10/24 Robin and Marian Movie Relationships in the Movie o Robin and Marian Robin went to the crusades Heat between them What's in common besides sex? o Robin and Little John o Sheriff and Robin Worthy adversaries Leaves safe place to fight Sher
Ten Things to Know from Chapter 13
1. What is meant by market power? What does the elasticity of demand for a
good have to do with the potential for a firm to exercise market power over
An imperfectly competitive firms ability to raise price wi
Household choices in output markets: 1. How much of each product, or
output, to demand. 2. How much labor to supply. 3. How much to spend
today and how much to save for the future
Budget constraint: limits imposed on household choices by income,
Ten Things to Know from Chapter 5
What is an elasticity? In what terms does it measure the
responsiveness of one variable to another?
A general concept used to quantify the response in one variable when
another variable changes.
What does the price
Elasticity: general concept used to quantify response in one variable when another
Elasticity of A with respect to B= %change in A/%change in B
Price elasticity of demand: ratio of percentage of change in quantity demanded to
Eight Things to Know from Chapter 4
What two roles does the market system play in dealing with the problems of
scarcity? How do these roles differ?
Determines the allocation of resources among producers and the final mix of
outputs it also distributes
Ten More Things to Know from Chapter 3 PART 2
What is a supply schedule? What is a supply curve? How do Table 3.3 and
Figure 3.6 work?
Schedule-table showing how much of a product firms will sell at
alternative prices. Curve-graph illustrating how much of
Nine Things to Know from Chapter 3- PART 1
What roles do firms and households play in the economy? In what markets
do they interact? What do households provide to firms? What do firms
provide to households?
Firms exist to transform resources into goods an
Ten Things to Know from Chapter 2
1. What is scarcity? Why is economics important in a world of scarcity?
-lack of resources needed. Economics presents us with trade-offs and we
must make decision on what we keep, economics helps us see how to get the
Ten Things to Know from Chapter 1
1. What is economics?
-the study of how individuals and societies choose to use the scarce
resources that nature and previous generations have provided
2. What is microeconomics?
-the branch of economics that examines the
All individual and societies face scarcity: a situation in which unlimited wants exceed the limited
resources available to fulfill those wants.
Every choice has an opportunity cost: the highest-valued alternative (or the benefit of that alternat
Eight Things to Know from Chapter 14
1. What is an oligopoly? How is it different from perfect competition and
A form of industry (market) structure characterized by a few dominant
firms. Products may be homogenous or differentiated. Perfect
Ten Things to Know from Chapter 16
1. What is an externality? Why does the presence of externalities cause
marginal private cost (or benefit) and marginal social cost (or benefit) to
Externality exists when the actions or decisions of one person o
1. What two roles does the market system play in dealing with the problems of scarcity? How do these roles differ? Determines the allocation of resources among producers and the final mix of outputs it also distributes goods and services on the basis of w
1) The opportunity cost of buying the house will mean that she loses the 4% interest, $8,000, and the $3,000 annual cost. The total value comes out to $11,000. If she chooses to rent then she loses $12,000 per year. Buying the house is a good deal fo
Chapter 1 Economics study of choices people make to attain their goals, given their scarce resources. Marginal Analysis analysis that involves comparing marginal benefits and marginal cost. Opportunity Cost the highest valued alternative that must
1. What is economics? Economics is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. It is the study of how people made choices. It is a behavioral science. 2. What is Microec
1. What is scarcity? Why is economics important in a world of scarcity? Scarcity human wants are unlimited but resources are not. Economics is important in a world of scarcity because its helps us choose what is to be produced and how much of it with our
1. What roles do firms and households play in the economy? In what markets do they interact? What do households provide to firms? What do firms provide to households? Firms exist when a person or group of people decides to produce a product or products by
Microeconomics Top 10 Chapter 6
1. What are the main characteristics of a perfectly competitive industry? See page 119. Composed of many firms, each one small relative to the size of the industry. Every firm produces exactly the same product, the ou
1. What is production? Who engages in production? Production is the process by which inputs are combined, transformed, and turned into outputs. Firms, households, and the government all engage in production. FirmsAutomobile plant uses steel, labor, plasti
1. What are fixed costs? What is average fixed cost? How do they vary in response to changes in the level of output? Understand Figure 8.2. Fixed costs are any cost that does not depend on the firm's level of output. These costs are incurred even if the f
Microeconomics Top 10 Chapter 9
1. How can you determine a competitive firm's profits or losses from its price and average total cost? You should be able to do this both numerically and graphically, as in Table 9.1 and Figure 9.1. Because we define
1. How would a general equilibrium analysis of a change in the economy differ from a partial equilibrium analysis? General equilibrium is the condition that exists when all markets in an economy are in simultaneous equilibrium. Partial equilibrium analysi
Microeconomics Top 10 Chapter 13
1. What is meant by market power? What does the elasticity of demand for a good have to do with the potential for a firm to exercise market power over its sales? Market power is an imperfectly competitive firm's abil