tina

• Economics


  Nemein stands for manage
• Phillips curve


  • Shows the relation between inflation rate and unemployment rate
• Property rights


  The ability of an individual to own and exercise control over scarce resources
• Incentive


  Something that induces a person to act
• Opportunity costs


  Whatever must be given up to obtain some item
• Market power


  The ability of a single economic actor (or small group of actors) to have a substantial influence on market prices
• Explicit costs


  Input costs that require an outlay of money
• Efficiency


  The property of society getting the most it can from its scarce resources
• Conservation


  Con stands for together
• Comparative advantage


  The ability to produce a good at a lower opportunity cost than another producer
• Nemein


  To manage
• Rational


  (in classical economic theory) economic agents are able to consider the outcome of their choices and recognise the net benefits of each one
• Rational agents will select the choice which presents the highest benefits
• Producers act rationally by


  Selling goods/services in a way that maximises their profits
• Governments act rationally by


  Placing the interests of the people they serve first in order to maximise their welfare
• Rationality in classical economic theory is a flawed assumption as people usually don't act rationally
• A firm increases advertising

  Demand curve shifts right
• Demand curve shifting right

  Increases the equilibrium price and quantity
• Marginal utility


  The additional utility (satisfaction) gained from the consumption of an additional product
• If you add up marginal utility for each unit you get total utility
• Polymers


  Molecules made from a large number of monomers joined together in a chain
• Synthetic polymers


  • nylon
  • polyethylene
  • polyester
  • Teflon
  • epoxy
• Enzymes


  • They increase the rate of chemical reactions without themselves being consumed or permanently altered by the reaction
  • They increase reaction rates without altering the chemical equilibrium between reactants and products
• As temperature increases


  The rate of reaction increases
• The Wealth of Nations was written in 1776
• When analysing markets, a range of assumptions are made about the rationality of economic agents involved in the transactions
• Price elasticity of supply

  The responsiveness of the quantity supplied of a good to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price
• Supply curve


  A graph of the relationship between the price of a good and the quantity supplied
• Law of supply


  The claim that, other things being equal, the quantity supplied of a good rises when the price of the good rises
• Consumer surplus


  The area between the demand curve and the price
• Producer surplus


  The amount a seller is paid for a good minus the seller's cost of providing it
• Total surplus


  Value to buyers - Cost to sellers
• Deadweight loss


  The fall in total surplus that results from a market distortion, such as a tax
• Imposition of tariff


  Increases producer surplus and government revenue
• World price


  The price of a good that prevails in the world market for that good
• Willingness to pay


  The maximum amount that a buyer will pay for a good
• Laffer's curve


  The relationship between tax size and tax revenue
• Consumer surplus

  The amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
• Social marginal cost (SMC)


  Private marginal cost (PMC) + Marginal damage (MD)
• Social marginal benefit (SMB)

  Private marginal benefit (PMB) + Marginal benefit (MB)