Individual decision-making units in a free market economy - ANSWER Microeconomics
Aggregate behaviour at national and international level - ANSWER Macroeconomics
how business raise and spend capital - ANSWER Finance
As cost falls, same quantity for cheaper price, or more quantity for same price. Shifts to right
- ANSWER What effect does production cost have on supply curve
Curve shift vs. movement along curve - ANSWER Change in supply Vs. Change in the
quantity supplied
As income rises, quantity increases. Shifts to right - ANSWER What effect does income
have on demand curve
Increase in price on one article leads to increased demand of other article -
ANSWER What is a substitute
Increase in the price of one article leads to decrease in quantity demanded for other -
ANSWER What is a complement
Underneath - ANSWER Where is the shortage on a D vs. S graph?
1
, Consumer will buy at one singular price only (an infinite quantity) - ANSWER What is
Infinitely Elastic Demand
Fixed quantity of good regardless of price - ANSWER Completely inelastic demand
Gross revenue from sale (price times quantity) - ANSWER Total Consumer Expenditure
When Elasticity of demand is 1 (unitary elastic) - ANSWER When is TCE maximized?
The combination of all resources to produce a product - ANSWER What does the
production function represent?
Fixed = constant over range of output
Variable = increase with output - ANSWER Fixed Vs. Variable resources
Tangent line (first derivative) - ANSWER Where is the maximum Average Product
found
Inflection Line (second derivative) - ANSWER Where is the maximum Marginal Product
found
The marginal product - ANSWER What is the incremental product
Curve showing all possible combos of inputs that yield the same output -
ANSWER What is an isoquant
inflexion point - ANSWER Where is the minimum marginal cost found?
2
Aggregate behaviour at national and international level - ANSWER Macroeconomics
how business raise and spend capital - ANSWER Finance
As cost falls, same quantity for cheaper price, or more quantity for same price. Shifts to right
- ANSWER What effect does production cost have on supply curve
Curve shift vs. movement along curve - ANSWER Change in supply Vs. Change in the
quantity supplied
As income rises, quantity increases. Shifts to right - ANSWER What effect does income
have on demand curve
Increase in price on one article leads to increased demand of other article -
ANSWER What is a substitute
Increase in the price of one article leads to decrease in quantity demanded for other -
ANSWER What is a complement
Underneath - ANSWER Where is the shortage on a D vs. S graph?
1
, Consumer will buy at one singular price only (an infinite quantity) - ANSWER What is
Infinitely Elastic Demand
Fixed quantity of good regardless of price - ANSWER Completely inelastic demand
Gross revenue from sale (price times quantity) - ANSWER Total Consumer Expenditure
When Elasticity of demand is 1 (unitary elastic) - ANSWER When is TCE maximized?
The combination of all resources to produce a product - ANSWER What does the
production function represent?
Fixed = constant over range of output
Variable = increase with output - ANSWER Fixed Vs. Variable resources
Tangent line (first derivative) - ANSWER Where is the maximum Average Product
found
Inflection Line (second derivative) - ANSWER Where is the maximum Marginal Product
found
The marginal product - ANSWER What is the incremental product
Curve showing all possible combos of inputs that yield the same output -
ANSWER What is an isoquant
inflexion point - ANSWER Where is the minimum marginal cost found?
2
