characterized by having many large firms that follow price leadership and differentiate similar products by marketing them in creative ways

question

Perfect Competition

answer

This market has sellers who are known as "price takers" and is characterized by many small sellers who sell identical products.

question

Oligopoly

answer

This market has a few large firms who control the majority of the market and sell similar products. These firms often pose the risk of collusion, and pose a danger to consumers if they stop competing

question

Collusion

answer

An agreement among sellers to stop competing and set similar prices, thus setting a "market price".Considered bad for consumers.

question

Barriers to Entry

answer

Obstacles which prohibit a new firm from entering a market.

question

Surplus

answer

When quantity supplied (Qs) exceeds quantity demanded (Qd)

question

Shortage

answer

When quantity demanded (Qd) exceeds quantity supplied (Qs)

question

Elastic Goods

answer

goods and services that have demand change based upon the price charged.

question

Inelastic Goods

answer

Goods which will be consistently demanded no matter the price

question

Sole Proprietorship

answer

Business Organization that is easy to start up and enjoys ease of decision making, however also suffers from difficulty or raising money and unlimited liability

question

Business Organization

answer

Different strategies for how the ownership and liability of companies can be set up

question

Partnership

answer

Business organization that enjoys ease of start up and easy decision along with shared liability. But also has a limited lifetime and limitations in raising capital.

question

Corporation

answer

Business organization which enjoys limited liability, ease of raising money and an unlimited lifetime. But also suffers from double taxation.

question

Liability

answer

Responsibility

question

Interdependence

answer

Two or more entities that are reliant upon one another, or have a direct relationship.

question

Functions of Money

answer

Store of Value, Medium of Exchange, Unit of Accounting

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