Study guides, Class notes & Summaries

Accounting profit formula - ANSWER total revenue - explicit costs economic profit formula - ANSWER = total revenue - explicit costs - implicit costs Total revenue formula - ANSWER = price x quantity Average fixed cost (AFC) formula - ANSWER =total fixed cost DIVIDED BY quantity Average Variable Cost (AVC) formula - ANSWER =total variable cost DIVIDED BY quantity Average Total Cost (ATC) formula - ANSWER = total cost DIVIDED BY quantity Marginal Cost formula - ANSWER =change in ...

Marginal thinking - ANSWER what's next/ additional action Normal good (regular) - ANSWER a good that consumers demand more of when their incomes increase. Ex: "I'm still going to buy gas b/c I need it" Inferior good (luxury) - ANSWER a good that consumers demand less of when their incomes increase ex: I'm not going to buy as much ramen when I'm ballin' Price elasticity of demand - ANSWER a measure of the sensitivity of demand to changes in the price formula: Q/P * answer is P...

capital - ANSWER Which factor of production are power tools, hammers, steel, and other building materials examples of? positive statement - ANSWER Which economic assertion is described by a statement of fact? scarcity - ANSWER Which concept relates to limited resources? scarcity - ANSWER A town chooses to use most of its budget for road repair instead of fire protection. What is this scenario an example of? private property rights - ANSWER Which characteristic is a part of a market e...

Economics - ANSWER the study of how people, individually and through institutions, make decisions about producing and consuming goods and services, and how they face the problem of scarcity. Focuses on opportunity costs, the assumption of maximization in terms of ones own self interest, and the analysis of choices at the margin. Uses models to test theories. Scarcity Resources - ANSWER The inability to satisfy everyone's wants - due to limited _______________. economics seeks to solve the p...

Economics - ANSWER the study of how humans make decisions in the face of scarcity 3 basic economic questions - ANSWER What to produce? How to produce? For whom to produce? opportunity cost - ANSWER measures cost by what is given up in exchange; opportunity cost measures the value of the forgone alternative How do economists assume individuals make choices? - ANSWER whatever will serve their own self-interest margin - ANSWER the current level of an activity choice at the margin - A...

WGU C718 Questions and Answers Already Graded A When a 10% price increase generates a 10% decrease in quantity demanded Unit Elastic When beef and pork are substitutes for consumers, the cross elasticity of demand between the two products is... Positive When the price elasticity of demand for opera tickets in Orlando is 1.00 the the demand for opera tickets in Orlando is Unit Elastic A vertical demand curve reflects demand that is Perfectly Inelastic Consumers will buy a certain quantity reg...

WGU C718 Quiz Latest Update with Certified Solutions A change in income will lead to a shift of the demand curve. What would we expect to happen if consumer income increased? Demand increases Supply Schedule a table that shows quantities supplied at different prices during a particular period Supply Curve is a graphical representation of a supply schedule. a change in quantity supplied A change in price causes a movement along the supply curve a supply shifter A variable that can change the...

WGU C718 Pre-Assessment: Microeconomics PJKO Questions and Answers 100% Pass Which concept relates to limited resources? Scarcity What does fresh water costing more than gas exemplify? Scarcity (example) Which characteristic is a part of a market economy? a-Hereditary customary roles b-Government-created mandate c-Private property rights d-Past family traditions c-Private property rights A student has been working extra hours at a part-time job and is debating subtracting an hour from work...

WGU C718 Full Study Guide Questions Rated A+ What is the definition of economics? the study of how humans make decisions in the face of scarcity What are economic and accounting profits? Accounting - profit computed using only explicit costs Total revenue - Explicit costs = accounting profit Economic - profit computed using explicit and implicit costs Total revenue - Explicit costs - Implicit costs = Economic profit What are the characteristics of an oligopoly? 1) few firms 2) barriers to ent...