Econ 1 important concepts

Normative analysis

The most valuable alternative that must be given up to engage in an activity

Producing most of a good/service using same amount of resources

Producing a good/service at a lower opportunity cost than competitors

Consumer surplus will show up in a triangle/rectangle

Producer surplus shows up in a triangle/rectangle

With a price floor, consumer surplus is

With a price floor, consumer surplus is located

With a price ceiling, producer surplus is

With a price ceiling, producer surplus is located

The sum of consumer and producer surplus

Additional in economics is...

Additional cost to a firm for producing one more unit of a good/service

To effect market outcome and be binding, a price floor must be

To effect market outcome and be binding, a price ceiling must be

Producing a good/service at the lowest possible cost

When every good/service produced up to point where the last unit provides marginalbenefit=marginal cost

In which the gov't provides quantitative limits on pollution or requiring firms to install pollution control devices

private cost + external cost =

An increase in the price of an input causes the supply curve to shift to the

An increase in productivity causes a supply curve shift to the

An increase in the price of a substitute in production causes a supply curve shift to the...

an increase in # of firms in the market causes supply curve to shift

an increase in the expected future price of a product causes the supply curve to shift

An increase in income causes a demand curve shift to the

an increase in income for an INFERIOR good causes a demand curve shift to the

An increase in the price of a substitute good causes a demand curve shift to the

An increase in the price of a complementary good causes a d-curve shift to the

a change in taste for a good causes a demand curve shift to the

population increases cause a d-curve shift to the

An increase in an expected future price for a good causes a d-curve shift to the

The market based approach to pollution by government is

Cap-and-trade is

The PPACA provision requiring everyone to have health insurance or pay a fee

THE PPACA provision made in hopes that private insurance companies will compete

The PPACA mandate requiring every firm with 200+ employees to offer health care automatically

The PPACA provision requiring insurance companies to participate in high-risk pools so patients with pre-existing conditions can be insured

PPACA did this for Medicaid

To reduce medical feels for Medicare patients, PPACA created

Taxes that help pay for PPACA:

When will PPACA be fully implemented?