In these you include banks, investment banks,
If in a country if it easy to barrow, people will
buy more, then companies will produce more,
then the standard of living will go up.
In order for consumers to buy, we barrow. If we
are able to ba
Market and Government
CONTROLS ON PRICES
Are usually enacted when policymakers believe the
market price is unfair to buyers or sellers.
Result in government-created price ceilings and floors.
A legal maximum on the price at which a good can
THEORY OF SUPPLY AND DEMAND
When Does Market Clear?
The price that balances quantity supplied and quantity
On a graph, it is the price at which the supply and
demand curves intersect.
The quantity supplied
THEORY OF DEMAND
Economics is enchanting science.
Its fundamental principles are so
simple that they can be written
down on a sheet of paper. Its
principles are so simple that
everyone can understand them.
Nonetheless, only few understand
THEORY OF SUPPLY
Quantity supplied is the amount of a good that
sellers are willing and able to sell.
Law of Supply
The law of supply states that, other things equal, the
quantity supplied of a good rises when the price of
the good rises.
March 28th 2017
Narconomics Podcast Essay
According to Wainwright, many people believe that if we drive out the price of the raw
ingredients, youll have a big impact on the finished product, and that is not the case at all
"I feel 50-60% work.- Are you counting
children? - I don't know are there children
in308million? Then yes i count children"
Most owned by private individuals, a few rich
Who does the work?
Most owned by private individuals, few rich
When you produce more than last year. Real
To improve on standard of living
What economic growth?
Is growth important?
Look at chicken!
Behavioral Economics (Neuroeconomics) (133)
Average worker in 1919 should have worked
160 minutes for a ch
Physical vs Social Science
- Positive Social = Economics
o Physics, chemistry, biology
o Study things/animals
o Political, economics, sociology
o Study people
Product of human action without hu
Change in QD vs Demand Shift
- Movement along the demand curve
- Shift to the right on a graph = more demand
o $10 for 5 units on left
o $20 for 5 units on right
What Causes Demand Shifts?
- Change in income
- Change in informatio
- Property Rights
- More is preferred to less
- Part of the Enlightenment
- Purposeful; use means to accomplish an end
- Individuals act
- You seek to optimize benets, and minimized costs
- You respond t
- Any way in which you have a relationship with other people, that can
serve as a means to obtaining other goals or other capital
- Can be used to substitute for human or physical capital
o Capital has many
Real vs Nominal Value
- Real Price
o Financial Price + Transaction Costs + Social Stigma
- Nominal Price
o Financial Price
o Dollar Price
- Ex. Firms, planned organizations, Business, mission states
- Humanly devised constraints that s
Apply basic supply and demand analysis
- Graphs Interpret conditions and draw correctly
- Shift curves trace changes in
o PSV + CSV
- Compare and contrast difering markets
- To study for this: Take 2x2 matrix and recreate 4 graphs
Post Midterm Key Terms
- Positive Externality
o Personal Marginal Benet
Willingness to pay
o P.M.B. (Private Marginal Benet)+ 3rd party = S.M.B. (Social Marginal
- Negative Externality
o Social Marginal Cost
- A response
Micro vs Macro Economics
- Science of individual decision making
- Formal institutions
o Firms, planned organizations, business, nation states
o Have rules and specic policies
o Feedback mechanism that contributes onto economic wealth of
Microeconomics Test 1 Study Guide (Fair Game)
- What is available for sale in the market
- What is required in the market, of an items supply
- Demand curves become more elastic over time
- In market equilibrium Prices = Qua
Chapter 1 Concepts Quiz:
Which of the following is an accurate description of the primary theme of microeconomics?
A set of constrained optimization problems.
All of these.
Studying how individuals and firms make themselve