1. http://www17.us.archive.org/stream/EconomicsForDummies_/EconomicsForDummies_djvu.txt
2. I'm gonna treat this book as a primer, to introduce me to the general concepts and vocabulary. I will wait until I start reading books on Micro/Macro, Monopolies, etc to learn more technical stuff. Just take it easy with this book. Don't get frustrated with trying to understand everything. Finish up my Political Phil & Thinking and Deciding for sure. I should wait until i learn stats & probability before i delve any further into statistical inference / inductive logic and stuff like that. stick to concept until i regain some math knowledge. so if there's every any math involved in any of my books, JUST TAKE IT EASY. don't get frustrated if it doesn't sink in. YOU NEED TO DO EXERCISES FIRST, in a math book that is devoted to teaching that math. don't expect to become a guru in expected utility theory by reading Thinking and Deciding, for example.
3. i should start my logic book over from scratch and work my way up again. this time i can skim through, but still, brush up on what you've forgotten.
4. realize this: now matter how broad or specific you decide to make your studies, YOU WILL ALWAYS NOT REMEMBER EVERYTHING PERFECTLY. so recognize your limitations. you must not let things frustrate you. FOCUS ON YOUR ACHIEVEMENTS RATHER THAN YOUR LACK OF ACHIEVEMENTS.
5. We're calling this one quits for now. I think I have enough knowledge to start on another Economics book. But I need to learn the theory and concept more, and this book just isn't providing it for me.
6. http://www.goodreads.com/book/show/6767656-man-economy-and-state-with-power-and-market-scholars-edition
7. Notes
7.1. Brainstorm stage
7.1.1. Note important concepts and a brief summary when needed, then go back and organize the chapter.
7.1.2. Cite pages if you feel it a good idea
7.1.3. I think I should develop a system to make citations easy, for easy reference. Check note box.
7.1.4. need to be careful where I put my page citations, since i might put various tidbits of info from diff pages under a generalized category
7.1.5. should create a node for organizing the book by concept, idea, place, definition, etc ... as well as by chapter
7.1.6. should have a node for most important info, node for technical stuff perhaps, node for less important stuff perhaps...
7.1.7. This icon means that there needs to be something elaborated, or at least should be examined again
7.1.8. nodes include: concept, definition, people, places, times, misc, notes
7.2. Important notes
7.2.1. remember to categorize nodes so that the broadest categories are very few words and (ideally) only the last node has a lot of info on it
7.2.2. read a couple paragraphs at a time, AND THEN summarize. otherwise you get caught up in noting every little detail even if it isn't really important
7.2.3. Perhaps give a brief chapter overview, or something like that
7.2.4. For definitions, have parent and child nodes for sub-topics of a general topic - but also have child nodes as their own parent node, as separate entities
7.2.5. Chapter 4 needs some revisions; I was drunk while typing this up lol.
7.2.6. Add graphs and visual representations for the topics -- would be gratefully helpful
7.2.7. Get a book on concept/idea maping...maybe they are more efficient? idk
7.3. What I have completed thus far
7.3.1. Some touching up of ch1
7.4. Revise this later; too convoluted
7.4.1. Information
7.4.1.1. Changes in production costs changes the supply curve
7.4.1.1.1. The things that make production more costly will shift the supply curve up, and the things that lower costs will shift the supply curve down
7.4.1.2. price/quantity relationship is therefore linear; more quantity = higher price that he asks for
7.4.1.3. production costs rise as people make more of something, therefore suppliers ask for more money for larger quantities
7.4.1.4. minimum price at which someone is willing to sell an amount of good or service
7.4.2. Graph Representation
7.4.2.1. A) Supose you off Mr. Babbage $1 per cabbage, and then you let him choose how many cabbages he wants to produce
7.4.2.2. B) He will want to produce exactly 10 cabbages and no more
7.4.2.3. C) This is because for 1-9 cabbages, the cost of production is less than what you're paying him.
7.4.2.4. D) Example: Consider point A - his production cost is 50 cents per cabbage. That means that if you're going to pay him $1 per cappbage, hell be making a nice profit. Similarly, his because his cost for producing six cabbages is also less than $1 per cabbage, he'll also want to make six cabbages. The same holds for 6,7,8 and 9 cabbages.
7.4.2.5. E) At 10 cabbages, he is indifferent, because his cost per cabbage is $1 and you're offering him $1. In such cases, economists assume that he'll produce the 10th just to keep the buyer happy.
