ECON 1020
The Corporation
A film that examines the dominant institution in capitalism
Will shift the supply curve to the right, the equilibrium price will decrease, and the quantity demanded will increase
A new fertilizer which greatly improves the corn crop yield is being widely used by corn farmers. You accurately predict that this....
Economically classified as capital
A police car
Increases
A society can produce two goods: donuts and beer. The society's production possibility frontier is negatively sloped and "bowed outward" from the origin. As this society moves down its production possibility frontier, producing more and more units of donuts, the opportunity cost of producing beer...
They both gain
A voluntary exchange between a purchaser and a seller occurs because ______ from the transaction
An increase in the price of a substitute good
An in crease in demand for laptop computers would likely be caused by
A Market
An institution through which buyers and sellers interact and engage in exchange
The Law of Demand
As prices fall, quantity demanded increases
Articulate ONE of the 4 C's of political economy and compare this to a neoclassical economic concept.
Change is one C that can relate to a neoclassical economic concept. Change is brought about when there are conflicting interests. Change must occur when a market is not efficient or when there is market failure. A neoclassical economist doesn't make judgements but instead looks at how to maximize utility and efficiency and equilibrium. By creating change to maximize utility and be efficient, this compares to a neoclassical economical concept.
Descrive the relationship between the serfs and the lords during feudalism
During feudalism, the serfs supplied labor to the lords in return for protection and subsistence living.
Discuss TWO unique elements of the mode of life in capitalism
Economic gain is one element of the mode of life People are able to make profit by selling goods and serves. They then use this profit to support themselves or they can incest it to make an even bigger profit. Another element is free enterprise which means anyone can start a business if they would like to. THis is part of the mode of life because it gives people choices for exchange and opportunities.
Explain the importance of efficiency in Neoclassical Economics
Efficiency is producing what people want at the least possible cost and price because scarcity exists with unlimited human waste. This is important to a neoclassical economist because they believe in being as efficient as possible and also utility maximizing, which is having a great amount of happiness. If firms are efficient at producing goods, then both them and the consumers will be happy.
Neoclassical economic models, such as the production possibilities frontier, do not provide insight on equity. Explain.
Equity is whether or not the market is beneficial to all people and requires value judgement and whether or not the consumer is getting what they want at the lowest possible price. This is not depicted in neoclassical economic models because they are showing quantitive data while equity is qualitative, it can not be measured and analyzed by numbers.
Acquire Profits
Firms engage in production to
It is fully employing its resources but not necessarily being allocatively efficient
If a society is producing at a point along its production possibility frontier, then the society...
Markes Markets Less Efficient
If information is more costly and and less easily available, then usually this....
Normal Good
If the demand for green tea increases as income increases, green tea is a(n)
Increase, the quantity demanded will fall, the quantity supplied will ride
If the market for blue tooth headsets is unregulated and is presently characterized by excess demand, you can accurately predict that price will...
An increase in the supply
If the price of spinach decreases, there will be _____ of spinach enchiladas
There is an opportunity cost because you could have chosen to live in it
If you own a condo and you decide to lease it to your cousin,
Governments can facilitate the functioning of markets through educating workers
In The Wealth of Nations, Adam Smith argued that....
Free Market System
In a ______, the amount of output that any one household gets depends on its income and wealth
Households Supply Resources
In input or factor markets
A Laissez-Faire Economy
Individual people and firms pursue their own self-interest
Equity
Many economists argue that items such as food and clothing should be exempt from sales tax because low-income people spend a greater percentage of their income on these goods than do high-income individuals. This argument is motivated by concerns over
Bourgeoisie
Marx theorized that the means of production in capitalism is owned by this
The choices made by individual households, firms, and governments
Microeconomics is best described as the study of...
The market produces that people want & production occurs at least cost
Resources are allocated efficiently when
Normative Economic Reasoning
Should the college cut tuition to stimulate enrollment?
Price System
The _____ automatically distributes scarce goods
Collective Behavior
The concept that is best reflected on studying of how an individual's race, gender, and class influences their economic realities
Opportunity Cost
The income you could have earned if you didn't attend college is an ______ of attending college
Provide ONE example of why the mode of life evolved away from feudalism
The mode of life evolved away from feudalism because it wasn't equitable. People wanted to get paid for the labor they were supplying. THere were changes in the way people were living. For example technology changed, urbanization, the rise of individualism.
Economic Gain
The mode of life is defined by this in a disembedded economy
Marginalism
The process of analyzing the additional costs or benefits arising from a decision
Total Utility
The total amount of satisfaction yielded by the consumption
Production Inefficiency Occurs
When an economy is producing inside its production possibility frontier....
Increase in Equilibrium PRice
When there is a decrease in the supply of and an increase in demand for wireless speakers, this will definitely occur
Creature of Habit
While grocery shopping this weekend, you purchased that same loaf of bread that you always choose. Veblen would define your economic behavior as ____________
We collectively consume public goods
Why firms in the private sector may not provide them because they cannot exclude those who do not pay
Good that imposes an external cost
Your upstairs neighbor has a noisy dog that she keeps on her balcony. BEcause you are very sensitive to loud noises, the barking prevents you from using your own balcony. In this case, the barking dog is an example of
Imperfect information, A public good, An externality
____ is a source of market failure
