- Study guides, Class notes & Summaries

Price-taking - correct answer Characteristic of producers and consumers who cannot benefit by offering or asking any price other than the market price in the equilibrium of a competitive market. They have no power to influence the market price. Competitive equilibrium - correct answer A market outcome in which all buyers and sellers are price-takers, and at the prevailing market price, the quantity supplied is equal to ...

-

2 pages

Written in 2024/2025

Grade A+

RealGrades

Willingness to Pay - correct answer An indicator of how much a person values a good, measured by the maximum amount he or she would pay to acquire a unit of the good. Willingness to Accept - correct answer The reservation price of a potential seller, who will be willing to sell a unit only for a price at least this high Reservation Price - correct answer The lowest price at which ...

-

3 pages

Written in 2024/2025

Grade A+

RealGrades

Three core choices that confront every nation (1) - correct answer WHAT to produce with our limited resources Three core choices that confront every nation (2) - correct answer HOW to produce the goods and services we select Three core choices that confront every nation (3) - correct answer FOR WHOM goods and services are produced- that is, who should get them Scarcity - correc...

-

3 pages

Written in 2024/2025

Grade A+

RealGrades

How are models used in economics? - correct answer • Building a model to capture the elements of the economy that he thought mattered for the determination of princes • Using the model to show how interactions between these elements could result in a set of prices that did not change • Conducting experiments with the model to discover the effects of changes in economic conditions Equilibrium - correct answer sit...

-

2 pages

Written in 2024/2025

Grade A+

RealGrades

Scarcity - correct answer A situation in which unlimited wants exceed the limited resources available to fulfill those wants Marginalism - correct answer the process of analyzing the additional or incremental costs or benefits arising from a choice or decision opportunity cost - correct answer the most desirable alternative given up as the result of a decision capital - correct...

-

11 pages

Written in 2024/2025

Grade A+

RealGrades

Abatement - correct answer Practices to limit or reverse environmental damages. Abatement policies - correct answer Policies designed to reduce (abate) environmental damages. Absolute advantage - correct answer A country has absolute advantage in the production of a good if the inputs it uses to produce this good are less than in some other country. Acyclical - correct answer ...

-

54 pages

Written in 2024/2025

Grade A+

RealGrades

market failure - correct answer When markets allocate resources in a Pareto-inefficient way. external effect - correct answer (Externality), A positive or negative effect of a production, consumption, or other economic decision on another person or people that is not specified as a benefit or liability in a contract. It is called an external effect because the effect in question is outside the contract. Also known as: e...

-

2 pages

Written in 2024/2025

Grade A+

RealGrades

Involuntary Unemployment - correct answer The state of being out of work, but preferring to have a job at the wages and working conditions that otherwise identical employed workers have Nominal Wage - correct answer The actual amount received in payment for work, in a particular currency. Employment Rent - correct answer The economic rent a worker receives when the net value of he...

-

3 pages

Written in 2024/2025

Grade A+

RealGrades

money - correct answer Money is something that facilitates exchange (called a medium of exchange) consisting of bank notes and bank deposits, or anything else that can be used to purchase goods and services, and is generally accepted by others as payment because others can use it for the same purpose. broad money - correct answer The stock of money in circulation, which is defined as the sum of bank money and the base m...

-

3 pages

Written in 2024/2025

Grade A+

RealGrades

Economics - correct answer The study of how people interact with each other, and with their natural surroundings, in providing their livelihoods, and how this changes over time. Industrial Revolution - correct answer A wave of technological advances starting in Britain in the 18th century, which transformed an agrarian and craft-based economy into a commercial and industrial economy. Technology - correct answer ...

-

7 pages

Written in 2024/2025

Grade A+

RealGrades

Scarcity - correct answer having seemingly unlimited human wants in a world of limited resources. We have insufficient productive resources to fulfill all human wants and needs Marginalism - correct answer a theory explaining the discrepancy in the value of goods and services by reference to their secondary, marginal, or utility. Opportunity Cost - correct answer the value or bene...

-

12 pages

Written in 2024/2025

Grade A+

RealGrades

game - correct answer A model of strategic interaction that describes the players, the feasible strategies, the information that the players have, and their payoffs. See also: game theory. best response - correct answer In game theory, the strategy that will give a player the highest payoff, given the strategies that the other players select. dominant strategy equilibrium - correct answer ...

-

2 pages

Written in 2024/2025

Grade A+

RealGrades

absolute advantage - correct answer A person or country has this in the production of a good if the inputs it uses to produce this good are less than in some other person or country. [18.4][1.8][KC18] acyclical - correct answer No tendency to move either in the same or opposite direction to aggregate output and employment over the business cycle. [16.3] adjustment gap - correct answer ...

-

12 pages

Written in 2024/2025

Grade A+

RealGrades