Micro 3
microeconomics
microeconomics
Set of flashcards Details
| Flashcards | 121 |
|---|---|
| Language | English |
| Category | Macro-Economics |
| Level | University |
| Created / Updated | 19.04.2017 / 25.04.2017 |
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what is the "danger" of a price ceiling?
excess demand
what is the "danger" of a price floor?
excess supply
Name 4 alternative rationing mechanisms
which one is the least unfair rationing approach?
price rationiong
what is "the difference between the m aximum amount a person is willing to pay for a good an dits current market price" called?
consumer surplus
what is it called? " The differene between the current market price and the cost of production for the firm"?
producer surplus
what is the sum of consumer and producer surplus called?
total welfare
producer and consumer surplus is greatest where supply and demand vurces intersect at ...?
equilibrium
which market style maximises the sum of producer and consumer surplus
competitive markets
what is it called? "The total loss of producer and consumer surplus from underproduction or overproduction"
deadweight loss
what is it? "a general concept to quantify the response in one variable when another variable changes"
elasticity
name the 4 types of elasticities
what shall be done in order to make it comparable?
convert to percentages
demand in which quantity demanded does not respond at all to a change in price?
demand in which quantity drops to 0 at the slightest increase in price
How do you call it when: "Demand in which quantity demanded does not respond at all to a change in price
perfectly inelastic demand
how do you call it when "demand in which quantity drops to 0 at the slightest increase in price"?
perfectly elastic demand
Types of elasticity: what is 0?
inelastic demand
types of elasticity what is 1?
unitary demand
types of elasticity what is 1+
elastic demand
point elasticity DeltaQ : DeltaP is the ... of the slope
reciprocal
the percentage change in quantity demanded divided by the percentage change in price is called
elasticity
at the midpoint formula, elasticity changes along a ...
straight line demand curve
elastic demand ... is bigger and dominates
inelastic demand .. is bigger and dominates
name the determinants of demand elasticity
what is the expected relationship between long run and short run demand?
price rise
what is a measure of the responsiveness of demand to changes in income?
income elasticity of demand
what is a measure to response of the quantity of one good demanded to a change in the proce of another good?
cross price elasticity demand
what is measure to response of labour supplied to a change in the price of labour?
elasticity of labour supply
what is the measure of the respone of quantity of a good supplied to a change in price of that good?
elasticity of supplies
in output markets the elasticity of supply is likely to be...?
positive
name the three household choices
what is "the limits on household choices by income, wealth and product prices" called?
budget constraint
what is a set of options that is defined and limited by a budget constraint?
opportunity set
when the price of a good decreases, the budget constraint swivels to the...
right
when the budget constraint swivels to the right, it means that there are more...?
opportunities and choice
what is :"additional satisfaction gained by the consumption or use of one more unit"?
marginal utility
what is : "total amount of satisfaction obtained from consumption of a good or service"?
total utility
what is :"the more of any good consumed in a given period, the less satisfaction/utility generated by consuming each additional/marginal unit of the same good"?
law of diminishing marginal utility
