Economics 1

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If administration and/or communication becomes more difficult and costly in a very large firm, this is an example of:
Diseconomies of scale
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A production possibility curve illustrates:
maximum production of two outputs from a given resource input
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In the event of excess supply over demand the price will:
fall
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Productive efficiency means:
using production techniques that do not waste resources
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As more and more units of a commodity are consumed, the extra (marginal) satisfaction or utility derived from each successive unit will tend to:
decrease
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In a demand function the relationship between price and quantity demanded for a normal good is:
inverse
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A shift of a demand curve could be caused by:
a change in taste of fashion
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Movement along the demand curve is caused by a change in
price
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'substitutes' are:
goods which are bought as alternatives to the good in question
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Opportunity cost is related to:
forgone alternatives
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A 'demand' schedule:
sets out amounts demanded at various prices within a set time period
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A marginal utility curve:
shows the extra satisfaction from consumption of one more unit of good
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In a supply function the relationship between the price and quantity supplied is
direct
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Profit is equal to?
total revenue minus total cost
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Choice is the fundamental problem of economics because:
resources are scarce relative to wants
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Fixed costs in the short run
do not vary in direct proportion to output
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The desire to buy a good backed by the ability to do so, is:
effective demand
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A shift of the supply curve to the left means:
less is supplied for the corresponding prices
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Economic goods are:
those which are produced from scarce resources
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The market mechanism tends to allocate economic resources:
efficiently
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Other cards in this set

Card 2

Front

A production possibility curve illustrates:

Back

maximum production of two outputs from a given resource input

Card 3

Front

In the event of excess supply over demand the price will:

Back

Preview of the front of card 3

Card 4

Front

Productive efficiency means:

Back

Preview of the front of card 4

Card 5

Front

As more and more units of a commodity are consumed, the extra (marginal) satisfaction or utility derived from each successive unit will tend to:

Back

Preview of the front of card 5
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