Basic econ practice

One large firm(in a market), unique product(no close subs), High barriers(firms cannot enter the industry)Price Makers

invisible hand-The concept that societys goals will be met as people seek their self interest.

few Large Producers(less than 10) Identical or differentiated products high barriers to entry control over price, Mutual

Costs for fixed resources that DONT change with the amount produced. Ex: rent, Insurance, Managers Salaries.

Movement along supply curve-When the quantity suppy changes due to price change, but the supply curve doesn’t shift

Human Capital-The skills, knowledge and exp that workers bring to a job which make them more productive and valuable

The study of small economic units such as individuals, firms, and markets. Ex: supply and demand in specific industries

Are the traditional out of pocket costs associated with making a decision. Ex: Price of a movie ticket

Social Capitalismeconomic system that mixes freemarkets with govpolicies to reduce inequality and improve social welfare

opportunity costs of making a decisionEx: The forgone time/forgone wage you could of earned when you go to the movies

Movement along demandcurve-when the quantity demanded change because of a price change without shifting the demand curve

Supply- is the different quantities of a good that sellers are willing and able to sell (produce) at different prices

Opportunity cost- Most desirable alternative given up when you make a choice

Study of the large economy as a whole or economic aggregates. Ex: economic growth, government spending

Maximum legal price a seller can charge for a product. Goal: Make affordable by keeping prices from reaching Equilibrium

Costs for variable resources that DO change as more or less is produced. Ex: Raw Material, Labor, Electricity

Demand- is the different quantities of goods that consumers are willing and able to buy at different prices.

GDP- is the dollar value of all final goods and services produced within a country in one year.

Economies of Scale- Firms that produce more can better use mass production techniques and specialization

When supply is higher than demand, meaning there’s extra product that isn’t selling.

Mixed economy- A system with free markets but also some government intervention. 

we have unlimited wants but limited resources

When demand is higher than supply, meaning there isn’t enough of a product available at the current price.

How much output (goods/services) an economy or business is producing at a given time.

Physical Capital- The tools, machines, buildings, and technology businesses use to produce goods and services.