Vocabulary
Demand: The number of commodity demand functions given to consumers in a certain period of time and the price level of commodities that they may be willing and able to buy.
demand function: the relationship between quantity and demand of commodities affected by various factors.
demand table: a series of figures shows the quantity of required commodities at different price levels and the relationship with various corresponding commodity price levels.
demand curve of commodities: draw a curve according to the plane plot of the combination of commodity demand table and demand at different prices.
supply: the goods supplied are the quantity of goods that are willing and able to be sold by enough manufacturers at a certain price for a period of time.
supply function: there is a one-to-one relationship between the supply of a commodity and the price of the commodity.
supply table: the relationship between commodity prices and commodity supply, corresponding to the numerical sequence table of various prices.
commodity supply curve: the plane curve drawn on the curve is based on the combination-supply in the commodity supply table with different prices.
balance: in the most general sense, it refers to the economic matters related to the interaction of relatively static state variables under certain conditions.
equilibrium price: the market demand of commodities is equal to the price supplied by the market. The number of price levels in which supply and demand are balanced is equal to what is called the equilibrium quantity.
change of demand: the quantity change of commodity demand caused by the price change of a commodity when other conditions remain unchanged.
changes in demand: changes in commodity prices and quantities under the same conditions, and changes in the demand for bulk commodities due to other factors.
, supply change: the change in the supply of a commodity caused by the price change of a commodity, other things being equal.
changes in supply: changes caused by the price of a commodity, changes in the quantity of goods supplied under the same conditions and other factors.
international trade theory: under other conditions, the change of demand leads to the change of equilibrium price and quantity in the same direction, and the change of supply equilibrium price leads to the change of balance in the same direction when it is in the opposite direction.
The main characteristics of economic theory's realistic economic affairs and internal relations and abstract-based systematic description of realistic economic things: an overview.
economic model: the theoretical structure used to describe the relationship between economic variables.
exogenous variables: known variables are determined by factors outside the model, which are established in the model according to external conditions.
description of endogenous variables in the model system.
exogenous variables and endogenous variables, endogenous variables determined by exogenous variables and unexplained model systems.
the values of parameters: are usually the same? And it can also be understood as a constant variable.
Flexibility: In general, as long as there is a functional relationship between two economic variables, we can use elasticity to express the sensitivity of the response of the dependent variable.
Elasticity coefficient = change proportion of dependent variable ÷ variable proportion
Elasticity of price demand: the response degree of commodity price change due to the change of demand in a certain period of time. Or, the percentage change in a certain period of time, due to the demand for goods, the price of goods changes.
demand of price arc elasticity: the change of demand and the degree of reaction between two points on the commodity demand curve of price change. Simply put, it represents the elasticity between two points on the demand curve.
price elasticity of demand: when the variation between two points on the demand curve tends to infinity, point elasticity is used to represent the price elasticity of demand. In other words, it means that the demand curve at a point changes in response to price changes.
demand of cross-price elasticity: the degree to which the price change of a product responds to the demand change of a commodity within a certain period of time. Or the percentage of change, the demand for another commodity caused by the price change of one percent of the commodity in a certain period of time.
Substitute: Two commodities can be substituted for each other to meet the wishes of consumers. It is claimed that there is a substitution relationship between two commodities, and the substitutes of these two commodities. Products.
complementary products: if two commodities must be used at the same time to satisfy consumers' wishes, then there is a complementary relationship between the two commodities and the complementary commodities of the two commodities. Income elasticity
demand: it means the change of quantity, the goods whose income is in a certain period, and the degree of response to the change of consumers' demand.
normal commodities: the demand and income of commodities changing in the same direction. It can be further divided into necessities and luxuries.
fake and inferior commodities: the demand and income of commodities change in opposite directions.
elasticity of supply price: the response degree of a given cycle change to the commodity price change of the supplied commodities. Or the percentage of change, the% of the goods caused by the price change of the goods supplied in a certain period of time.
the arc-shaped elastic supply of price: the supply of a commodity in response to the change between two points of the supply curve.
elasticity of supply price: a little flexibility in the supply curve of a commodity.
