- •Why study economics
- •What are the ways economic knowledge help us in succeeding in our material welfare?
- •Scarcity and choice: the economic problem
- •What do people realize going through their lives?
- •What are economic goods and free goods?
- •Why do all economic units have to make their choices?
- •What does individual choice depend on?
- •What are governments and businesses limited by?
- •What is scarcity?
- •Why does scarcity force all decision makers to arrive at best decisions?
- •How do economists explain the essential sense of scarcity?
- •What is the opportunity cost?
- •What are foregone earnings (заробітки, від яких відмовляються)?
- •Why should people compare benefits before making their decisions?
- •Why does the cost of doing something have nothing to do with spending money in most cases?
- •What are the two sides of opportunity cost?
- •What problem does everyone in any society face?
- •Economics. Microeconomics vs. Macroeconomics
- •What is economics?
- •What economic issues does microeconomics do with?
- •What is macroeconomics?
- •What economic issues does macroeconomics look at?
- •What is the difference between positive economic statement and normative one?
- •What is positive economics concerned with?
- •What does normative economics deal with?
- •Factors of production
- •Economic systems
- •What are the three basic economic questions that every society must answers?
- •What is a command economy?
- •Who provides answers to the fundamental economic questions in a command economy? Why?
- •What is a market economy?
- •Who owns the means of production in a society with a market economy?
- •What are the essential elements of a market economy?
- •What is demand?
- •What factors alter consumer demand?
- •What does supply mean?
- •What does the law of supply state?
- •What is a supply schedule?
- •What is a supply curve?
- •What is the price elasticity of supply?
- •When supply is elastic?
- •What supply is called inelastic?
- •Market price
- •What is a price?
- •What is a price system?
- •What is a price for any commodity determined by in a free market?
- •What functions do prices perform?
- •Why do prices act as signals to buyers and sellers?
- •What is the producers’ main incentive?
- •Why does the price system determine each person’s income?
- •What is an equilibrium price?
- •What is excess supply?
- •What is a shortage and when does it develop?
- •What does a decrease in demand lead to?
- •What does an increase in supply result in?
- •Markets and market structures
- •What is oligopoly?
- •What are the key characteristics of oligopoly?
- •What is monopoly? Why does monopoly exist?
- •What is imperfect competition?
- •How does imperfect competition differ from perfect competition and monopoly?
What is the price elasticity of supply?
In economics, the price elasticity of supply is the degree of proportionality with which the amount of a commodity offered for sale changes in response to a given change in the going price. In other words elasticity of supply is a measure of how much the quantity supplied of a particular product responds to a change in the price of that product.
When supply is elastic?
elasticity of supply is a measure of how much the quantity supplied of a particular product responds to a change in the price of that product. Supply is elastic if a change in price results in a large change in the quantity supplied.
What supply is called inelastic?
In other words elasticity of supply is a measure of how much the quantity supplied of a particular product responds to a change in the price of that product. if a great change in price brings about a small change in the quantity supplied, supply is called inelastic.
Market price
What is a price?
Prices are the key ingredients in a market economy because they make things happen. If buyers want to own some items badly, they will pay more for them. When sellers want to sell some items badly, they will lower their prices. Prices play such an important role in economic life that most democracies are often described as price-directed market economies. Every commodity and every service has a price, i.e. the amount of money for which a unit of goods or services is sold and bought.
What is a price system?
The price system lies at the heart of any society. The price system is an economic system where prices are not set by government but by the interaction of supply and demand. Under such a system every commodity and every service has a price, i.e. the amount of money for which a unit of goods or services is sold and bought.
What is a price for any commodity determined by in a free market?
Price for a commodity is a reflection of supply of and demand for this commodity. The theory of supply and demand is the step toward understanding how market prices are determined and the way in which these prices help make production and consumption decisions - the decisions that make up not only the structure, but also the flesh and blood of the economic system*.
What functions do prices perform?
1)One of the functions of markets is to find equilibrium prices that balance the supply of and demand for goods and services. An equilibrium price (also known as a market price) is one at which each producer can sell all he wants to produce and each consumer can buy all he demands. 2)Prices act as signals to buyers and sellers. 3)Prices encourage efficient production. 4)The price system determines how society’s output will be distributed among the people.