7.4.2.6. F) Note that Mr. Babbage won't, however, produce Point C if you were offering him $1/cabbage. This is because his cost of production is $1.50 per cabbage, and he could lose money.
7.4.2.7. Supply Curve
7.5. Link to e-book
7.6. i really fucking like how i organized the part in "Bringing supply and demand curve together" > Equlibrium...look at the child-nodes (concept, definition, graph). shit should be really easy on the eyes like that.
7.6.1. also, you can set up the parent nodes beforehand, and then come back to them at a later time, while continuing with something else. which is cool.
7.7. Ch 5 needs to be understood more, and elaborated on a bit. Need to look into it as a separate study; could be very helpful.
7.8. this book can act as a primer to become accustomed to economics. but i should wait to get micro/macro and other economics stuff before i really start trying to grasp anything precise and stuff.
8. Book
8.1. Part I
8.1.1. Economics: The Science of How People Deal With Society
8.1.1.1. Chapter 1: Discovering What Economics Is and Why You Should Care
8.1.1.1.1. Concepts
8.1.1.1.2. Definitions
8.1.1.1.3. People
8.1.1.1.4. Notes
8.1.1.1.5. Chapter 1 Most Important Concepts
8.1.1.2. Chapter 2: Cookies or Ice Cream? Exploring Consumer Choices
8.1.1.2.1. Concepts
8.1.1.2.2. Definitions
8.1.1.2.3. Notes
8.1.1.2.4. Ch 2 MCI
8.1.1.3. Chapter 3: Producing The Right Stuff The Right Way To Maximize Human Happiness
8.1.1.3.1. Concepts
8.1.1.3.2. Definitions
8.1.1.3.3. Notes
8.2. Part II
8.2.1. Microeconomics: The Theories of Consumer and Firm Behavior
8.2.1.1. Chapter 4: Supply and Demand Made Easy
8.2.1.1.1. Concepts
8.2.1.1.2. Definitions
8.2.1.1.3. Notes
8.2.1.2. Chapter 5: Getting to Know Homo Economics, the Utility-Maximizing Consumer
8.2.1.2.1. Definitions
8.2.1.2.2. Concepts
8.2.1.3. Chapter 6: The Core of Capitalism: The Profit Maximizing Firm
8.2.1.3.1. Concepts
8.2.1.3.2. Definitions
8.2.1.3.3. Notes
8.2.1.4. Chapter 7: Why Economists Love Free Markets and Competition
8.2.1.4.1. Definitions
8.2.1.4.2. Concepts
8.2.1.4.3. Notes
8.2.1.4.4. Halts
8.2.1.5. Chapter 8: Monopolies: How Badly Would You Behave If You Had No Competition?
8.2.1.5.1. Definitions
8.2.1.5.2. Concepts
8.2.1.5.3. Notes
8.2.1.5.4. Halts
8.2.1.6. Chapter 9: Oligopoly and Monopolistic Competition - Middle Grounds
8.2.1.6.1. Definitions
8.2.1.6.2. Concepts
8.2.1.6.3. Notes
8.2.1.6.4. Halts
8.3. Part III
8.3.1. Applying the Theories of Microeconomics
8.3.1.1. Chapter 12: Taking the Pulse of Health Economics and Finance
8.3.1.1.1. Definitions
8.3.1.1.2. Concepts
8.3.1.1.3. Notes
8.3.1.1.4. Halts
8.3.1.2. Chapter 11: Market Failure - Asymmetric Information and Public Goods
8.3.1.2.1. Definitions
8.3.1.2.2. Concepts
8.3.1.2.3. Notes
8.3.1.2.4. Halts
8.3.1.3. Chapter 10: Property Rights and Wrongs
8.3.1.3.1. Definitions
8.3.1.3.2. Concepts
8.3.1.3.3. Notes
8.3.1.3.4. Halts
8.4. Part IV
8.4.1. Macroeconomics: The Science of Economic Growth and Stability
8.4.1.1. Chapter 13: Measuring the Macro-economy
8.4.1.1.1. Definitions
8.4.1.1.2. Concepts
8.4.1.1.3. Notes
8.4.1.1.4. Halts
8.4.1.2. Chapter 14: Inflation Frustration - Why More Money Isn't Always A Good Thing
8.4.1.2.1. Definitions
8.4.1.2.2. Concepts
8.4.1.2.3. Notes
8.4.1.2.4. Halts
8.4.1.3. Chapter 15: Understanding Why Recessions Happen
8.4.1.3.1. Definitions
8.4.1.3.2. Concepts
8.4.1.3.3. Notes
8.4.1.3.4. Halts
8.4.1.4. Chapter 16:
8.4.1.4.1. Definitions
8.4.1.4.2. Concepts
8.4.1.4.3. Notes
8.4.1.4.4. Halts
9. Most Important Concepts
10. Glossary
10.1. T-Z
10.1.1. Total surplus
10.1.1.1. consumer surplus + producer surplus
10.1.2. Trade deficit
10.1.2.1. when imports exceed exports
10.1.3. Trade surplus
10.1.3.1. when exports exceed imports
10.1.4. Traditional economy
10.1.4.1. traditional economy is one in which production and distribution are handled along the lines of longstanding cultural traditions.
