Download Micro Unit 1 Key Terms

AP Micro
Micro Unit I Test Terms
Modules 46-63
Section 9 (Mod. 46-51) Terms
Section 10 (Mod. 52-57) Terms
Substitution Effect p. 458
Income Effect p.459
Price elasticity of demand p. 460
Cross-price elasticity of demand
p. 475
Income elasticity of demand
p.476
Price elasticity of supply p. 477
Excise Tax p. 499
Deadweight loss p. 506
Lump-sum tax p. 508
Diminishing Marginal Utility
p. 513
Optimal consumption rule p. 520
Accounting profit p. 531
Economic profit p. 532
Normal profit p. 534
Optimal output rule p. 537
Marginal cost curve p. 538
Fixed vs. Variable input p. 542
Short vs. Long run p. 542
Average total cost curve p. 553
Average variable cost curve
p. 553
Long-run ATC curve p. 561
Economies of scale p. 562
Characteristics/determinants of
the 4 market structures (general)
p. 567-575
Mr. Davey
Section 11 (Mod. 58-63) Terms
Perfect Competition
Break-even price p. 592
Shut-down price p. 593
Short-run market equilibrium vs.
long-run market equilibrium
p. 602
Monopoly
Single price monopolist p. 624
Price discrimination p. 624
Perfect (1st degree) price
discrimination p. 627
Profit maximizing quantity rule
Socially optimal price/quantity
Fair return/break-break even
price/quantity
Graphing Expectations:
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Illustrating a market at equilibrium, using supply and demand model, and account for an
excise tax and indicate areas of importance/key concepts (tax wedge, new market price,
price received by sellers, area of total revenue, area of producer revenue, where tax
burden lies)
Illustrate and analyze a domestic market subjected to a world price: identify quantify of
imports/exports, consumer/producer surplus
Illustrate the perfectly competitive marketplace, accounting for short-run events and
long-run corrections
Identify within the perfect competition model key price and quantity combinations
(break-even price, shut-down rule, area of total costs, area of total revenue, area of total
profits/losses)
Illustrate a monopoly, accounting for lump-sum and/or per unit taxes/subsidies
Identify within the monopoly model key price and quantity combinations (profit
maximizing quantity, price, elasticity ranges, socially optimal quantity, fair return
quantity, area of total cost, area of total revenue, area of total profits/losses, consumer
surplus, deadweight loss)