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Microeconomics (Markets (Market description/behavior (supply and demand…

- - - - The inelastic product means that changes in price do not affect to a noticeable degree, the supply or demand.
      - Perfectly inelastic
        
        when quantity demanded doesn't respond at all to changes in price
    - - Perfectly elastic
        
        when any price increase will cause the quantity demanded to drop to zero
      - The elastic product means that any change in price can result in changes in supply or demand.
  - - - deflation: The ratio of nominal GDP to real GDP in a year times 100
      - price stability: aggregate price level is changing very slowly
      - inflation: a general increase in prices and fall in the purchasing value of money
  - - - is a market structure in which a small number of firms has the large majority of market share
    - - a monopoly refers to a sector or industry dominated by one corporation, firm or entity
        
        products are identical
      - monopolist
        
        single-price monopolist
        
        (perfect) price discrimination
    - - industry in which many firms offer similar products or services, but are not perfect substitutes
    - - This market structure occurs when an industry has many businesses selling the same product.
  - - - Marginal Cost & Marginal Utility
        
        Marginal utility: Change to the total utility by consuming one additional unit
        
        Marginal cost: Cost of producing one additional unit
  - - - negative :cry: = External costs
      - positive :smiley: = External benefits
    - - government imposed price control on how low a price can be charged.
      - price ceiling: government-imposed price control or limit on how high a price is charged for a product. Governments intend to protect consumers from conditions that could make commodities prohibitively expensive.
    - - licence
      - quota a limited or fixed number or amount of people or things, in particular.
        
        quota rent
        
        Quota rent is the economic rent received by the owner of the imported good that is subject to the quota. To calculate quota rent, first calculate the economic rent, which is the positive difference between the domestic price of the good and the free market price from around the world.
        
        wedge
        
        A tax wedge is the difference between before-tax and after-tax wages. The tax wedge measures how much the government receives as a result of taxing the labor force. 2. A measure of the market inefficiency that is created when a tax is imposed on a product or service.
  - - - a loss of the consumer and producer surplus that would occur if market was efficient - the loss represents transactions that did not takr place
    - - if there are more goods supplied than demanded/ if the demand is greater than the supply
    - - A competitive market is one in which a large numbers of producers compete with each other to satisfy the wants and needs of a large number of consumers. In a competitive market no single producer, or group of producers, and no single consumer, or group of consumers, can dictate how the market operates.
    - - demand
        
        law of demand: The law of demand says that a higher price for a good or service, all other things being equal, leads people to demand a smaller quantity of that good or service
        
        change in demand: shift of the demand curve, which changes the quantity demanded at any given price
        
        movement along the demand curve: change in the quantity demanded of a good that is the result of a change in that good’s price
        
        demand curve: graphical representation of the demand schedule. It shows the relationship between quantity demanded and price
        
        demand schedule: A demand schedule shows how much of a good or service consumers will be willing and able to buy at different prices
        
        quantity demanded: The quantity demanded is the actual amount of a good or service consumers are willing and able to buy at some specific price
        
        individual demand curve: illustrates the relationship between quantity demanded and price for an individual consumer
        
        demand price
      - consumer / producer: a person or organization that uses a commodity or service/a person who creates economic value, or produces goods and services
      - supply
        
        quantity supplied:
        is the actual amount of a good or service producers are willing to sell at some specific price
        
        supply schedule: shows how much of a good or service producers will supply at different prices
        
        supply curve: shows the relationship between quantity supplied and price
        
        law of supply:
        says that, other things being equal, the price and quantity supplied of a good are positively related
        
        change in supply: is a shift of the supply curve, which changes the quantity supplied at any given price
        
        movement along the supply curve: represents the variation in quantity supplied of the commodity with change in its price and other factors remaining unchanged.
        
        supply price
      - Supply & Demand
    - - equilibrium price / market-clearing price: the price at which the quantity of a product offered is equal to the quantity of the product in demand.
      - equilibrium quantity:
        Economic quantity is the quantity of an item that will be demanded at the point of economic equilibrium.
- - - - employment
        
        people who have an occupation
      - unemployment
        
        people who are not working
      - unemployment rate
        
        Percentage of the total number of people in the labor force who are unemployed
    - - A problem or situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).
    - - number that summarizes a country’s level of income inequality
        (based on how unequally income is distributed across the quintiles)
- - - - comparative advantage : the ability to carry out a particular economic activity more efficiently than another activity
      - absolute advantage: the ability of an individual or group to carry out a particular economic ability more efficiently than another individual or group
  - - - import
        
        limit to on the quantity imported of a good
  - - - unemployment rate
        
        Percentage of the total number of people in the labor force who are unemployed
    - - consist of manufactured productive resources such as equipment, buildings, tools and machines
  - - - positive outcome
        
        connection of countries
      - negative outcome
        
        smaller businesses aren't competitive enough
        
        companies try to safe
        
        workers get paid less
        
        Income Inequality
        
        poverty
        
        the state of being extremely poor
  - - - bring goods or services into a country from abroad for sale
    - - send goods or services to another country for sale
- - - - fundamental economic problem of having seemingly unlimited human wants in a world of limited resources
    - - value of the choice of a best alternative which is inherently lost through the process of making a decision
    - - another product can be used instead
  - - - the benefit gained from consuming one additional unit of a good or service.
    - - total satisfaction received from consuming a given total quantity of a good or service, while marginal utility is the satisfaction gained from consuming another quantity of a good or service. Sometimes, economists like to subdivide utility into individual units that they call utils.