10.1.4.1.1. Example: in medieval Europe, you couldn't typically be part of the gov or attain high military rank unless you were born a noble
10.1.5. Trusts
10.1.5.1. in the 19th century cartels were called "trusts"
10.1.6. Util
10.1.6.1. one unit of happiness of satisfaction
10.1.7. Utility
10.1.7.1. Definition
10.1.7.1.1. unit of measure for satisfaction or happiness
10.1.7.2. types of utility
10.1.7.2.1. Marginal utility
10.1.7.2.2. Diminishing marginal utility
10.1.8. Variable costs
10.1.8.1. depends on revenue (production costs, labor wage costs for employees, etc.)
10.2. R-S
10.2.1. Rational expectations
10.2.1.1. explains how rational people change their behavior in response to policy changes in ways that limit their effectiveness of those changes
10.2.2. Real price
10.2.2.1. what you can trade to get a good or service, regardless of the price. (For example, a $10 steak in 2010 might cost you 1 hour of labor at McDonalds. In 2020 the same steak might cost you $20, but you 1 hour of labor might earn you the same steak.) (so in otherwords, in 2010, your wage was $10/hr, and in 2020, it was $20/hr, meaning the real price of the steak stayed exactly the same.
10.2.3. Recession (contraction)
10.2.3.1. period when an economy's output of goods and services declines
10.2.4. Recovery (expansion)
10.2.4.1. period of time when output of goods and services increases
10.2.5. Revenue
10.2.5.1. The total amount of money that a firm receives
10.2.6. Running a Profit
10.2.6.1. Revenue exceeds cost
10.2.7. Running a loss
10.2.7.1. Costs exceeds revenue
10.2.8. Shocks
10.2.8.1. unexpected bad events (terrorist attacks, natural disasters etc)
10.2.9. Short-Run Shutdown Condition
10.2.9.1. When a loss-making firm chooses to shut down production immediately, since, given their circumstances, the size of the loss that it would make by shutting down immediately is less than the size of the loss that it would make by continuing in operation and producing output until its fixed-cost contracts expire.
10.2.10. Socially Optimal Quantity
10.2.10.1. amount of output that maximizes benefits for society given its limited resources
10.2.11. Stable Equilibrium
10.2.11.1. The intersection of the supply and demand curve. It is stable because the supply and demand curve always gravitates to this point.
10.2.12. Statistical discrimination
10.2.12.1. using observations, cues, characteristics, etc of people to clump them into a certain demographic of people
10.2.13. Sticky
10.2.13.1. when prices are hard or slow to adjust
10.2.14. Subsidize
10.2.14.1. support (an organization or activity) financially.
10.2.14.2. To secure the assistance of by granting a subsidy.
10.2.15. Sunk-costs
10.2.15.1. costs that have already been made and which should therefore not affect your current and future decision making
10.2.16. Supply Curve
10.2.16.1. shows the minimum prices at which someone is willing to sell various amounts of a good or service
10.2.17. Supply Elasticity
10.2.17.1. Perfectly Inelastic Supply
10.2.17.1.1. Price has no effect on the quantity supplied.
10.2.17.1.2. Production cost is non-existent
10.2.17.2. Perfectly Elastic Supply
10.2.17.2.1. Production costs don't increase for additional product units supplied.
10.3. P-Q
10.3.1. Perfect Inflation
10.3.1.1. When the prices of all goods and services increase proportionally
10.3.2. Perfect competition
10.3.2.1. When a firm competes against many other firms in an industry, producing identical goods
10.3.3. Philanthropic
10.3.3.1. a person or organization) seeking to promote the welfare of others, esp. by donating money to good causes; generous and benevolent.
