As Economics Unit 1 Revision

In: Other Topics

Submitted By louis1
Words 1871
Pages 8
DEMAND
Demand: the quantity of a product that consumers are able and willing to purchase at various prices over a period of time
Market: where or when buyers and sellers meet to trade or exchange products.
It is important to remember that a want and demand are entirely different what consumer’s want they may not actually purchase.
Notional Demand: The desire for a product
Effective Demand: The willingness and ability to buy a product
The definition of demand assumes that the only factor affecting demand is price, economists refer to this as ceteris paribus
Ceteris Paribus: Assuming other variables remain unchanged
The relationship between demand and quantity is INVERSE
CONSUMER SURPLUS:
In every market there are always people who are willing to pay above what they actually pay.
Consumer Surplus: the extra amount that a consumer is willing to pay for a product above the price that is actually paid!
Diagram:

The determinants of Demand
Consumer Income
Real disposable Income: income after taxes on income have been deducted, state benefits have been and added AND the result is adjusted to account for changes in prices!
For Example:
If the money I receive from my job increases by 5% but prices also increase by 3% then my real income only increases by 2%

Therefore if consumer income increases then so does demand but if it falls demand falls because they lose the ability to pay for the good.

Normal Goods: goods for which an increase in income leads to an increase in demand, they also have a positive income elasticity of demand.

Inferior Goods: goods for which an increase in income leads to a fall in demand

It is difficult to generalise with inferior goods because it is different for different people.

The Price of other products:

The demand for a product can be affected by a change in price for another different product…...

Similar Documents

Economic Concepts Unit 1 Ip

...Unit 1 Individual Project Economic Concepts Lamar Dolby ECON220-1204B-04 Faime Moussavi October 7, 2012 Abstract Michelle and James are two people faced with opportunity cost decisions. They both can produce chickens and potatoes or one or the other. They both live in isolated regions but share the same resources. When faced with opportunity costs one has to decide what they have to give up in order to gain something they want. In the scenario Michelle can grow 200 potatoes per year or raise 50 chickens per year. James can grow 80 potatoes per year or raise 40 chickens per year. They both can gain and lose from doing both or choosing one and devoting all their time to that particular area. Opportunity Cost Introduction In today’s society we are faced with many different choices and decisions to make. Should I buy a new car today? Can I afford to purchase a new home? I am sick but I am going to work anyway. These questions and the choices made are all opportunity costs. Opportunity cost does not always have to deal with money or a number (2007). Opportunity cost is the choice you make or the alternative the choice you made. Simply put, “What you would have done if you had not made the decision you did”. We must understand that an opportunity only considers the next best alternative to an action (2007). Scenario; Michelle Michelle’s opportunity cost for producing only potatoes is, she would have to give up producing chickens. She could produce 200lbs. of......

Words: 944 - Pages: 4

Economics Revision Questions

...Q.1 Consider the following Cobb-Douglas production function for your company a. suppose both labor and capital inputs are 20 percent each, determine the approximate change in output LnQ=1.345LnL+1.5LnK ∆LnQ=1.345x20%+1.5x20%=57% b. What type of returns to scale characterizes this production function? How do you know? 1.345+1.5=2.845>1 so it is increasing return of scale c. Based on the production function, determine an expression for the marginal product of labor if 20 units of capital are employed. K=20 Q=L1.345201.5=89L1.345 MPL=∆Q∆L=89×1.345×L0.345=120L0.345 Q.2 Explain the meaning of a ‘long run average cost curve’. When is it downward sloping? (5 lines) A curve that defines the minimum average cost of producing alternative levels of output, allowing for optimal selection of both fixed and variable factors of production. when the curve is declining it indicates economies of scale. Q.3 True or False and why? “If it cost $20 on average to produce 100 units of x and it costs $20.20 on average to produce 101 units of x, then the marginal cost when producing unit #101 is 20 cents” It is wrong. MC=∆TC∆Q TC of 100 units is 20x100=2000 TC of 101 units is 20.2x101=2040.2 MC=2040.2-2000101-100=40.2 Q.4 Having just completed a class in “production and costs”, Rohan, the owner of Zee Industries, decided to pay his workers a wage equal to the value marginal product (w =MPL*P). He found out that his labour employment...

