Category: Education
Created by: Timmwilson
Number of Blossarys: 22
There are 5 major factors of production within microeconomics: Natural resources, Labor, Physical capital, Human capital, Entrepreneurship. These factors are important when determining production ...
An opportunity cost that does not involve a monetary payment. Ex: opportunity cost of the entrepreneur's time / opportunity cost of the entrepreneur's funds that could have been invested elsewhere.
Represents how the quantity of a product changes, as income for an individual or group changes. Formula: Ied = % change in qty demanded / % change in income. Income elasticity is positive for normal ...
A good for which an increase in income directly relates to a decrease in demand for that good.
The 'face value' amount of money, aka the stated value. Nominal values are not adjusted for inflation.
A good for which an increase in income directly relates to an increase in demand for that good.
(Ed)A function of demand for which as the price increases or decreases, the demand of the product changes. Ed=abs(%change in quantity demanded/%change in price). inelastic<1. unit elastic=1. perfectly ...
By: Timmwilson