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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Def Opportunity Costs
The cost of the best alternative that we forgo, or give up, when we make a choice or a decision
Def Marginalism
The process of analysing the additional or incremental costs or benefits arising from a choice or decision
Def Efficient Markets
A market in which profit opportunities are eliminated almost instantaneously
Two Types of Needs
material things and services versus immaterial things
two types of goods
consumer goods versus capital goods
opposite scarce goods
free goods
what information does the price of a scarce good give?
level of scarcity
two types of prices?
nominal price versus real price
what is a real price?
adjusted for inflation
how do you measure a real price?
by CPI or PPI
Formula Real price 2014 in 1985 prices
CPI 1985 / CPI 2014 * nominal price in 2014
Formula Percentage change in real price 2014 & 1985
real price in 2014 - real price in 1985 / real price in 1985
Markets are a place... (3)
... where buyers and sellers of certain goods meet ... where a price for the goods is determined through their interactions ... that might be physical or virtual
characteristics perfectly competitive market
many buyers and sellers
no single buyer or seller has impact on price
characteristics of non-competitive markets
even if many producers
firms jointly affect price
why is market definition important? (2)
actual and potential competitors must be found . public policy decisions
Def Market Price
price prevailing in a competitive market
what can happen to the market price in not perfectly competitive markets?
different prices for the same products can be charged by different providers
fluctuation of market prices
market prices fluctuate over time especially in competitive markets
Def Economics
the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided
def normative analysis
an approach to economics that analyses outcomes of economic behaviour, evaluates them as good or bad, and may prescribe courses of action
Question Normative analysis
what ought to be?
question positive analysis
how do things work?
def positive analysis
an approach to economics that seeks to understand behaviour and the operation of systems without making judgements. It describes what exists and how it works
def model
a formal statement of a theory, usually a mathematical statement of a presumed relationship between 2 or more variables
what are the perks of models
explain and understand reality, predict future developments and support decisions
def variable
a measure that can change from time to time or from observation to observation
ockham's razor
irrelevant data should be cut away
ceteris paribus
other variables remain unchanged
post hoc, ergo propter hoc
if event a happens before event b, it is not necessarily true that a caused b
fallacy of composition
what is true for a part is not necessarily true for the whole
empirical economics
collection and use of data to test economic theories
important models (5)
ockham's razor
ceteris paribus
posthoc, ergo propter hoc
fallacy of composition
empirical economics
3 ?s of scarcity
what gets produced
how is it produced
who gets what is produced
def absolute advantage
a producer has an absolute advantage over another in the production of a good or service if he or she can produce that product using fewer resources (lower absoulte cost per unit)
def comparative advantage
a producer has a comparative advantage over another in the production of a good or service if he or she can produce that product at a lower opportunity cost
Gains from trade
Specialisation yields higher outputs if they cooperate. This is the value of free trade
def Production Possibility Frontier
the ppf is a graph that shows all the combinations of goods and services that can be produced if all of the society's resources are being used efficiently
def Efficient Economy
producing the goods and services that people want at least cost
de production efficiency
a given mix of outputs is produced at least costs
