Econ Unit 2 Test Review pt. 1

  1. Demand
    Desire, ability, and willingless to buy product
  2. Microeconomics
    Deals with behavior and decision making in SMALL UNITS (firms, individuals)
  3. Demand Schedule
    List that shows various quantities demanded of a particular product at all times
  4. Demand Curve
    Graph showing quantity demanded at each and every price
  5. Law of Demand
    states quantity demanded of a good/service varies inversely with its price
  6. Market Demand Curve
    Shows quantities demanded by everyone who is interested in purchasing product.
  7. Marginal Utility
    Extra usefulness or satisfaction a person gets from using one more unit of a product
  8. Diminishing Marginal Utility
    Extra satisfaction we get from using an additional quantities of a product begins to diminish
  9. Change in quantity demanded
    Movement alond demand curve that shows a chance in quantity of product purchased in response to change in price
  10. Substitutes
    Used in place of other products
  11. Complements
    Related good are complements. More use of other goods, equal more use of products
  12. Change in Demand
    People have changed their minds about the amount they would buy at every price. (Right to left on demand curve)
  13. Demand elasticity
    Extent to which a change in price causes a change in the quantity demanded
  14. Elastic
    Given change in price sauses larger change in quantity demanded
  15. Elasticity
    Measure of responsiveness that tells us how a dependant variable(quantity) responds to change in an independent variable(price)
  16. Unit Elastic
    Given change in price causes a proportional chance in quantity demanded
  17. Quantity Supplied
    Amount offered for sale at a given price
  18. Inelastic
    Given change in price causes a smaller change in quantity demanded
  19. Subsidy
    Government payment to an indivudual, business, or other group to encourage or protect a certain type of economic activity
  20. Supply Elasticity
    How change in quantity supplied responds to chance in price
  21. Change in Supply
    Change in quantity supplied. (Increase in supply = right) (Decrease in supply = left)
  22. Long run
    Period of production long enough for producers to adjust the quantities of all their resources including capital
  23. Diminishing returns
    Stage where output increases at diminishing rate as more unites of a variable input are added
  24. Theory of production
    Relationship between factors of production and output of goods and services
  25. Short run
    Period of production that allows producers to change only the amount of labor
Card Set
Econ Unit 2 Test Review pt. 1
econ unit 2 pt. 1