Exam (elaborations)
Econ 3020 Midterm Exam Questions answers latest update
- Course
- ECON 3020
- Institution
- University Of Virginia
Econ 3020 Midterm Exam Questions answers latest update
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Econ 3020: Midterm ExamEconomics
Study of how individuals and societies allocate resources
Managerial Economics
Application of economic principles to managerial decision-making
Time Value of Money
Concept that money available today is worth more than the same amount in the
future
Present Value
Current value of future income or cash flows, discounted to reflect the time value
of money
Future Value
Value of an investment or cash flow at a future date, taking into account the time
value of money
Net Present Value
Difference between the present value of cash inflows and the present value of
cash outflows
Profits
Financial gains made by a business
Accounting Profits
Total revenue minus total explicit costs
,Economic Profits
Total revenue minus total explicit and implicit costs
Total Profits
Sum of accounting profits and economic profits
Rivalries
Competitions or conflicts between individuals or groups
Consumers
Individuals who purchase and use goods and services
Producers
Individuals or businesses that create and supply goods and services
Total Value
Overall worth or importance of something
Marginal Value
Value of one additional unit of a good or service
Marginal Cost
Cost of producing one additional unit of a good or service
Net Value
Difference between total value and total cost
Interest Rate
Percentage charged or paid for the use of money
Present Value of Future Cash Flows
, Calculation of the current worth of future income or cash flows, taking into
account the time value of money
Implicit Costs
Opportunity costs that are not explicitly paid out, such as foregone profits or
wages
Accounting Profit
Total revenue minus total explicit costs
Economic Profit
Total revenue minus total explicit and implicit costs
Consumer Surplus
Difference between the maximum price a consumer is willing to pay for a good
and the actual price paid
Supply
Amount of a good or service that producers are willing and able to sell at a given
price
Demand
Amount of a good or service that consumers are willing and able to buy at a given
price
Cross Price Elasticity of Demand
Measure of the responsiveness of the quantity demanded of one good to a
change in the price of another good
Income Elasticity of Demand
Measure of the responsiveness of the quantity demanded of a good to a change
in consumer income
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