Micro chapter 5-7 or smth like that

question

Price Elascticity of Demand

answer

Measure of demand sensitivity to price changes

question

price elasticity of supply

answer

a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price

question

elasticity ranges

answer

Elastic, Inelastic, perfectly inelastic or elastic

question

total revenue test

answer

a method of measuring elasticity by comparing total revenues

question

cross price elasticity

answer

the percentage change in the quantity of Product A demanded compared with the percentage change in price in Product B, substitute- pos complementary-neg

question

Income Elasticity

answer

sensitivity of demand for a product relative to changes in income, normal good pos, inferior good neg

question

As producers are given more time to respond to a price change, the elasticity of supply

answer

Increases

question

unit elasticity

answer

Up 10% and then down 10%

question

The law of diminishing marginal utility

answer

Increasing consumption leads to smaller additions to total utility

question

Utility

answer

Ability or capacity of a good or service to be useful and give satisfaction to someone.

question

marginal utility

answer

satisfaction or usefulness obtained from acquiring one more unit of a product

question

utility maximizing rule

answer

equating the ratio of the marginal utility of a good to its price for all goods

question

behavioral economics

answer

the study of situations in which people make choices that do not appear to be economically rational

question

explicit costs

answer

The actual payments a firm makes to its factors of production and other suppliers.

question

implicit costs

answer

Indirect, non-purchased, or opportunity costs of resources provided by the entrepreneur

question

normal profit

answer

the accounting profit earned when all resources earn their opportunity cost

question

economies of scale

answer

factors that cause a producer's average cost per unit to fall as output rises

question

diseconomies of scale

answer

the property whereby long-run average total cost rises as the quantity of output increases

question

constant returns to scale

answer

the property whereby long-run average total cost stays the same as the quantity of output changes

question

Water-Diamond Paradox

answer

Diamonds have a much higher price but a lower value than water. Water has a much higher value but a lower price than diamonds.

question

Marginal-utility-to-price-ratio

answer

Satisfaction per dollar spent that a consumer gets from a good

question

Why do people enjoy consumer surplus

answer

Pay less than they would have been willing to pay for a good

question

why are we unable to make interpersonal comparisons of utilities

answer

It's impossible to compare the satisfaction different people get from money

question

One of the requirements for success as an entrepreneur

answer

Access to funds to start the business

question

Committing to fixed costs often mean that an entrepreneur must

answer

Borrow to finance the purchase of plant and machinery

question

As output increases, average total cost and average variable cost approach the same value because

answer

Average fixed costs decrease as output increases

question

diseconomies of scale results in

answer

Problems managing a large firm

question

Average total cost decreases as long as marginal cost is

answer

Less than average total cost

question

fixed costs

answer

Costs that do not vary with the quantity of output produced

question

variable costs

answer

costs that vary with the quantity of output produced

1 of 30

question

Price Elascticity of Demand

answer

Measure of demand sensitivity to price changes

question

price elasticity of supply

answer

a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price

question

elasticity ranges

answer

Elastic, Inelastic, perfectly inelastic or elastic

question

total revenue test

answer

a method of measuring elasticity by comparing total revenues

question

cross price elasticity

answer

the percentage change in the quantity of Product A demanded compared with the percentage change in price in Product B, substitute- pos complementary-neg

question

Income Elasticity

answer

sensitivity of demand for a product relative to changes in income, normal good pos, inferior good neg

question

As producers are given more time to respond to a price change, the elasticity of supply

answer

Increases

question

unit elasticity

answer

Up 10% and then down 10%

question

The law of diminishing marginal utility

answer

Increasing consumption leads to smaller additions to total utility

question

Utility

answer

Ability or capacity of a good or service to be useful and give satisfaction to someone.

question

marginal utility

answer

satisfaction or usefulness obtained from acquiring one more unit of a product

question

utility maximizing rule

answer

equating the ratio of the marginal utility of a good to its price for all goods

question

behavioral economics

answer

the study of situations in which people make choices that do not appear to be economically rational

question

explicit costs

answer

The actual payments a firm makes to its factors of production and other suppliers.

question

implicit costs

answer

Indirect, non-purchased, or opportunity costs of resources provided by the entrepreneur

question

normal profit

answer

the accounting profit earned when all resources earn their opportunity cost

question

economies of scale

answer

factors that cause a producer's average cost per unit to fall as output rises

question

diseconomies of scale

answer

the property whereby long-run average total cost rises as the quantity of output increases

question

constant returns to scale

answer

the property whereby long-run average total cost stays the same as the quantity of output changes

question

Water-Diamond Paradox

answer

Diamonds have a much higher price but a lower value than water. Water has a much higher value but a lower price than diamonds.

question

Marginal-utility-to-price-ratio

answer

Satisfaction per dollar spent that a consumer gets from a good

question

Why do people enjoy consumer surplus

answer

Pay less than they would have been willing to pay for a good

question

why are we unable to make interpersonal comparisons of utilities

answer

It's impossible to compare the satisfaction different people get from money

question

One of the requirements for success as an entrepreneur

answer

Access to funds to start the business

question

Committing to fixed costs often mean that an entrepreneur must

answer

Borrow to finance the purchase of plant and machinery

question

As output increases, average total cost and average variable cost approach the same value because

answer

Average fixed costs decrease as output increases

question

diseconomies of scale results in

answer

Problems managing a large firm

question

Average total cost decreases as long as marginal cost is

answer

Less than average total cost

question

fixed costs

answer

Costs that do not vary with the quantity of output produced

question

variable costs

answer

costs that vary with the quantity of output produced

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Micro chapter 5-7 or smth like that

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