Karteikarten
Teacher Notes 100A
Karten in diesem Stapel (30)
- 1What is economicsEconomics is the study of scarce resources and the choices we make with the options we have based on the opportunity costs
- 2Why is there ScarcityOur wants are > than our resources
- 3Opportunity CostThe forgone value of the next best alternative
- 4What does Oppo cost help us determineWhat
whom
How - 5Comparative AdvantageWho has the lower opportunity cost
(You lose out on less on making more goods because you're infrastructure for the other product isn' t there so you can make more without losing much of the forgone value of the next best alternative.) - 6What are resourcesThings we used in production.
1. Land
2. Labor
3. Natural Resources - 7Land Utilization Resources vs. IntelligenceResources can make a country rich but since you can sell one good you will focus in industry and not the people. They become economically weak. A country with little resources can use intelligence and make a strong economy. You need intelligence to make the most of resources
- 8Resources - LaborPeople that are used to produce a certain product. Labor also has migration patterns and other factors affect it.
- 9Technology (economic term)Way we put things together and mostly shows up as capital goods
- 10CapitalGoods or Service that helps produce more goods or services
- 11What are the assumptions of S/D1. Even distribution Information
2. Identical Goods or Services
3. We only look at S/D curves of one market
4. Many producers and seller
(Not many markets meet all assumps) - 12What are the three allocation mechanisms for resources1. Markets
2. Command
3. Mixed - 13Allocation Mech - MarketA market is where buyers and sellers can meet at a certain time and place to transfer exclusive and transferable rights of goods.
- 14What is a Spot MarketIt's a market where buyers and sellers can exchange goods on the spot so you buy at the price or not. No personal connection
Ex. Stock Market - 15LiquidityThe ability to turn assets into cash without loss
- 16Allocation Mech - CommandA third party (like the Fed) can make decisions and own most resources. They can make decisions for the collective good or self-interest.
ex. USSR - 17SustainabilityWe have to look at if what we're doing is sustainable socially and for business, we look at static allocation vs. dynamic allocation which looks into the future
- 18Exogenous ShockA variable that is determined outside the system. (Demand and Supplier Shifter in terms of supply and demand)
- 19Endogenous ShockA variable determined within the system. (Ex. would be price in quantity when we look at D/S model)
- 20What does exogenous variables do to endogenous variablesAn exogenous variable will affect our endogenous variable.
Ex. when drought occurs supply will decrease changing how much we want, or the quantity demanded. - 21What are demand shifters (Exogenous Shocks)1. Taste and Preference
2. Income
3. Prices of Other goods
4. Number of Consumers - 22What are Supply Shifter (Exogenous Shocks)1. Costs of factors of production
2. Number of Sellers
3. Sellers outside options - 23Why is the Demand curve sloping downward (What is the assumption)Becuase of the Law of diminishing marginal return. When you get another unit of good the amount of utility you receive is less.
- 24Why is the Supply curve slope positive (What is the assumption)Becuase there looking for more profits but they face the law of increasing marginal cost of production. As they produce more it cost more so they have to charge more to get more profit.
- 25Exogenous Shocks on Demand - Price of other goodsSubstitutes
When price increases for one good the demand for another good increase. V.V.
Complement
When the price of one good increases the demand for another falls. (ex.) Things bought together (hot dogs and buns) - 26Exogenous Shocks on Demand - IncomeNormal Good
When income rises demand for normal goods rise
Inferior Goods
When income rises demand for inferior goods decrease - 27What do this mean. (P; pf, R, T)The P is price and it will be affected by the exogenous shocks like price of factor of production, resources and tech
- 28Exogenous Shock - Price of Factors of ProductionWhen the price of FoP increases supply will decrease. V.V.
- 29Comparative StaticsComparing two different equilibrium positions
- 30Steps for Comparative statics1. Observe the exogenous shocks
2. Which curve is affected
3. Which direction
4. Observe the endogenous shock
Informationen
- Beschreibung
- UC B MICROECON 100a
- Erstellt von
- Omo Mora · Jun 2017
- Aktualisiert
- 6 Apr 2018
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- 16
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