Economics Unit 1 Foundations

Unit 1 Foundations of Economics

• Economics: The study of how societies use limited resources to satisfy unlimited wants.
• Opportunity Cost: The value of the next best alternative forgone when a choice is made.
• Scarcity: The fundamental economic problem of unlimited wants exceeding limited resources.
• Production Possibility Curve (PPC): A graph depicting the maximum combinations of two goods or services an economy can produce with its available resources.

Demand

• Demand: The quantity of a good or service that consumers are willing and able to buy at various prices during a specific time period.
• Law of Demand: As the price of a good increases, the quantity demanded decreases, and vice versa, all other factors remaining constant.
• Factors of Demand: Factors that affect consumer willingness and ability to purchase a good or service. (Specific factors need the data)

Supply

• Supply: The quantity of a good or service that producers are willing and able to offer for sale at various prices during a specific time period.
• Law of Supply: As the price of a good increases, the quantity supplied increases, and vice versa, all other factors remaining constant.
• Factors of Supply: (Specific factors need the data)

Unit 2A + B: Elasticity + The Firm

• Elastic Demand: Demand is responsive to price changes.
• Inelastic Demand: Demand is relatively unresponsive to price changes.
• Perfectly Elastic Demand: Demand is infinitely responsive to price changes.
• Perfectly Inelastic Demand: Demand is completely unresponsive to price changes.
• Factors of Elasticity of Demand: (Specific factors need to be added).
• Revenue and Price Elasticity Relationships: Relationship between price changes and total revenue obtained

Unit 2: Elasticity + The Firm, continued

• Cross Price Elasticity: Measures the responsiveness of demand for one good to a change in the price of another good.
• Income Elasticity: Measures the responsiveness of demand for a good to a change in consumer income.
• Factors of Elasticity of Supply: (List factors)
• Applications of Price Elasticity (and misconceptions): (List the applications)

Unit 2: Corporations, Sole Proprietorships, partnerships, etc.

• Corporations and Characteristics: (Characteristics of Corporations listed, if present)
• Sole Proprietorship and Characteristics: (Characteristics of Sole Proprietorship listed, if present)
• Partnership and Characteristics: (Characteristics of Partnership listed, if present)
• Non-Profits and Characteristics: (Characteristics of Nonprofits listed, if present)

Unit 3: The Government

• Human Development Index (HDI): A composite index measuring a country's average achievement in key dimensions of human development.
• Gross National Happiness (GNH): A philosophical concept and development approach emphasizing happiness, health, education, good governance, and cultural preservation.
• Wage Determination (list): (List needed)
• Lorenz Curve: Depicts the distribution of income in an economy.
• Lorenz Curve Calculations: (Data needed for the calculations to be included)

Unit 4: Macroeconomics

• GDP vs. GNP: Gross Domestic Product versus Gross National Product.
• GDP (Income and expenditure approach): Methods for calculating Gross Domestic Product.
• Circular Flow Model: A diagram illustrating the flow of goods, services, and money in an economy.
• Types of employment:(List)
• Inflation: A sustained increase in the general price level of goods and services in an economy over a period of time.
• Consumer Price Index (CPI): A measure of the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.
• Fiscal Policy: Government policies concerning taxation and expenditure for economic stabilization.
• Expansionary Fiscal Policy: Involves increased government spending and/or tax cuts to stimulate the economy during a recession.
• Contractionary Fiscal Policy: Involves decreased government spending and/or tax increases to cool down an overheating economy.

Unit 3 + Unit 4 (Continued)

• Public Goods: Goods that are non-excludable and non-rivalrous.
• Horizontal Merger: Combination of two or more firms in the same industry.
• Vertical Merger: Combination of companies at different stages of production.
• Conglomerate: Combination of companies unrelated in various industries.

Types of Market Structures

• Perfect Competition: (Characteristics of perfect competition include number of buyers and sellers, type of product sold, barriers to entry, and market power)
• Monopoly: (Characteristics of monopoly include number of buyers and sellers, barriers to entry, and market power)
• Monopolistic Competition: (Characteristics of monopolistic competition include number of buyers and sellers, type of product sold, barriers to entry, and market power)
• Oligopoly: (Characteristics of oligopoly include number of buyers and sellers, type of product sold, barriers to entry, and market power)

The Firm

• Revenue: Total income from sales.
• TC: Total Cost
• TVC: Total Variable Cost
• TFC: Total Fixed Cost
• ATC: Average Total Cost
• AVC: Average Variable Cost
• AFC: Average Fixed Cost
• MC: Marginal Cost
• MR: Marginal Revenue
• Profit: Firm's financial gain
• Break-even formula: (List)
• Long Run Curve and Situation: (List information on this)
• Law of diminishing returns: (List)

Please note that some sections are marked "specific factors need data". This means I need the relevant data (like lists of factors) to completely fill out that section.