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PACE / Economics / ECO 106 / How are goods and services made?

How are goods and services made?

How are goods and services made?

Description

School: Pace University
Department: Economics
Course: Principles of Economics: Macroeconomics
Professor: Cesar castope
Term: Fall 2015
Tags: Microeconomics, study, guide, chapters, 1, 4, MARK, Weinstock, pace, University, and Economics
Cost: 50
Name: Microeconomics - Study Guide Chapters 1-4
Description: Here is the study guide I have created
Uploaded: 03/05/2016
12 Pages 32 Views 1 Unlocks
Reviews


hapter


How are goods and services made?



1

that is Economics ?

The study of choices when there

is scarcity.

Scarcity = The resources we use to produce goods

and services are limited. Resources - Factors of Production = What is used

to make goods and sevices to Natural Resources = What is provided by


What are the 2 types of analysis?



We also discuss several other topics like Why do we have banks or enterprises?

- nature How are goods and services made ?

• Labor = Human effort (physical & mental)

Capital = Physical capital / Human capital

Stock of equipement,

machienes, Structures and infrastructures.

Knowledge and skills that a worker

has, through

education.


How do you find the marginal change?



We also discuss several other topics like How do we learn gender roles?

Entrepreneurship

Effort used to coordinate factors of production - natural resources labor, physical human Capital & to produce and sell

goods and services.

SC

2 Types of Analysis

Positive Analysis

I

Normative

Analysis

Ansevers precise questions - Answers questions that don't involve opinions. that involve a "What is?" / " What will be a

person's judgement or

Topinion on something Ex: - what happens if ...

I therefore the answer - How much is ... il com Ivary. - Where will ... ? : "What ought to be ? We also discuss several other topics like Could plebeians work in the government?

- What do you think ? - What's your opinion on...? If you want to learn more check out What is emperical study?

- Do you think ... ? Economic Model = A Simplified representation of an

economic environment, often

o employing a graph. Ceteris paribus = latin expression, means " all other

variables are held fixed "

UA

WMA

Marginal Change = Small, one-whit change in value

Microeconomics a study of the choices made by

households, firms and government, and how these choices offect the markets for goods andor If you want to learn more check out What is law of parismony?

services

SENSO

hapter

I

Siminishing

Returms= Qutput will decrease for the same amount of input increase If you want to learn more check out What is haiti’s religion?

1

OutputĄ

tansmoa

ty

tot

Ti 2 3 4 Input

Production

possibilities curve = shows the possible combination of products that an economy can produce, given that its productive resources are fully employed and effectively

Tons of steel per year

4

.

6507

300+

420

Soup

10

20

60

70

• Tons of wheat

per year

n

Marginal Benefit & An additional benefit

o resulting from a small increase

im some activity. Marginal Cost = The additional cost resulting

from a small increase in some activities

Revenue is higher than cost of #1 ]

- production

300 ya

- Revenue is smaller than

the cost of i

Marginal Cost production

-

20 H

978---- 150 l 135 ttan

125T

Marginal

Ti

2 3

#of movies

Net Benefit =

Total Benefit - Total Cost

No (NBTC-TB

CNB = TC - TB

Slope of TB

A TO Z MB]

A= change in...

i Q = quantity

Slope itch

Tc

BTC = Mc

MB; 4 Me

Stud

Pt. of equilibrium

MA

IT MB) Mc do more IS MB <me = do less If MB = MC a perfect

SOU

Study SO

Chapter 3

To twist Main idea of supply and demand:

Il print 4, then demand & DEMAND Il tlnit , then demand Ą let

Il cost of production 1, supply & Supply If cost of production & Supply & x

Il $1 unit p supply & If a product is valued at more Igo Blunit o, supply & I money, the producere will want

to sell more. SHIFTS of Supply and Dermand curies Semand: Non-price determinants

@ Preferences Tastes & Prome 2 Population

Related Goods 2 Expected Price

AS

suply: Non-price determinants

T @ Resource cost

2 Competition 3 Expected Prices ☺ Technology

اللي مدلها (5)

6

Business

Taxes

Point of Equillibrium

W

Suomet Point of Equillibrium - mikub Suply Demand

ansit utocna to two

Absolute

Advantage &

Coin do more of the same thing in the same time, or same amount in less time.

Comparative

Advantage =

Difference in

opportunity

caninotet eng noua Opportunity cost = If I produce

how much do give up to make Of vice versa.

a and y.

I have to ly ?

han undatebung - No

a uta tow ewoald Do

rotikequa

celand

Lal 22ever

Stoup

Study

Chapter 4

Perfectly Competitive Market = A market with

many sellers and buyers of a homogenous product and no barriers to

Quantity demanded = The amount of a product

that a consumer is able and

willing to buy Jemanded Schedule = A table that shows the

recationship between the price of

a

product

and

Only one thing can change Quantity demanded which is price of product. NOTHING else can само

On the other hand many other things can & influence demand (general demand not to be confused with D.D.).

Stud

Shift vs Movement Shift = The whole curve shifts Movement = There is movement along the curve, but

the curve doesn't more at all.

Stude

Individual demand curve = A curve that

shows the relationship between the

price of a good and quantity demanded by an individual or

consumer, ceteris parabus mand = There is a negative relationship

between price and quantity

demanded, ceteris paribus Quantity supplied The amount of a product

" that firms are willing to and able Soup to sell

Stue

redule = A table that shows the

relationship between the price of a product and quantity supplied, ceteris

paribus.

Individual Supply Curve = A curve showing the

relationship between price and quantity supplied by a single firm, ceteris

paribus Ceteris paribus= "All else is held constant" Law of Supply - There is a positive relationship

between price and quantity

supplied, ceteris paribus. I

Studs

Market Supply Curve = A curve showing the

relationship between the market price and quantity supplied by

all firms, ceteris paribus. Market Equillibrium A situation in which

the quantity demanded equals. the quantity supplied at the

prevailing market price Excess Demand (Shortage) = A situation in

which at the preventing prior

the quantity demanded exceeds

the quantity supplied. Excess Supply (Surplus) = A situation in which

the quantity supplied exceeds the

quantity demanded at the prevailing price.

Studou

Stucu

GROSARI

anos

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