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Market A group of producers and consumers who exchange a good or service for payment. Competitive Market A market in which there are multiple producers and consumers of the same good or service. Demand The different quantities of goods...

Warm-up One: What does scarcity mean? Something is scarce when it is desirable and limited. Scarcity occurs because people have unlimited wants, but limited resources to satisfy those wants. What is the opportunity cost of taking an all expense Hawaii Vacat...

Supply The amount of a good or service people are willing to sell at a specific price. Law of Supply Directly proportional relationship between selling price and supply. As the selling price increases, quantity increases. Supply Curve Upw...

Single-variable calculus:f : D c R -> R D = domain c = subset R = real numbers f = function Ex. f(x) = x/1-x where x-> x/1-x R^a where a represents the number of dimensions. Multivariable calculus:f : D c R^n -> R Basically, for something like R^2, we...

Price Floor An established price which is above the equilibrium. Results in a surplus. Calculated by subtracting the quantities (i.e. Supply quantity - Demand quantity) Price Ceiling/Cap An established price which is below equilibrium. Results in a shorta...

National Accounts National accounts are responsible for keeping track of the flow of money among different sectors of the economy. Also known as the national income and product accounts. The Circular-Flow Diagram Visualizes the key concepts of national a...

Labor Force The sum of employed, and unemployed. Employed Working part time or full time that is receiving a wage. This means if you are working to pay off your debt, you are not employed. Labor Force participation rate The percentage of the population ag...

Types of Unemployment 1. Frictional Unemployment Workers engaged in job search. 2. Structural Unemployment Unemployment is a result of a surplus in the supply vs demand of labor (at the current wage).Causes of structural unemployment <- Test Question Mi...

Inflation General rise in prices over time. Inflation has an effect on wages, income, and borrowing. Inflation rate = (Price level of year 2 - price level of year 1) / price level of year 1 * 100% Consequences of Inflation Erodes purchasing power. Menu C...

Which statement is true about the circular flow diagram of an economy? Responses A The market for goods and services connects household spending to government spending. B The ...

Price Index Measures the cost of purchasing a market basket. Calculate the price of market baskets (Ex. CPI - Consumer Price Index) Calculate the price index. Using a base year, we will then be able to calculate the rate of inflation from one time period...

Multiplier When there is an increase in the CIGXn, it is going to have a multiplying effect on the economy. One person's income becomes another individual's income and on and on. Thus, money in an economy is spent multiple times. It acts as a chain reaction...

Short-run Aggregate Supply Curve Upward sloping because nominal wages are sticky. Thus, a higher aggregate price level leads to higher profits and increased aggregate output in the short run. Nominal wage The dollar amount of the wage paid. ...