Chapter 13. Factor markets
The demand for labor is a derived demand because it depends on, or is derived from, the demand for the output
labor helps produce (demand for auto workers depends on demands for automobiles)
Competitive labor markets (the force
Profit or loss
The product market that I chose for this graph is shirts because they usually
sell for around 30 to 50 dollars
UNIT 2: Quiz 3 Study Guide
Directions: COMPLETE this STUDY GUIDE and submit it by webmail. Calculations require work using the GUESS Method to
be shown in order to receive credit.
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1. The tools of fiscal policy are taxing and spending. The goals of fiscal policy are to have money
for government programs.
2. Deficit is when you owe more money than you are bringing in while debt is just the money you
3. I chose by cutting spendin
Demand for Kate Spade Shoes
$50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00
Kate Spade heels generally attract a decent level of customers due to the
The fundamental of economic problem is scarcity: there are not enough resources to produce everything people
want and need. It also means that society faces tradeoffs when making choices about how to use resources
4 types of resources:
1. Land and
Chapter 18. Keynesian economics.
Viewpoints: without proper management by policy makers, the economy may follow the path of instability with frequent
and severe economic downturns.
Keynesian model: the new view that government can and should play an activ
Chapter 12. monopolistic competition and oligopoly
Firms in imperfectly competitive markets face downward-sloping demand curves, indicating that the individual
firm has some degree of market power, and the demand for an individual firms output is not the
Chapter 11. Monopoly
Market power: An imperfectly competitive industry is one in which a firm has some control over price.
A market is purely monopoly when there is a single seller of a unique product and barriers to entry exists.
A monopoly occurs when o
Chapter 10. Perfect Competition
In perfect competition: individual firms have no market power (price setting power), and the interaction of all
buyers and sellers in the market determine the price in which individual firms sells output
PC is the easiest m
Chapter 8. The firm: economic costs, profits and production,
CLASSIFING A FIRM
Legal organizations refers to the ownership of the firm and the legal structure under which the firm
A firm is an organization that transforms inputs into outputs fo
Chapter 7. Market failure and the role of Government.
Free market can promote an efficient allocation of resources in which the goods and services want are produced
at least cost. However, in reality, an efficient outcome may be prevented by market failur
Chapter 6 Efficiency
Two approaches to the study of consumer utility
Cardinal: based on the assumption that the amount of utility or satisfaction, which consumer receives
from a product can be measured consistently, using a unit of measure called a util