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 Utility 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?