Words: 837 - Pages: 4

Unit 1

...NT1230 Unit 1 Lesson 1 1. The general public in the United States will be able to purchase all of the Windows 7 editions in retail stores except a. Windows 7 Starter, Windows 7 Home Basic, Windows 7 Enterprise. 2. The core module that provides all of the Windows 7 capability that isn’t language- or edition specific is called b. MinWin 3. When you copy a file to a library, Windows Explorer writes the file to the folder designated as the c. save location 4. To use federate search, you must download or create XML files for specific sites called d. Search connectors 5. The only operating system edition that you can upgrade in-place to Windows 7 Professional is e. Windows Vista Business 6. Upgrading a computer running Windows 7 Starter to Windows 7 Ultimate using Windows Anytime Upgrade requires _______megabytes of additional hard disk space. f. 0 7. To migrate a computer running Windows XP to Windows 7, you can use a utility called g. User State Migration Tool 8. The new Windows 7 feature that renders all of the windows on the desktop transparent when you mouse over the right end of the taskbar is called h. Aero Peak 9. The Windows 7 ______________ edition is only available in 32-bit version. i. Windows 7 Starter 10. The maximum amount of system memory supported by Windows 7 Enterprise is __________. j. Maximum RAM (32-bit) 4 GB ,Maximum RAM (64-bit) 192GB Shawn......

Words: 671 - Pages: 3

Psychology Unit 1 Revision Notes

...PSYCHOLOGY AQA A – UNIT 1 Attachment is an emotional bond between two people, it is a 2 way process that endures over time, serving the function of protecting the infant and leading to certain behaviours (seeking proximity, distress on separation, pleasure on reunion and general orientation of behaviour) There is a Primary attachment figure (PAF) EXPLANATIONS OF ATTACHMENT: LEARNING THEORY Learnt rather than inborn Classical: Association Proposes that food (UCS) naturally produces a feeling of pleasure (UCR). The feeder (NS) becomes associated with the food (UCS) when the infant is fed. The mother eventually produces the sense of pleasure associated with the food. Pleasure is now a Conditioned Response which causes attachment Operant: Reinforcement (DOLLARD AND MILLER 1950) When an infant if hungry, they feel uncomfortable and I drive is produced to reduce this discomfort. When the infant in fed, the drive is reduced and this produces a feeling of pleasure. The infant learns that the food is rewarding (Primary Reinforcer) and begins to recognise the person that provided the food (Secondary reinforcer). Attachment occurs because the infants seeks to be around the person that supplied the award. Evaluating learning theory Research by Harlow (1959) suggests attachment may not totally based upon the provision of food. Harlow removed baby rhesus monkeys from their mothers, and placed them into a cage. In the cage there were 2 wire mesh cylinders. One covered in......

Words: 6335 - Pages: 26

The a-1 Unit

... The A-1 Unit* I.Time Context: Months after the operation of the A-1 unit of a popular government agency II. Viewpoint Consultant III. Statement of the Problem * A-1 was not a formally established staff. * The allegiance of the members towards the A-1 unit. * Group complaints about the heavy workload/multitasking * Alex Marasigan and Tino Torres do not contribute their fair share of the task. * The unclear assignment between the mother unit and the A-1 unit. * Agency’s concern seemed emphasized mostly to production and less to people. * Muñoz doesn’t want them to see him as a pushy and domineering head. IV. Objectives * Whether to design the A-1 unit with permanent staff. * Whether another training seminar is necessary to recruit more members to the A-1 workforce. * Whether another refreshing course is necessary to put Marasigan, Torres, and the rest of the members back on track. * Whether the A-1 unit be treated and defined to have an independent power and authority with respect to personnel concerns. V. Areas of Consideration * Understaffed and overload of assignment * Group complaints about the heavy workload, bottlenecks, and prioritization of assignments that the staff receives both from the respective home bases and the A-1. * Ambiguity to distinguish leader’s power and authority. VI. Alternative Courses of Action * Establish A-1’s staff; Hire new employees and conduct training seminars that is necessary for......