Engel's Law: The proportion of food expenditure in a family or a country increases with the decrease of income. In order to express the concept of elasticity: for a family or country with a higher level of wealth, the income elasticity of small-scale food expenditure, on the contrary, the greater.
chapter utility theory
practical tools: the ability evaluation of people whose goods satisfy their desires, or the level of satisfaction of consumers in consumer goods and public utilities.
a unit of measurement for the utility of public utilities.
total utility (TU): the total utility that consumers get from consuming a certain number of goods in a certain period of time.
marginal utility (MU): the increment of a unit's commodity consumption by consumers in a certain period of time.
marginal quantity: indicates the change of the dependent variable caused by the change of unit parameters of quantity.
the independent variable of the change of marginal quantity
the law of diminishing marginal utility: in a certain period of time, under the condition that the consumption of other goods remains unchanged, from the continuous increase of each unit of goods, the goods consumed by consumers are increased. The marginal utility of the utility increment that consumers get is decreasing.
consumer equilibrium: study the limited monetary income distribution of individual consumers when purchasing various commodities, so as to obtain the maximum benefit.
demand price of goods: the highest price that consumers are willing to pay, a certain amount of goods in a certain period of time.
consumer surplus: the difference between the highest paid total price and the actual paid total price is that consumers are willing to buy a certain number of goods.
indifference curve: indicates the consumer preferences of all two commodities with the same combination. Or, it is considered to be a product with the same level of utility or satisfaction of all combinations that can be brought to consumers.
utility function: a specific commodity combination, based on the utility level of consumers.
utility function: the utility function of the corresponding indifference curve.
marginal substitution rate (MRS): on the premise of increasing one unit of goods, the consumption of another commodity that needs to be abandoned by the public utility consumers who maintain the same level of consumption.
law of decreasing substitute goods: goods that keep the same utility level and increase consumption under the condition of marginal tax rate. Consumers of this commodity are interested in all units. Need to give up the reduction of consumption of another commodity.
perfect substitute: the substitution ratio between two commodities is fixed.
a completely complementary product needs a fixed proportion to use these two commodities at the same time.
Budget line: also known as constraint, consumption possibility line and price line. It is said that under the given conditions of consumers' income and commodity prices, consumers with total income can buy various combinations of two commodities.
Equilibrium condition of maximizing consumer utility: A certain budget constraint, in order to achieve the maximum benefit, consumers should choose the best commodity combination, so that the marginal tax rate ratio of the two substituted commodities is equal to the price of these two commodities.
compensation budget line: when the commodity price changes, the actual income level of consumers is a poem, which is an analysis tool to keep the actual income level of consumers unchanged with the assumed monetary income increase or decrease.
the change of real income level caused by the change of commodity price in income effect, and thus the change of real income level caused by the change of demand for bulk commodities.
substitution effect: the relative price of commodities caused by the changing commodity price changes, which in turn causes the relative price changes of commodities in demand.
total utility = income effect+substitution effect
uncertainty: economic actors can't accurately know the results of some decisions in advance, or as long as there are more than one actor who decides the possible economic results, it will produce uncertainty.
Risk: The consumer's decision-making has certain behaviors and knows various possible outcomes. If the consumer knows the probability of various possible outcomes, you can call this uncertain risk.
The ability of producers (manufacturers, enterprises) to make a unified production decision is a single economic unit.
transaction cost: as a cost contract.
production function: the number of various factors produced in a certain period of time, which can be used in production and produce the maximum output under the same technical level.
fixed substitution ratio production function: the substitution ratio between any two production factors is fixed at each production level.
production function of fixed proportion input: the ratio between any input to factors is fixed at each production level.
short-term: the only production time to adjust the quantity of all production factors. The output with at least one factor is a fixed time period.
long-term: producers can adjust all factors of the production time cycle.
the total output of labor TP is the highest output corresponding to the labor input with certain variable factors.
the average rate of return of labor force refers to the average labor input and output per unit of variable factors.
The marginal product of labor. The increase of unit variable factor labor input means increasing production.
