- •Why study economics
- •What are the ways economic knowledge help us in succeeding in our material welfare?
- •Scarcity and choice: the economic problem
- •What do people realize going through their lives?
- •What are economic goods and free goods?
- •Why do all economic units have to make their choices?
- •What does individual choice depend on?
- •What are governments and businesses limited by?
- •What problem does everyone in any society face?
- •What is scarcity?
- •Why does scarcity force all decision makers to arrive at best decisions?
- •How do economists explain the essential sense of scarcity?
- •What is the opportunity cost?
- •What are foregone earnings (заробітки, від яких відмовляються)?
- •Why should people compare benefits before making their decisions?
- •Why does the cost of doing something have nothing to do with spending money in most cases?
- •What are the two sides of opportunity cost?
- •Economics. Microeconomics vs. Macroeconomics
- •What is economics?
- •What economic issues does microeconomics do with?
- •What is macroeconomics?
- •What economic issues does macroeconomics look at?
- •What is the difference between positive economic statement and normative one?
- •What is positive economics concerned with?
- •What does normative economics deal with?
- •Factors of production
- •Economic systems
- •What are the three basic economic questions that every society must answers?
- •What is a command economy?
- •Who provides answers to the fundamental economic questions in a command economy? Why?
- •What is a market economy?
- •Who owns the means of production in a society with a market economy?
- •What are the essential elements of a market economy?
- •What is demand?
- •What factors alter consumer demand?
- •What does supply mean?
- •What does the law of supply state?
- •What is a supply schedule?
- •What is a supply curve?
- •What is the price elasticity of supply?
- •When supply is elastic?
- •What supply is called inelastic?
- •Market price
- •What is a price?
- •What is a price system?
- •What is a price for any commodity determined by in a free market?
- •What functions do prices perform?
- •Why do prices act as signals to buyers and sellers?
- •What is the producers’ main incentive?
- •Why does the price system determine each person’s income?
- •What is an equilibrium price?
- •What is excess supply?
- •What is a shortage and when does it develop?
- •What does a decrease in demand lead to?
- •What does an increase in supply result in?
- •Markets and market structures
- •What is oligopoly?
- •What are the key characteristics of oligopoly?
- •What is monopoly? Why does monopoly exist?
- •What is imperfect competition?
- •How does imperfect competition differ from perfect competition and monopoly?
What is monopoly? Why does monopoly exist?
Monopoly: One Seller. A monopoly is defined as a single firm producing unique products for which there are no close substitutes. A monopolist has the market power or complete control over the market price. A buyer who wants this particular product must either pay the monopolist’s price or do without it. Competing firms are unable to enter the market where a monopoly exists.
What is imperfect competition?
Imperfect Competition. Most of the nation’s economic activity occurs under conditions of imperfect competition. This market structure consists of industries and markets that fall in between two extremes of perfect competition and pure monopoly.
How does imperfect competition differ from perfect competition and monopoly?
Imperfect competition describes markets in which sellers have more freedom to determine prices than they have under perfect competition, but less than they have under monopoly.