Words: 520 - Pages: 3

Unit 1

...Edexcel BTEC Level 3 Subsidiary Diploma in Business Unit 2:Start date:Deadline date:Assessment feedback will be provided by:Assessor: | Business Resources | Unit Code:QCF Level 3:Credit Value:Guided Learning hours: | D/502/5409BTEC National1060 | Assignment 1 – ‘Human Resources’Purpose Learning OutcomesAfter completing this unit, you should: * Know how human resources are managed * know the purpose of managing physical and technological resources * Know how to access sources of finance * Be able to interpret financial statements.You are applying for a customer service job at the Tesco store in Ilkley. | Task 1Tesco are currently employing customer service staff for the store in Ilkley. Describe the recruitment documents Tesco should use. * Briefly describe what the recruitment process is. * Describe what a job advert is and how it is used at Tesco. * Describe what a job description is and how it is used at Tesco s. * Describe what a person specification is and how it is used at Tesco * Describe what an application form is and how it is used at Tesco. * Produce a Job description for the customer service job at Tesco * Produce a Person specification for the customer service job at Tesco (This provides evidence for P1) | Task 2You decided to apply for the position of customer service assistant at Tesco in Ilkley and have been short listed to attend an interview for the job vacancy. You take......

Words: 842 - Pages: 4

Unit 1

...Unit 1 VOCABULARY Text Muscle Binds (p. 3) virtue (n.), virtuous (adj.) to involve smb. in smth., be involved in/with, involvement (n.), involvement with/in strenuous (adj.) smugness (n.), smug (adj.) superiority (n.), superiority complex, superior (adj.), superior to smb. (opposite) inferiority (n.), inferiority complex., inferior (adj.), inferior to smb. lure (v), lure (n) eternity (n.), eternal (adj.) cripple (v.), cripple (n.) flourish (v.) humiliate (v.), humiliation (n.) fad (n.), passing fad drag (n.), real drag charity (n.), charitable (adj.) mortal (n., adj.) obsess (v.), be obsessed by/with smth. obsession (n.), obsession with smth terms (plural) in practical/political/economic terms, in terms of time/money/efforts Word Combinations to result from smth to result in smth apart from Expressions with “come” (p.7) Idiomatic expressions (p.8) Physical complains (p.18) Text How are your genes? (p. 19) span (n.), life span determine (v.), genetically/culturally/biologically determined, to determine + whether/why/who/what Text of the sample composition (p.30) benefit (v.), to benefit from, benefit (n.), to reap/receive benefit from, beneficial (adj.) test-tube (n.), test-tube baby controversy (n.), to create/cause/spark/stir controversy, controversial (adj.) affect (v.) hostility (n.), hostile (adj.) interfere (v.), interfere in/with abuse (v.), abuse (n.) ban (v.), ban (n.), ban on smth. One Man’s Meat is Another......

Words: 9212 - Pages: 37

Unit 1

...Unit 38: Business and the Economic Environment - Edexcel http://www.edexcel.com/.../Unit%2038%20Business%20and%20the%20... P4 explain how both fiscal and monetary policy decisions have affected a selected business. [IE]. M2 analyse the effects of fiscal and monetary policies for a. [DOC]Unit_39, Anon - VOCBUS http://vocbus.files.wordpress.com/2010/06/natunit39assignmentanon.doc Describe the effect on a selected business of variations in economic activity ... Outline how both fiscal and monetary policy decisions have affected a selected. [PDF]Unit 38: Business and the Economic Environment fc.nbvlc.org.uk/.../Unit%2038%20Business%20and%20the%20Economi... P4 explain how both fiscal and monetary policy decisions have affected a selected business. [IE]. M2 analyse the effects of fiscal and monetary policies for a. [DOC]GNVQ Part One ICT - BTEC Business btecbusiness.weebly.com/uploads/6/8/7/.../business_unit_38_btec_d.doc Analyse the implications of government policies for a selected business. D1 ... Explain how both fiscal and monetary policy decisions have affected a selected ... Explain how fiscal and monetary policy decisions have ... http://www.stuvia.com/.../explain-how-fiscal-and-monetary-policy-decis... 26 May 2014 - Explain how fiscal and monetary policy decisions have affected a selected business. Stuvia · United Kingdom · Ealing, Hammersmith and West ... How Fiscal Policy and Monetary Policy Affect the Economy......

