income, population tastes and preferences, future price expectations, prices of substitute goods
New cards
17
income
increase in buyers income allows consumers to purchase more
New cards
18
population
increased population increases demand
New cards
19
tastes and preferences
individual tastes and preferences influences demand
New cards
20
future price expectations
eg. price increase in future, demand increases now
New cards
21
price of substitute goods
substitute good B price increases, demand for A increases
New cards
22
complementary goods
2 goods that are bought and used together, influences demand of each other
New cards
23
increased supply
shifts supply curve right
New cards
24
decreased supply
shifts supply curve left
New cards
25
non price factors affecting supply
cost, number of sellers, technology, nature and environment, prices of related outputs
New cards
26
cost
changes in production costs affects quantities that suppliers are willing to supply, directly affecting profits
New cards
27
number of sellers
less sellers decreases market supplies if remaining sellers do not increase production
New cards
28
technology
decreases production costs, increases supply
New cards
29
nature and environment
environmental factors affect supply
New cards
30
prices of related outputs
if product A is more profitable than product B, decreased supply of B, increased supply of A
New cards
31
perfectly competitive market
1. many sellers, none of which can dominate the market. 2. many buyers, no single one that can dictate price. 3. consistent quality, no price change based on quality. 4. all buyers and sellers know conditions in the market.
New cards
32
increase in demand
initially price stays same. causes shortage
New cards
33
increase in supply
initially price stays the same. causes surplus
New cards
34
decrease in demand
initially price stays the same. causes surplus
New cards
35
decrease in supply
initially price stays same. causes shortage
New cards
36
shortages
price increases until equilibrium is met
New cards
37
surpluses
price decreases until equilibrium is met
New cards
38
Adam Smith
self interest, invisible hand
New cards
39
self interest
when people act in their own self interest it manifests societal benefits at large
New cards
40
invisible hand
metaphor for individual pressures on market. natural fluctuation on price and flow of trade to find equilibrium
New cards
41
thomas robert malthus
population and food production
New cards
42
population and food production
humans well eventually be unable to produce enough food to sustain themselves. population-geometrically, food production-arithmetically
New cards
43
david ricardo
comparative advantage and free trade
New cards
44
comparative advantage
an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners
New cards
45
free trade
each country naturally devotes its capital and labour to such employments as are most beneficial to each
New cards
46
Karl Marx
communism and criticism of capitalism
New cards
47
communism
society has no class divisions or personal property
New cards
48
criticism of capitalism
believed that capitalism would fall due to revolutions from the lower classes
New cards
49
john maynard keynes
importance of government spending to stimulate economy
New cards
50
importance of government spending to stimulate economy
stimulate demand for common goods and bring more people back to the workforce
New cards
51
milton friedman
laissez-faire capitalism and the importance of the money supply
New cards
52
laissez-faire capitalism
minimum governmental interference in the economic affairs of individuals in society
New cards
53
money supply importance
government should keep money supply stable, expanding slightly each year to allow for natural economic growth
Studied by 0 people
