Read the summary and the most important questions on Essentials of economics | 9780273722519 | John Sloman, Dean Garratt.

• 2 Markets, demands and supply

  This is a preview. There are 11 more flashcards available for chapter 2
  Show more cards here

• Why do the prices of fresh vegetables fall when they are in season and could aan individual farmer prevent the price fall?

  due to an increase in quantity the supply curve shift to the right which leads to a drop in price
  an individual farmer could only prevent this if he was the head of the local maffia and could effectively enforce a monopoly

• How do you measure GDP?

  To compare the output of one year minus the changes in prices that influence the GDP. when compared to another year will get you the rates of economic growth.

• assume that oil begins to run out and extraction becomes more exspensive

  we expect a slight drop in demand, make the demand curve shift to the left but a much bigger effect with the supply curve going to the left leading to a large increase in price

• Definition GDP & rate of economic growth

  GDP: value of output produced within a country, typically over a 12 month period
  Rate of Economic Growth: The percentage increase in output between two moments of time, typically over a 12-month period.

• Tell which way the curve shiftsa. new oilfields start productionb. The demand for central heating risesc. the price of gas falld. oil companies expect a rise in pricese. New techology decrease cost of oil refining

  a. supply curve right = price drop
  b. Demand curve right = price rise
  c. Suppley curve has already move right in this case
  d. supply drop moving to the left 
  e. increase in supply moving the curve to the right dropping the price
  
  
  

• 3 Markets in action

  This is a preview. There are 2 more flashcards available for chapter 3
  Show more cards here

• Draw destabilizing and stabilizing speculation

  hint you need 3 D lines and 2 S lines. ans on pg 73

• Price Elasticity give examples of thing with a low price elasticity

  Health care
  Food (as a whole)

• Give a situation were the goverment set a minimun price and a maximum price

  Minium; EU crop protection
  Maximum: food in famine

  
  

  
  

• Cross elasticity of demand explain

  the responsiveness of demand of one product to the change of price to another product. like; cola- pepsi or bread and butter

  
  

• 4 8 Aggregate demand and the national economy

  This is a preview. There are 5 more flashcards available for chapter 4
  Show more cards here

• Name the four thing that together make aggregate demand

  C = consumer spending
  I  = investement
  G = Goverment spending

  X = eXport