Stapp Microeconomics Exam 1 - Assignment Essays %

question

Economics

answer

study of how mankind allocates its relatively scarce resources (CELL) to satisfy our unlimited/insatiable wants and demands - study of choice

question

Microeconomics

answer

Price Theory

question

How many items are sold at a Supercenter Walmart?

answer

175K

question

IBM

answer

International Business Machines

question

What to produce?

answer

Allocation

question

How to produce?

answer

Production

question

For whom to produce for?

answer

Distribution

question

Efficiency

answer

Maximum output for minimum input

question

Opportunity Cost

answer

Highest value alternative that must be given up to engage in an activity

question

real income =

answer

nominal income/price

question

Inferior Good

answer

When income goes up, you won't buy this product

question

Substitutes

answer

Two goods that perform the same goods or services

question

Complementary Goods

answer

To have one good, you need to buy another

question

Economic Resources

answer

Capital, Entrepreneur, Land, Labor

question

3 Assumptions of Economics

answer

People are rational, people respond to economic incentives, people make decisions at the margin

question

Shifters of Demand

answer

Prices of related goods, Income, Number of buyers, Tastes and Preferences, Expectation of future prices

question

As price increases, quantity demanded

answer

Decreases

question

As price decreases, quantity demanded

answer

Increases

question

As income increases, demand

answer

Increases

question

As tastes and preferences increase, demand

answer

Increases

question

As the price for a substitute increases, demand

answer

Increases

question

As the price for a complement increases, demand

answer

Decreases

question

As the number of buyers increases, demand

answer

Increases

question

As the expectations of future prices increases, demand

answer

Increases

question

Equilibrium

answer

When price and quantity intersect, P=Q

question

Shifters of Supply

answer

Wages, Rent, Cost of production, Interest, Taxes, Number of sellers, Profit, Unfavorable weather

question

As wages increase, supply

answer

Decreases

question

As rent increases, supply

answer

Decreases

question

As costs of production increase, supply

answer

Decreases

question

As interest increases, supply

answer

Decreases

question

As taxes increase, supply

answer

Decreases

question

As the number of sellers decreases, supply

answer

Decreases

question

As profit increases, supply

answer

Decreases

question

Trading Triangle

answer

Spot to the left of the equilibrium where consumers and producers are both happy

question

S>D there is a

answer

Surplus

question

D>S there is a

answer

Shortage

question

Who likes a surplus?

answer

Consumer

question

Who likes a shortage?

answer

Producer

question

What is the only point consumers and producers can be in the Trading Triangle?

answer

Equilibrium

question

Consumer Surplus

answer

Difference between what you are willing to pay and what you do pay

question

Price discrimination

answer

Same product selling for less in one store compared to another

question

Producer Surplus

answer

Amount of money producer receives above what they had to sell something at

question

CS + PS =

answer

Market Surplus (MS)

question

Where is the largest movable item located?

answer

Oil rig in the North Sea

question

Where is Sam's Club?

answer

To the right of the origin

question

Where is Steve McQueen?

answer

Above the origin

question

Law of Demand

answer

As price increases, quantity demanded increases and vice versa

question

3 Economic Evils

answer

Inflation, unemployment, stagnation

question

Cost of Capital

answer

Interest

question

Cost of Entrepreneur

answer

Profit

question

Cost of Land

answer

Rent

question

Cost of Labor

answer

Wages

question

Phillips Curve

answer

Trade off between prices (inflation) and UE

question

Demand-pull Inflation

answer

When a lot of people want the same good, the price will increase

question

Cost-push Inflation

answer

As price of inputs increases, supply decreases

question

When is there transfer?

answer

Any time prices change

1 of 56

question

Economics

answer

study of how mankind allocates its relatively scarce resources (CELL) to satisfy our unlimited/insatiable wants and demands - study of choice

question

Microeconomics

answer

Price Theory

question

How many items are sold at a Supercenter Walmart?

answer

175K

question

IBM

answer

International Business Machines

question

What to produce?

answer

Allocation

question

How to produce?

answer

Production

question

For whom to produce for?

answer

Distribution

question

Efficiency

answer

Maximum output for minimum input

question

Opportunity Cost

answer

Highest value alternative that must be given up to engage in an activity

question

real income =

answer

nominal income/price

question

Inferior Good

answer

When income goes up, you won't buy this product

question

Substitutes

answer

Two goods that perform the same goods or services

question

Complementary Goods

answer

To have one good, you need to buy another

question

Economic Resources

answer

Capital, Entrepreneur, Land, Labor

question

3 Assumptions of Economics

answer

People are rational, people respond to economic incentives, people make decisions at the margin

question

Shifters of Demand

answer

Prices of related goods, Income, Number of buyers, Tastes and Preferences, Expectation of future prices

question

As price increases, quantity demanded

answer

Decreases

question

As price decreases, quantity demanded

answer

Increases

question

As income increases, demand

answer

Increases

question

As tastes and preferences increase, demand

answer

Increases

question

As the price for a substitute increases, demand

answer

Increases

question

As the price for a complement increases, demand

answer

Decreases

question

As the number of buyers increases, demand

answer

Increases

question

As the expectations of future prices increases, demand

answer

Increases

question

Equilibrium

answer

When price and quantity intersect, P=Q

question

Shifters of Supply

answer

Wages, Rent, Cost of production, Interest, Taxes, Number of sellers, Profit, Unfavorable weather

question

As wages increase, supply

answer

Decreases

question

As rent increases, supply

answer

Decreases

question

As costs of production increase, supply

answer

Decreases

question

As interest increases, supply

answer

Decreases

question

As taxes increase, supply

answer

Decreases

question

As the number of sellers decreases, supply

answer

Decreases

question

As profit increases, supply

answer

Decreases

question

Trading Triangle

answer

Spot to the left of the equilibrium where consumers and producers are both happy

question

S>D there is a

answer

Surplus

question

D>S there is a

answer

Shortage

question

Who likes a surplus?

answer

Consumer

question

Who likes a shortage?

answer

Producer

question

What is the only point consumers and producers can be in the Trading Triangle?

answer

Equilibrium

question

Consumer Surplus

answer

Difference between what you are willing to pay and what you do pay

question

Price discrimination

answer

Same product selling for less in one store compared to another

question

Producer Surplus

answer

Amount of money producer receives above what they had to sell something at

question

CS + PS =

answer

Market Surplus (MS)

question

Where is the largest movable item located?

answer

Oil rig in the North Sea

question

Where is Sam's Club?

answer

To the right of the origin

question

Where is Steve McQueen?

answer

Above the origin

question

Law of Demand

answer

As price increases, quantity demanded increases and vice versa

question

3 Economic Evils

answer

Inflation, unemployment, stagnation

question

Cost of Capital

answer

Interest

question

Cost of Entrepreneur

answer

Profit

question

Cost of Land

answer

Rent

question

Cost of Labor

answer

Wages

question

Phillips Curve

answer

Trade off between prices (inflation) and UE

question

Demand-pull Inflation

answer

When a lot of people want the same good, the price will increase

question

Cost-push Inflation

answer

As price of inputs increases, supply decreases

question

When is there transfer?

answer

Any time prices change

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