Words: 404 - Pages: 2

Unit 1

...NT-1110 Unit 1 Assignment 1: Research and explain the basic components of a PC. Gilberto Canto Motherboard: Sometimes alternatively known as the mainboard, system board, planar board or logic board or colloquially, a mobo) is the main printed circuit board (PCB) found in computers and other expandable systems. It holds many of the crucial electronic components of the system, such as the central processing unit (CPU) and memory, and provides connectors for other peripherals. Motherboard specifically refers to a PCB with expansion capability and as the name suggests, this board is the "mother" of all components attached to it, which often include sound cards, video cards, network cards, hard drives, or other forms of persistent storage; TV tuner cards, cards providing extra USB or FireWire slots and a variety of other custom components. The motherboard is the core of the system. It really is the PC; everything else is connected to it, and it controls everything in the system. Central Processing Unit (CPU): Is the electronic circuitry within a computer that carries out the instructions of a computer program by performing the basic arithmetic, logical, control and input/output (I/O) operations specified by the instructions. The term has been used in the computer industry at least since the early 1960s.Traditionally, the term "CPU" refers to......

Words: 1814 - Pages: 8

Economics Revision

...Economics Basic Economic Problem- The basic economic problem is that there is not enough resources available to fulfil all of the customer needs and wants. This is called SCARCITY. Due to the problem of scarcity, it causes the problem of choice as there are unlimited amounts of want and a limited amount of resources available. This occurs in both a micro (individual/small business) environment and a macro (large business/global economies) environment. Opportunity Cost- The term opportunity cost means that an opportunity for one development has to be given up for another development. Businesses usually have to make this SACRAFICE. Opportunity cost tends to deal with the actual product or service rather than the money to provide this money or service. Supply and Demand Demand- The consumers have the willingness and ability to buy products from the companies that produce a product or service. Law of Demand: - If Prices rise then demand falls (Contracts.) If Prices fall then demand rises. (Extends.) Factors that affect Demand: * Consumer income * Tastes and Preferences * Prices of related goods and services * Expectations about future prices and incomes * Number of potential customers Supply- Producers of a good or service have the willingness and ability to provide consumers with their product or service. Law of Supply: - If price rises then supply increases (Extends.) If price falls then supply falls (Contracts.) Factors that affect supply: ......

Words: 412 - Pages: 2

Moodle Example Unit 1

...Unit 1: The Business Environment Unit code: Y/502/5408 QCF Level 3: BTEC National Credit value: 10 Guided learning hours: 60 Aim and purpose The aim of this unit is to give learners the fundamental knowledge of a range of business organisations, and the many factors that shape the nature of organisations operating in an increasingly complex business world. Unit introduction Learners new to the studying of business will already be familiar with organisations through having dealt with them as customers or employees. One of the aims of this unit is to help learners to build on these experiences and learn to ‘walk in the shoes’ of owners, stakeholders and managers of organisations. The unit introduces learners to a range of business activities. They will consider the purposes of different organisations and the influence of stakeholders and how businesses organise themselves through strategic planning and organisational structures. Learners will then explore the dynamic nature of organisations through studying the impact of external (political, legal and social) influences on business operations. Next, they will study the fundamental economic principles that impact on businesses. By studying two different business environments learners will gain some insight into how businesses operate in different parts of the world and how the development of a global marketplace impacts on all businesses. Learning outcomes On completion of this unit a...

Words: 4288 - Pages: 18

Economics Unit 4

...Edexcel A2 Economics Unit 4 The Global Economy This Answers document provides answers for the questions asked in the workbook. They are intended as a guide to give teachers and students feedback. Topic 1 Poverty and inequality in developed and developing countries Measuring poverty and inequality 1 A standard of living that fails to provide basic needs, such as food, shelter and clothing. (1 mark) Often measured by the number falling below a threshold level of income such as a $1.25 PPP a day. (1 mark) 2 The term refers to those who fall below a certain threshold income or poverty line. (1 mark) A standard of living that falls significantly below the majority. (1 mark) In the UK and EU, this is defined as those earning less than 60% of median income. (1 mark) 3 a Measures the percentage of households that experience overlapping deprivations in three dimensions: education, health and living conditions. (1 mark) A person who is ‘poor’ is deprived in at least 30% of the weighted indicators. (1 mark) b Used to measure absolute poverty in less developed countries (1 mark) and its variables are: the percentage of a population likely to die before the age of 40 years (1 mark); the percentage of people over the age of 15 years who are illiterate (1 mark); the percentage of children under the age of 5 years who are underweight (1 mark); the percentage of people without access to public and private services such as health care and clean water. (1......

