Btech Makaut Economics and Probability Review

These flashcards cover key concepts in economics and probability relevant to the student's Btech course and upcoming exam.

Opportunity Cost

The quantity of the next best alternative sacrificed to produce one unit of that good.

Decision Tree

A visual representation of decisions and their possible consequences, including chance and decision nodes.

Marginal Cost Curve

The curve that represents the additional cost of producing one more unit of a good.

Independent Events

Two events are independent if the occurrence of one does not affect the probability of the other.

Stagflation

The combination of stagnation and inflation in an economy.

WPI

Wholesale Price Index, a measure that reflects the changes in the prices of goods sold and traded in bulk.

Price Elasticity of Demand

Sensitivity of demand to change in price.

Recurring Costs

Costs that are incurred repeatedly over time, such as maintenance fees.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services.

Demand-Pull Inflation

Inflation that occurs when too much money is chasing too few goods.

Cost-Push Inflation

Inflation resulting from an increase in the prices of factors of production.

Average Fixed Cost (AFC)

Total Fixed Costs divided by the quantity of output produced.

Causes of Inflation

Factors that contribute to an increase in the general price level in an economy.

Variable Cost vs Fixed Cost

Variable costs change with production volume, while fixed costs remain constant regardless of production volume.

Discrete Probability Distribution

A distribution that shows the probabilities of outcomes for a discrete random variable.