Changes

===Easy===

===Easy===

*definitions: economics, competition, efficiency, microeconomics (the study of individual “micro” market decisions, companies, consumers)

*'''definitions''':  

*scarcity (when "wants" exceed free availability of the good; scarcity is what makes economics meaningful)

**economics

*opportunity cost

**competition

*transaction cost

**efficiency

*rational economic action

**microeconomics (the study of individual “micro” market decisions, companies, consumers)

*P (price) & Q (quantity or output)

*'''scarcity''' (when "wants" exceed free availability of the good; scarcity is what makes economics meaningful)

*graphing supply and demand curves (with P on y-axis, and Q on x-axis)

*'''opportunity cost'''

*supply meets demand: this defines the market price and quantity in a free, competitive market

*'''transaction cost'''

*demand side

*'''rational economic action'''

*Law of Demand: when price goes up, then demand goes down.  YOU MUST USE THIS LAW.

*'''P (price) & Q (quantity or output)'''

*equilibrium

*'''graphing supply and demand curves''' (with P on y-axis, and Q on x-axis)

*supply side

*'''supply meets demand: this defines the market price and quantity in a free, competitive market'''

*concept of a "firm" = company = supplier = seller

*'''demand side'''

*"inputs" into production by a firm

*'''Law of Demand:''' when price goes up, then demand goes down.  '''YOU MUST USE THIS LAW.'''

*fixed costs (FC) (these are costs that do not vary with a company’s output.  Examples: rental payments, taxicab license fee)

*'''equilibrium'''

*variable costs (VC) (costs that do vary directly with output.  Examples: fuel, labor)

*'''supply side'''

*marginal benefit of a firm’s output decision for producing one more Q: marginal benefit is P (price it is sold at)

*'''concept of a "firm"''' = company = supplier = seller

*stated another way: point at which firms sell their goods (where MR=MC)

*'''"inputs" into production''' by a firm

*utility

*'''fixed costs''' (FC) (these are costs that do not vary with a company’s output.  Examples: rental payments, taxicab license fee)

*net benefits (excess of benefits over costs)

*'''variable costs''' (VC) (costs that do vary directly with output.  Examples: fuel, labor)

*substitutes

*'''marginal benefit''' of a firm’s output decision for producing one more Q: marginal benefit is P (price it is sold at)

*complements

*stated another way: '''point at which firms sell their goods (where MR=MC)'''

*accounting profit (total revenue minus explicit cost)

*'''utility'''

*economic profit (total revenue minus both explicit and implicit costs)

*'''net benefits''' (excess of benefits over costs)

*short run (period when only some inputs are increased in order to increase output; e.g. overtime)

*'''substitutes'''

*long run (period when any and all inputs are increased to increase output; e.g., build new stadium)

*'''complements'''

*time is money

*'''accounting profit''' (total revenue minus explicit cost)

*inflation, CPI (consumer price index for a "basket" of basic goods, in order to measure inflation)

*'''economic profit''' (total revenue minus both explicit and implicit costs)

*Gresham's Law (bad drives out good)

*'''short run''' (period when only some inputs are increased in order to increase output; e.g. overtime)

*'''long run''' (period when any and all inputs are increased to increase output; e.g., build new stadium)

*'''time is money'''

*'''inflation''', CPI (consumer price index for a "basket" of basic goods, in order to measure inflation)

*'''Gresham's Law''' (bad money drives out good)

===Medium===

===Medium===