Micro Exam 1 Notes

Externality

________- impact of one persons actions on the well- being of a bystander.

Dr Wheeler

________ economics definition- the study of human behavior as to how we may best ameliorate the material aspects of the fall.

Liberal

________- treating everyone equal human beings.

Perfect competition

________- particular market where there are many buyers and sellers.

Elasticity

________- responsiveness of the variable (dependent) to change in another variable (independent)

Institution

________- durable forms of common life, framework /structures of what we do together.

dignity

Market- institution that emerges when people are treated with respect and ________ and are provided with freedoms.

Lionel Robbins

________ economics definition- human behavior as a relationship between ins and scarce means which have alternative uses.

Microeconomics

________- study of how households /firms make decisions and interact in specific markets.

Oikos

________- of certain affinity, a dwelling.

Trade

________ is based if comparative advantage.

Adam Smith

________- father of economics.

Absolute advantage

________: producing good or service at the lowest money cost, using the fewest resources possible.

Normative statements

________- claim about how the world should be.

Positive statements

________- claim about how the world is.

Comparative advantage

________- producing good or service at the lowest opportunity cost.

Status analysis

________- everything remains equal and we study status at different points in time.

Point elasticity formula

________: multiply the slope of the demand curve by the ratio of price to quantity at the specific point on the demand curve.

Liberal

treating everyone equal human beings

Subdue

tread down, bring into bondage (kabash, radah)

Abad

work

Shamar

keep

Celeris peribus

everything equal

Institution

durable forms of common life, framework/structures of what we do together

Autarky

no trade, independence

Fungible

you can divide it as many times as you want

Concrete

place, Dons Market

Abstract

emergent institution

Perfect competition

particular market where there are many buyers and sellers

Adam Smith

father of economics

Knowledge problem Hayek

households and economics are different

Market

institution that emerges when people are treated with respect and dignity and are provided with freedoms

Microeconomics

study of how households/firms make decisions and interact in specific markets

Positive statements

claim about how the world is

Constrained

liberal

Unconstrained

conservative

Factors that determine price demanded

price, income, price of related goods, quality

Absolute advantage

producing good or service at the lowest money cost, using the fewest resources possible

Comparative advantage

producing good or service at the lowest opportunity cost

Elasticity

responsiveness of the variable (dependent) to change in another variable (independent)

Point elasticity formula

multiply the slope of the demand curve by the ratio of price to quantity at the specific point on the demand curve

Income elasticity

change in quantity demanded/change in income

Cross price elasticity

change in demand/change in price

Price elasticity of supply

change in quantity supplied/change in price