10.3.4. Planned expenditures
10.3.4.1. amount of money that households, businesses, government and foreigners would like to spend on domestically produced goods and services
10.3.5. Positive Demand Shock
10.3.5.1. When demand for goods and services increases after a shock
10.3.6. Positive externality
10.3.6.1. something that is detrimental or costly to a third party
10.3.7. Price system
10.3.7.1. a system where price serves as the signal to direct resources (ie: in market economies)
10.3.8. Price taker
10.3.8.1. Economists call firms under perfect competition "price takers" because they are forced to charge a fixed price for their product.
10.3.9. Producer surplus
10.3.9.1. the difference between what the producers actual costs and market equilibrium price (when its in the producer's favor)
10.3.10. Product differentiation
10.3.10.1. each firm in an industry produces a slightly different product than the others
10.3.11. Production possibilities frontier (PPF)
10.3.11.1. the line on the graph that divides the area into two parts... combinations of output that are possible to produce given your limited supply of labor (below the line), and those that are not possible to produce (above the line)
10.3.11.2. the curve shows your output combinations that are possible when you are productively efficient
10.3.11.2.1. above curve = not possible
10.3.11.2.2. below curve = inefficient
10.3.11.3. balanced
10.3.11.3.1. technology that increases ability to produce all goods equally
10.3.11.4. biased
10.3.11.4.1. technology that increases ability to produce certain goods more efficiently than others
10.3.12. Productively efficient
10.3.12.1. firms produce the services and goods at the lowest possible cost
10.3.13. Property right (ownership)
10.3.13.1. gives a person exclusive authority to determine how a productive recourse can be used.
10.3.13.2. poorly designed property rights generate perverse incentive to do bad things. pollution issues and species loss are direct results of poorly designed property rights.
10.3.14. Public goods
10.3.14.1. goods or services that are provided for the public
10.3.14.1.1. most people try to get the benefit without paying for it
10.3.15. Quantity Demanded
10.3.15.1. how much of something that is willing to be paid for given that every other factor is held constant
10.3.16. Quota
10.3.16.1. an official limit on the number or amount of people or things that are allowed
10.4. N-O
10.4.1. Natural monopoly
10.4.1.1. a monopoly that naturally becomes dominated by a single, low-cost producer. these monopolies produce output at a lower average cost per unit than competitive firms could.
10.4.2. Negative Demand Shock
10.4.2.1. when demand for goods and services decreases after a shock
10.4.2.1.1. example: decline in confidence in the economy that makes people want to save more and consume less.
10.4.3. Negative Marginal Utility
10.4.3.1. When you use so much of a product that it becomes displeasurable
10.4.4. Negative externality
10.4.4.1. something that is beneficial to a third party
10.4.5. Nominal price
10.4.5.1. what a good or service is priced as (which depends on the era. For example: A $1 burger may cost you $5 10 years from now, even if it is the exact same burger.
10.4.6. Nonexcludable
10.4.6.1. a nonexcludable good is a good that's hard to prevent non-payers from consuming the good. (ie: firework show.)
10.4.7. Nonrival
10.4.7.1. a nonrival good is a good that can be used by one person without diminishing its use for another person (ie: firework show)
10.4.8. Normal Goods
10.4.8.1. The goods that you would pay for if you were sufficiently wealthy
10.4.9. Oligopoly
10.4.9.1. only a few firms in an industry
10.4.9.1.1. in this situation, firms often make deals not to compete against each other so that they can keep prices high and make bigger profits
10.4.10. Opportunity cost
10.4.10.1. In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone, in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources. Assuming the best choice is made, it is the "cost" incurred by not enjoying the benefit that would be had by taking the second best choice available
10.4.11. Optimal allocation
10.4.11.1. optimal distribution (ie: of labor) that maximizes profit
10.4.12. Ordinal Utility
10.4.12.1. A system of ranking utility without number assignment (I prefer sunsets to brownies, I prefer chocolate to vanilla, etc...)
10.4.13. Own-Price effects
10.4.13.1. The change in quantity demanded relevant only to the individual product itself
10.5. L-M
10.5.1. Laissez Faire
10.5.1.1. a policy or attitude of letting things take their own course, without interfering.
