Abnormal Profit-Occurs When The Total Revenue Is Greater Than Total Cost

Submitted By dav123456
Words: 627
Pages: 3
Open Document
1. Abnormal profit- occurs when the total revenue is greater then total costs

2. Adding value- occurs when the output created by transformation process is worth more the inputs used in the process

3. Aggregate demand- total planned demands for final goods and services in the economy at each price, with all other factors unchanged

4. aggregate supply shows the total level of planned output in the economy at each and every price

5. allocative efficiency- occurs when the price paid by the customer equals the social marginal cost of producing the good

6. appreciation- when a currency increases in value against other countries

7. asymmetric information- the difference in the information available to each two parties involved in a transaction

8. average cost- cost per unit

9. average product of labour- average output per worker

10. average revenue- the price of the unit

11. balance of payment- measures the value of one country currency transactions with the rest of the world over a given period

12. balance of trade- measures the value of the difference between a country’s export and its imports in good and services over a given pride

13. barriers to entry- factors that make entry to a market difficult

14. budget position- measures the difference between government revenue and spending over a given period

15. cartel- occurs when the business collude to set price and/or output

16. classical economist- wages and price adjust to clear markets quickly and the economy settles at or near full employment

17. community surplus- measures the sum of consumer surplus and product surplus

18. comparative advantage- advantage held by a country in the Production product, Ie has a lower opportunity costs than other countries

19. complements- products with negative cross price elasticity

20. concentration ratio- measures the market share

21. consumer price index- is a measure of inflation

22. consumer surplus- difference between the price charged for a product and what the customer wants to pay for it

23. consumption- planned spending by household on good and services

24. consumption- planned spending by household on good and services

25. cyclical unemployment- people are unemployed due to lack of demand in the economy

26. demand curve- shows demand at each and every price

27. diseconomies of scale- increase in long term averages, and the scale of production increases

28. equilibrium price- price at which the quantity of demand equals the quanlity supplied

29. fiscal policy- government spending, taxation and benefit rates to influence the economy

30. free goods- goods for which provisions have no opportunity costs

31. gdp-
Show More

Related Documents: Abnormal Profit-Occurs When The Total Revenue Is Greater Than Total Cost

Essay on Inflation and Money

Chapter 19 Demand for money – the quantity of money that people want to hold. Dominated assets – assets such as currencuy and checkable assets which earn lower returns than other asstets which are just as safe Equation of exchange – the equation MV=PY, which relates nominal income to the quantity of money Government budget constraint – the requirement that the government budget deficit equal the sum of the change in the monetary base and the change in government bonds held by the public. Hyperinflation…

Words 1610 - Pages 7

Essay on Economics: Supply and Demand and Demand Lower Price

Economics (Autumn) Introduction to Economics A price signal is information conveyed, to consumers and producers, via the price charged for a product or service, thus providing a signal to increase supply and/or decrease demand for the priced item. Problem of resources and scarcity Production possibility frontier What to produce? How much to produce? For who to produce? Circular flow of income Marginal decisions – decisions to buy a bit more or a bit less Specialisation – creation of comparative…

Words 793 - Pages 4

Aggregate Demand and Consumer Confidence Essay

Question 1 The consumption schedule indicates the relationship between household consume and the levels of disposable income (DI), this relationship is positive, which means "households will spend a large proportion of small disposable income than of a large one” (Jackson & Mclver 2011 p183). The consumption is directly related to the size of disposable income, therefore the relationship between disposable income and consumption is represented by the consumption schedule. Generally, disposable income…

Words 1844 - Pages 8

Global Business Economics overview Essay

Topic 1 GDP measures the total output of goods and services produced in an economy in a given period of time Y = C + I + G + (X – M) GDP as Y, Consumption by households (C), Investment made by firms (I), Government Expenditure (G), Exports (X) minus Imports (M). Y-T=C+S (T = Taxes, S= Household Savings DEF=G-T S=NFI +DEF+I NX=NFI Topic 2 The aggregate production function combines an economy’s physical capital stock, labor hours, human capital, knowledge, natural resources, and social…

Words 1973 - Pages 8

Essay about macro pool questions1

3 The government of New Holland is experiencing lower energy costs due to new technology in extracting energy sources such as gas and oil. Use the supply and demand model (and a diagram) for saving and investment to explain the likely effect on national saving, investment and the real interest rate in New Holland when its economy is closed. Explain the effects on employment of the new technology. Explain three different approaches that can be used to calculate GDP. Briefly indiciate why all three…

Words 4792 - Pages 20

Economics Paper

Macroeconomics”, Case, Fair, and Oster present their intellectual studies of macroeconomics to produce better economy for the future. In pursuit of doing so, they are spill their knowledge out about the money demand and equilibrium interest rate, aggregate demand in the goods and money market, aggregate supply and the equilibrium price level, the labor market in the macroeconomy, and the financial crisis, stabilization, and deficits within the economy. All of these subjects are a crucial part of macroeconomics…

Words 4389 - Pages 18

Macroeconomics: Inflation and Aggregate Demand Essay

interest sensitivity of money demand. An elastic money demand function caused the LM curve to be relatively flat. An inelastic money demand function caused the LM curve to be steep. D) The slope of the IS curve depends on the slope of the investment function. If investment is highly interest elastic, then the IS curve is relatively flat. If investment is not highly interest elastic, then the IS curve is very steep. E) The quantity of money and shifts in money demand at given levels of income and…

Words 1564 - Pages 7

Final: Aggregate Demand Curve Essay

|Economics 201 |NAME ______________________ |Prof. Robert J. Gordon | | | | | |Final Exam | |Fall 2009 | Put your name on the answer sheet…

Words 4422 - Pages 18

Macro Study Guid Essays

Chapter 11 Key Terms Planned investment: the amount that firms plan or intend to invest. Investment schedule: a curve or schedule that shows the amounts firms plan to invest at various possible values of real gdp. Aggregate expenditures schedule: a schedule or curve showing the total amount spend for final goods and services at different level of real gdp. Equilibrium gdp: the total quantity of final goods and services purchased is equal to the total quantity of final goods and services produced…

Words 1558 - Pages 7

Economics - Tutorial Answers Essay

1 Managerial Economics 2010 Answers to All Tutorial Questions Topic 1 : What is managerial economics Questions from Chapter 1 of the Text (McTaggart, Findlay & Parkin) Review Question 1 (pp. 4) List some examples of scarcity in Australia today. An example of scarcity at the economy-wide level would be people with lower incomes being forced to choose between food and petrol due to high prices for both. An example of scarcity at an individual level would be a person unable to afford both…

Words 26234 - Pages 105