1/infinite…
Terms we have used...in order of occurrence
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
Correlation vs causality
Positive and normative statements
Ceteris paribus
Resource allocation
Basic economic problem
Utility and marginal utility
Pareto optimum or maximum allocative efficiency
De facto and potential growth
PPF
Index
Perfectly competitive markets
Oligopoly
Monopoly
Monopolistic competition
Law of D and law of S
Income and substitution effect (slope of D)
Effective demand and effective supply
Change in Qd vs change in demand
Non-price variables
Derived demand
Joint supply
Price mechanism → signal → rationing function and incentives function
Consumer surplus (later; producer surplus and societal surplus)
Non-price variables affecting supply
a. Price, quality, availability and quantity of factors of production
b. Market intervention by govt
c. Market entry and exit
Rationing function of price (on demand)
Incentives function of price (on supply)
Excess D and excess S (market forces)
Administered price (NPOS)
Supply and demand for labour (by firms!)
Minimum price (on labour)
Consumer surplus
Producer surplus
Societal surplus
Gross and net loss
Deadweight loss
Allocative efficiency
Pareto optimum
Indirect tax
Expenditure tax
Ad valorem tax (value-added tax – VAT)
Unit tax
Incidence of tax (or subsidy)
Incidence on consumer/producer
PED…values…NOT slope…from infinite to zero along a linear curve…
Determinants of PED (subst’s, time element)
2/infinite…
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.
91.
92.
93.
94.
95.
96.
Total revenue
Inelastic…elastic…unitary PED
CPED – substitutes and complements
Weak and strong substitutes/complements, CPED values (+ and -)
yED – normal and inferior goods
PES
Primary and secondary goods
Terms of trade (ToT)
LDC and MDC
Commodity
Monopsony (NPOS)
Resource endowment
Supply outstripping demand
Income distribution (Gini coefficient and Kuznets ratio)
Regressive effect (of subsidy or tax)
Progressive effect (of subsidy or tax)
Minimum price
Maximum price
Dumping
Arbitrage (re-selling)
MSC, MPC, MSB, MPB
Neg/pos ext’s
Third parties
Welfare loss, potential welfare gain
Merit goods, demerit goods
Public goods
Non-rivalrous, non-excludable
TP, AP, MP
Diminishing returns
Fixed and variable factors
SR and LR
TFC, TVC, TC
MC, AFC, AVC, TC
MR, AR, TR
BEP
Accounting costs
Explicit and implicit costs
Economic costs
Normal profit
Abnormal profit
Profit-max condition
Revenue-max
Profit-saticficing (no spelling error here!)
Predatory pricing
Barriers to entry
Price-taker
Market entry
Market exit
BTE
Shut down point
Allocative efficiency
3/infinite…
97. Productive efficiency
98.