Micro Economics (Ch1-3)

model

ceteris paribus

positive statement

normative statement

scarcity

opportunity cost

marginal analysis

economic agents

factors of production

renewable resources

non renewable resources

ppf

potential economic growth

GDP

division of labour

market

functions of money

Market economy

Command Economy

Mixed economy

demand

diminishing marginal utility

law of demand

snob effect

normal good

inferior good

substitutes

complements

elasticity

ped

income elasticity of demand

cross price elasticity

if YED is positive and greater than 1

XED postive less than 1

XED is negative less than 1

if XED is positive and greater than 1

supply

firm

total revenue curve

competitive market

influences of supply

how to work out
amount of
subsidy or tax?

cartel

movement along supply curve

PES

comparative statistic analysis

consumer surplus

MSB

producer surplus

marginal cost

allocative efficiency