10.5.1.2. synonymous with "pure market" in economics
10.5.1.3. A more moderate, more modern version of laissez faire says that gov should provide the institutional framework necessary for the market economies to function, and then it should get out of the way and let people make and sell whatever is demanded.
10.5.2. Law of demand
10.5.2.1. inverse relationship between price and quantity
10.5.3. Lobbying
10.5.3.1. The process of influencing public and government policy at all levels: federal, state, and local.
10.5.3.2. seek to influence (a politician or public official) on an issue.
10.5.4. Long-Run Shutdown Conditions
10.5.4.1. When a loss-making firm is better off waiting until its fixed-cost commitments have expired before shutting down production. They still make a loss, but they loss less than if they were to shut down immediately.
10.5.5. Macroeconomics
10.5.5.1. studies the economy as a whole
10.5.5.1.1. concentrates on factors such as interest rates, inflation, unemployment. studies economic growth and how gov try to moderate harm caused by recessions
10.5.6. Mandate
10.5.6.1. an official order or commission to do something. (ie: government mandate)
10.5.7. Marginal Cost
10.5.7.1. Change in total cost / Change in Quantity (of product output)
10.5.7.2. How much total costs increase when you produce one more unit of output. The marginal cost of one more unit of output depends on how much output has already been produced
10.5.8. Marginal Output (Marginal Product)
10.5.8.1. The amount of output or product sold due to variable X
10.5.8.1.1. Example: If a company has one worker, and he sells 50 products per day, and then you hire a second worker (variable X), and, combined with the first worker, they produce a total of 150 products per day, the second workers MARGINAL OUTPUT is 100 products.
10.5.9. Marginal Utility
10.5.9.1. Incrimental changes in total utility
10.5.10. Marginal cost pricing
10.5.10.1. method of regulating price such that the regulated price is set to where the marginal cost curve crosses the demand curve.
10.5.11. Market
10.5.11.1. a place where buyers and sellers come together to trade money for a good or service (can exist in cyberspace)
10.5.12. Market Failure
10.5.12.1. not providing what people want or providing too much or too little of something
10.5.13. Market Price
10.5.13.1. The price of the product in the market
10.5.14. Market Quantity
10.5.14.1. The amount of a product in the market
10.5.15. Market basket
10.5.15.1. an large, arbitrary collection of goods (used to measure inflation for example)
10.5.16. Market economy
10.5.16.1. almost all economic activity happens in markets; little gov-intervention
10.5.17. Market equilibrium quantity
10.5.17.1. amount of output when quantity supplied = quantity demanded
10.5.18. Market production
10.5.18.1. what happens when one individual offers to make or sell something to another individual at a price agreeable to both
10.5.19. Maximum output
10.5.19.1. the total amount of goods and services produced in the economy when everyone is forced to have a job (and is forced to work as long and hard as humanly possible.)
10.5.20. Microeconomics
10.5.20.1. focuses on individual people and individual business
10.5.20.1.1. individuals
10.5.20.1.2. business
10.5.21. Missing market
10.5.21.1. a situation where there is no market for a good or service.
10.5.22. Monetary policy
10.5.22.1. uses changes in the money supply to change interest rates in order to stimulate economic activity.
10.5.22.1.1. Example: if gov causes interest rates to fall, consumers borrow more money to buy things like houses and cars, thus stimulating economic activity and helping the economy grow faster
10.5.23. Monopolistic competition
10.5.23.1. a sort of hybrid between perfect competition and monopoly.
10.5.24. Monopoly
10.5.24.1. only one firm in an industry; no competition
10.5.24.2. they restrict output in order to drive up prices and inflate profits
10.5.24.2.1. this hurts consumers and may go on indefinitely unless the gov intervenes
10.6. E-K
10.6.1. Economic Profit
10.6.1.1. Takes into account both the money incurred in the business AND the opportunity costs incurred (the costs or profit that you make in the business RELATIVE to the other alternatives you had...for example, staying at your old job instead of opening a business.)
10.6.2. Economic model
10.6.2.1. mathematical simplification of reality focusing on important variables
10.6.3. Economics
10.6.3.1. science that studies how people and societies make decision that allow them to get the most out of the limited resources.
10.6.4. Elasticity
10.6.4.1. how changing one economic variable affects another
10.6.4.2. Perfectly Elastic Demand
10.6.4.2.1. When you buy a whole lot of something, or nothing at all.
10.6.4.3. Perfectly Inelastic Demand
10.6.4.3.1. When you will buy something at any cost.
10.6.5. Equilibrium Price
10.6.5.1. The price of the product in the market
10.6.6. Equilibrium Quantity
10.6.6.1. The amount of a product in the market
10.6.7. Excess Demand
10.6.7.1. When the price is set below the equilibrium price, thus too many consumers want the product, but the producers don't have the supply to meet their demands.