The marginal income of continuous and equal variable factors of production decreases: this phenomenon widely exists in production: under the same technical level, in the process of adding other factors of production, when the input of such variable factors of production is less than a certain value, the marginal products of the added elements increase with the same amount of one or more contents; When this variable factor is added, the continuous input of elements exceeding a specific value is increased, so as to increase the marginal product decline of input. Therefore, marginal products will inevitably show a downward function in the end.
the different combinations of the trajectories of the income curve and the inputs of two production factors will produce the same rate of return under the same technical level.
marginal substitution rate increases the input of one element by a certain amount and decreases the input of another element while maintaining the same production level.
marginal rate of technical substitution's law of decline: the condition of keeping the production level unchanged, when one factor, production input, increases, each unit's production factor can replace another, and the number of production factors is decreasing.
cost line: mature cost, and establishes various digital combination trajectories of two production factors that manufacturers can buy under the condition of production factor prices.
isoline: the locus of isoyield line of point group with equal marginal rate of technical substitution of these two factors.
extension line: the price of the production technology and other conditions of the production factors remain unchanged. If the cost of the enterprise is changed, other cost lines will shift, and changing the profit curve of the enterprise will cost a series of different production balances, and the extension lines of these production balance tracks are tangent lines.
(the extension line must be diagonal)
Opportunity cost of chapter cost theory: the opportunity to produce a unit. The cost of a commodity is that the producer with the highest income gives up using the same production factors and can use it for other production purposes.
in the production process, the amount of money invested by an enterprise accounting for costs and expenses is reflected in the accounting books of the enterprise.
significant costs: factors of production owned by other manufacturers purchased or leased, and actual expenditures of factors of production in the market.
hidden cost: the total price of production factors used by the enterprise itself in the production process. (Because the cost must also pay the opportunity cost of getting other uses according to its own factors of production, the enterprise with the highest income, otherwise, the enterprise that the manufacturer has transferred the factors of production has obtained higher profits).
economic benefits: sales revenue and total cost, also known as the difference between excess profits.
normal profit: the manufacturer's own incentive to start a business.
Short-term fixed cost (FC): the constant factor paid by the supplier, the price paid in the short term, the change that it will not change, the total cost of production, and the long-term variable cost (VC): the salary of the manufacturer who produces a certain amount in the short term, the variable element of VC change and output change. Total cost (TC) is the total cost paid by the manufacturer, which is all the production factors in a short time for producing a certain amount of products. The average fixed cost (AFC) is the constant production cost and the average consumption per unit output in the short term. AFC = FC/Q, legal change: AFC with a small output has been declining, and the decline is fast and then slow. Average variable cost (AVC) refers to the average variable cost of a manufacturer in a short period of time, which is used to produce each unit output. Average total cost (AC) is the total cost of producing a unit of consumption in a short period of time. The marginal cost (MC) is the increase in the production cost caused by the manufacturer in a short period of time.
Long-term total cost (LTC) Changes and changes in LTC production. When the output is zero, whether there is a change trend of total cost and an increase in output also increases rapidly, then increases slowly, and finally increases rapidly (compared with short-term total cost). Long-term average cost (LAC): The manufacturer with the lowest total long-term average production cost. Long-term marginal cost (LMC): The increase of production increment with the lowest total long-term cost of the manufacturer.
The scale of the internal economy of the economy began to expand production, and the 2-pound performance of manufacturers that expanded the scale of reproduction was improved. Uneconomical scale (external economy): When the production expands to a certain scale, manufacturers will continue to expand the production scale, which will be an economic recession.
Chapter VI Perfect Competition Market
Market: some forms, organizations or institutional arrangements in which buyers and sellers can mutually determine their transaction prices.
market: perfect competition market, monopolistic competition market, oligopoly market, monopoly market
industry: commodity market of production, and all suppliers provide the whole commodity.
perfectly competitive market: market structure that does not charge any obstacles or interference.
sales revenue: the revenue of the manufacturer.
total revenue (TR): does the manufacturer sell a certain product at a certain price? All the income earned.
average revenue (AR): the revenue of suppliers of each unit product.