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11 Cards in this Set
- Front
- Back
Markets
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Will Occur when buyers and sellers come together and agree to an exchange.
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Households (Consumers)
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Makes Consumer decisions. The goal is to maximize Utility; satisfaction.
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Businesses (Firms)
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Will transform inputs into output for purpose of sell. The goal is to try and maximize profit
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Government (Public Sector)
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Provide public goods/services and transfer income between groups. The goal is to maximize social welfare.
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Resource Markets
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Where factors of production are bought and sold
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Product Markets
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Output Market. Final Goods and Services are sold.
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Demand
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What buyers are willing and able to purchase at every price ina given time period. All other things equal.
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Demand Curve
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A Change in Price leads to a change in Quantity demanded
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Law of Demand
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There is a negative or inverse relationship between the price of a good and the Quantity demanded of the good. Ceteris Paribus.
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Law of Demand Formula(s)
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1. Increase in Price= Decrease in Quantity Demanded
2. Decrease in Price= Increase in Quantity Demanded |
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Chapter 4
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Demand & Supply
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