10.6.8. Excess Suplply
10.6.8.1. Allocative efficiency caused by a price that is set too high; consumers are not willing to buy all that is produced
10.6.9. Exchange Rate
10.6.9.1. The price of one country's currency expressed in another country's currency. In other words, the rate at which one currency can be exchanged for another.
10.6.10. Expenditure
10.6.10.1. the money that households pay to firms for goods and services
10.6.11. Externality
10.6.11.1. cost or benefit which affects a party who did not choose to incur that cost or benefit
10.6.12. Factors of production markets
10.6.12.1. money is exchanged to purchase or rend the land, labor, capital and entrepreneurship used in production
10.6.13. Financial markets
10.6.13.1. Financial markets are where people who want to lend money (savers) interact with those who want to borrow money (borrowers). In this market, the supply and demand for loans determine theinterest rate, which is the price you have to pay to get someone to lend you their money for a while. Because most governments run deficits (in other words, they're always in the hole) and have to borrow a lot of money, they're major players in the financial markets.
10.6.14. Fiscal policy
10.6.14.1. using increased gov spending or lower taxes rates to help fight recessions.
10.6.14.1.1. Example: if gov buys more goods and services, economic activity increases. In a similar fashion, if gov cuts tax rates, consumers end up with higher after-tax incomes, which, when spent, increase economic activity.
10.6.15. Fixed Costs
10.6.15.1. all costs independent of revenue (rent, loans, etc)
10.6.16. Frictional unemployment
10.6.16.1. the duration of unemployment for a person who wants a job (and the person can currently get a job in the economy), but is still searching.
10.6.17. Full employment output (abbreviated as Y*)
10.6.17.1. total amount of goods and services produced in the economy when everyone who want's a job has a job.
10.6.18. Good and service markets
10.6.18.1. people and the government buy the stuff that firms make
10.6.19. Gross domestic product (GDP)
10.6.19.1. value of all goods and serviced produced in a nation's economy in a given period of time, usually a quarter-year or a year
10.6.20. Health economics
10.6.20.1. study of how resources are allocated toward healthcare.
10.6.21. Health finance
10.6.21.1. the study of how healthcare is paid for
10.6.22. Hyperinflation
10.6.22.1. a large inflation ie: increase in price by 20-30% in a month
10.6.23. Keynesianism
10.6.23.1. favoring large government interventions rather than laissez-faire
10.6.24. Inflation
10.6.24.1. rate at which prices increase over time
10.6.25. Inferior Goods
10.6.25.1. The goods that you are forced to pay for due to a lack of wealth, when you would have bought better goods if you were more wealthy
10.6.26. Increasing returns
10.6.26.1. when an amount of return (output) you get for a given amount of input (ie, workers) INCREASES with each successive unit of input.
10.6.26.1.1. If one worker (input) produces 50 products (output), and the first and second workers combined produces 150 products, and the first, second and third workers combined produce 200 products, note the following: 1st worker = 50 marginal output 2nd worker = 100 marginal output 3rd worker = 50 marginal output It is said that the 2nd worker gives INCREASING RETURNS (an increase of 50) and the 3rd worker gives DIMINISHING RETURNS (decrease of 50 marginal output)
10.6.27. Income
10.6.27.1. the costs (in the form of money) that firms pay for the household's resources (factors of production -- land, labor, and capital)
10.7. C-D
10.7.1. Capital
10.7.1.1. Standard
10.7.1.1.1. Human-made machines, tools and structures that aren't directly consumed but are used to produce other things that people do directly consume.
10.7.1.1.2. Examples of "standard"capital
10.7.1.2. Human capital
10.7.1.2.1. definition
10.7.1.2.2. High human capital
10.7.1.2.3. Low human capital
10.7.2. Cardinal Utility
10.7.2.1. A number assignment to utility measurement
10.7.3. Cartel
10.7.3.1. a firm that colludes.
10.7.4. Collude
10.7.4.1. if oligopolies decide to collude, they'll both cut back on production to drive up prices and increase their profits. For producers, collusion is better than competition because it leads to profit that lasts as long as the firms keep colluding.
