Microeconomics
vorbereitung klausur wintersemester 2016
vorbereitung klausur wintersemester 2016
Kartei Details
| Karten | 104 |
|---|---|
| Sprache | English |
| Kategorie | BWL |
| Stufe | Universität |
| Erstellt / Aktualisiert | 03.01.2017 / 01.01.2018 |
| Weblink |
https://card2brain.ch/box/20170103_microeconomics
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| Einbinden |
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on what do production costs depend on?
price or required input and technologies used for production
what happens if the price of a related product increases?
shift production away from another product or cause a higher production in another product
what causes a shift in supply curves?
new relationships between quantity supplied and price and changes in original conditions
what causes movements along supply curves?
change in price
def market equilibrium
the condition that exists when quantity supplied and quantity demanded are equal. at equilibrium there is no tendency for a price to change
def excess demand or shortage
the condition that exists when quantity demanded exceeds quantity supplied at the current price
def excess supply or surplus
the condition that exists when quantity supplied exceeds quantity demanded at the current price
what is the term for a condition that exists when quantity supplied exceeds quantity demanded at the current price?
surplus
what is the term for a condition in which quantity demanded exceeds quantity supplied at the current price?
shortage
when do changes in equilibrium appear?
when supply and demand curves shift
2 main functions of the price mechanism?
distributing scarce goods and services to consumers, allocation of resources among producers
def price rationing
the adjustment of price is the rationing mechanism in free markets. Price rationing means that whenever there is a need to ration a goods the price of the good will rise until quantity supplied equals quantity demanded
examples for market contraints
minimum wages and maximum price for rents
possible reasons for market constraints
income is unfairly distributed, some items are necessities, price is going bad
def market constraints
attempts to bypass price rationing in the market and to use alternative rationing devices are more difficult and more costly than they would seem at first glance
price ceiling / floor
can create excess demand
problem of minimum wage
leads to excess supply
problem with demand for wokers with minimum wage
demand will be minimised because the higher price leads to fewer jobs
alternative rationing mechanisms
queuing, favoured customers, ration coupons and black market
def consumer surplus
difference between the maximum amount a person is willing to pay for a good and its current market price
def producer surplus
the difference between the current market price and the cost of production for the firm
what is total welfare?
the sum of consumer and producer surplus
what maximises the sum of producer and consumer surplus?
competitive markets
def deadweight loss
the total loss of producer and consumer surplus from underproduction or overproduction
