Microeconomics Objective Terms to Review

Microeconomics Objective Terms to Review
100 Points Objective (Chapters 1, 2, 3, 6, 7, 8, 9, 10, 11)
AP Economics
The study of economics is primarily concerned with?
"There is no free lunch" means?
According to economists, "Want" exceeds "Have" why?
Marginal costs are?
What are Economic models?
A production possibilities curve shows?
Factors of production include?
What is the economizing problem?
What are opportunity costs?
Understanding opportunity costs in graph
What is Scarcity
Features of a market system?
The term laissez-faire suggests?
What are the Five Fundamental Questions?
The following data which show all available techniques for producing 20 units of a particular commodity:
Be ready to show efficiency with production
What is Consumer sovereignty?
The law of demand states?
Income effect
Substitution effect
complementary goods vs. substitute goods
price ceilings
price floors
equilibrium price
Black markets are associated with?
(Consider This) Ticket scalping
The price elasticity of demand coefficient measures? (elastic / inelastic)
Consumer surplus
Producer surplus:
Allocative efficiency
Marginal utility
The law of diminishing marginal utility
The theory of consumer behavior
The diamond-water paradox.
“Price Maker vs. Price Taker”
Cost data for a firm that is selling in a purely competitive market – understanding fixed costs and total costs
Implicit costs and explicit costs
Short Run vs. Long Run
The law of diminishing returns
Fixed Costs vs. Variable Costs
Economies of Scale
Pure monopoly means?
Monopolistic competition means?
Nonprice competition refers to?
The term oligopoly indicates?
Barriers to entry in each type of market
What is a cartel?