10.7.5. Command economy
10.7.5.1. all economic activity is directed by the gov
10.7.6. Commodity
10.7.6.1. Something useful that can be turned to commercial or other advantage
10.7.6.2. something that is bought and sold. : something or someone that is useful or valued.
10.7.7. Comparative advantage
10.7.7.1. refers to a country’s ability to produce a particular good with a lower opportunity cost than another country.
10.7.8. Competitive Free Market
10.7.8.1. markets in which numerous buyers freely interact with numerous competitive firms.
10.7.9. Constrained Optimization Problem
10.7.9.1. Maximizing happiness given limited recources.
10.7.10. Consumer surplus
10.7.10.1. the difference between what people actually pay and market equilibrium price (when its in the consumer's favor)
10.7.11. Continuous Good
10.7.11.1. non-discrete units: cooking oil, lemonade, etc.
10.7.12. Cross-Price Effects
10.7.12.1. The phenomena of a price change in one good affecting the quantity demanded of other goods
10.7.13. Dead-weight losses
10.7.13.1. anything that inhibits the market to reach the market equilibrium and produce market quantity.
10.7.14. Demand
10.7.14.1. how much money people are willing and able to pay for
10.7.15. Demand Elasticity
10.7.15.1. how much a the quantity demanded of something changes when the price changes
10.7.16. Depression
10.7.16.1. a really bad recession
10.7.17. Diminishing Marginal Utility
10.7.17.1. The phenomenon of utility decreasing with each successive consumption or use of a product
10.7.18. Diminishing returns
10.7.18.1. when each successive unit of input (ie, labor) brings with it a smaller increase in output than the previous unit of input
10.7.19. Discrete good
10.7.19.1. goods that come in whole quantities (cows, cars, etc)
10.8. A-B
10.8.1. Absolute advantage
10.8.1.1. refers to a country’s ability to produce a certain good more efficiently than another country.
10.8.2. Accounting profit
10.8.2.1. The profit where the only variables are the matters in the business itself.
10.8.3. Actual expenditures
10.8.3.1. expenditures equal to gross domestic product (GDP) (in other words, the actual, descriptive, amount of expenditures)
10.8.4. Allocate
10.8.4.1. To distribute according to a plan; allot
10.8.4.2. To set apart for a special purpose; designate
10.8.5. Allocative Efficiency
10.8.5.1. producing the goods and services that will make people the happiest, and producing them in the correct amounts
10.8.6. Antitrust laws
10.8.6.1. laws that break up monopolies and cartels to promote competition
10.8.7. Asset
10.8.7.1. something durable that isn't directly consumed but gives off a flow of services that you do consume
10.8.8. Asymmetrical information
10.8.8.1. when either the buyer or seller knows more about the quality of a good being negotiated/bargained
10.8.8.1.1. causes a lot of potentially beneficial economic transactions to never get completed
10.8.9. Average Fixed Costs
10.8.9.1. Fixed cost / Quantity (of product produced)
10.8.9.1.1. If a lemonade company has one lemonade juicer as their only fixed cost, and it costs $100, then the production cost per lemonade is $2.00 when 50 lemonades are produced, and $0.21 when 470 lemonades are produced.
10.8.10. Average Variable Costs
10.8.10.1. Variable Costs / Quantity (of product produced).
10.8.10.1.1. For instance, if one worker produces 50 bottles at a variable cost (labor wage) of $80, the average variable cost is $80/50 = $1.60 per bottle. If to workers together cost $160 in variable costs but produce 140 bottles total, the average variable cost is $160/140 = $1.14 per bottle.
10.8.11. Average cost pricing
10.8.11.1. method of regulating price where the price is set to where the average total cost (ATC) intersects the demand curve.
10.8.12. Average total cost
10.8.12.1. Average fixed cost + Average variable cost
10.8.13. Averse selection
10.8.13.1. When you do business with people you would be better off avoiding.
10.8.14. Balanced budrget
10.8.14.1. revenue = expenditures
10.8.15. Beauracracy
10.8.15.1. a system of government in which most of the important decisions are made by state officials rather than by elected representatives.
10.8.16. Breaking Even
10.8.16.1. Revenue equals costs
10.8.17. Budget deficit
10.8.17.1. expenditures > revenue
10.8.18. Budget surplus
10.8.18.1. revenue > expenditures
10.8.19. Business cycle
10.8.19.1. a cycle or recessions and recoveries