Words: 17857 - Pages: 72

Econ 1 Revision Sheet

...off. Residential area of Longden Coleham developed on low lying floodplain. Flood peak reached 5.25 metres on 1st November 2000. During normal conditions the river in Shrewsbury flows at 50 cubic metres per second, during flood flowed at 250 cubic metres per second, x9 greater. Prone to flooding due to a large number of tributaries between source to Shrewsbury, meaning more water in the channel. Lies on impermeable rock. Impacts - Water breached the 2.9 metres bankfull level which meant flooding was extensive. - At times the town was effectively closed due to disruption of communications. Welsh - bridge an English bridge were closed for periods and flooding at the neck of the meander closed the road and disrupted rail travel, economic and social impacts. Properties forced to be abandoned, as floodwaters rose. Lower ground of Wakeman school was ruined after gallons of water swept through lower ground floor. Extensive damage to 220 houses in Shrewsbury. car parks submerged, and sports grounds and parks badly affected. Shopping centres cut off, Boots estimated a loss of £250,000 in sales, £975,000 in sales lost from M&S- £30,000 worth of food chucked away. 400 properties flooded by Reabrook, a small tributary that joins the River Severn along with a large discharge. Costs £7-8million, emotional stress, inconvenience suffered by residents of Shrewsbury. Management - Environment Agency secured £6million to help clear up and manage future floods......

Words: 648 - Pages: 3

Unit 1 Revision

...TOPIC 1 – THEORIES OF RELIGION 3 WAYS sociologists define religion Substantive, functional and social constructionists SUBSTANTIVE- focus on the content of religious belief such as belief in God or the supernatural (MAX WEBBER) defines religion as belief in the superior or supernatural power that is above nature and cannot be explained scientifically. Advantage- conform to a widespread views of religion as belief in God Disadvantage- defining religion in this way leaves no room for beliefs and practices. FUNCTIONAL- define in terms of the social or psychological functions it performs for individuals or society. (EMILE DURKHEIM) defines religion in terms of the contribution it makes to social integration, rather than any specific belief in God or the supernatural. An advantage of functional definitions are that they yare INCLUSIVE allowing us to include a wide range of beliefs and practices A disadvantage of functional definitions just because an institution helps integrate individuals into a group it doesn’t make it a religion. SOCIAL CONSTRUCTIONIST- take an interpretivist approach that focuses on how members of society themselves define religion, argue that its not possible to produce a single universal definition to cover all cases since in reality different individuals and groups mean very different things by ‘religion’ FUNCTIONALIST THEORIES OF RELIGION Functionalists see society as a system of interrelated parts or social institutions such as religion,......

Words: 1206 - Pages: 5

Unit 1

...Para 1). As of May 2014, Wikipedia is the world's sixth-most-popular website (Alexa Para 1) and is the largest general-knowledge encyclopedia online, with over 31.5 million articles, in 287 languages.(Stats Para 2.9) This paper will review the pros and cons of using Wikipedia as a valid resource for students and review resources available to Kaplan University students. The argument for using Wikipedia as a valid resource Wikipedia provides a good starting point to research a topic. It is a collaboration effort of many people contributing to the information instead of the writing of one person. Wikipedia builds a community of sharing knowledge since it is an open site accepting information from anyone. ‘It combines social networking with content offer opportunities for students to publish their findings, create historic maps, build digital portfolios and generate immediate feedback from a new kind if scholarly community. We should not simply evaluate these new networking communities. We should join them.” (Nix 2010 263) Articles on Wikipedia provide references to related printed works and include links to other web sites. These references are a good source to use for locating valid resources and additional detailed information about the topic in the article. Wikipedia articles tend to have the same accuracy rate as printed materials. Every article contains a link to its history, referred to as the page history. The page history is similar to the revision......

Words: 1530 - Pages: 7