BEC 05 Economics Flashcards
What is the definition of disposable income?
It is the apc or average propensity to save and average propensity to consume.
What is considered investing in macroeconomics?
investing into America, business, equipment to increase the overall growth of the economy.
What is an oligopoly?
small group of sellers with different products. Think phone companies.
What is a kinked demand curve?
other oligpohlys will lower prices if one does. if one increases, the others ignore.
What is the discount rate when it comes to the federal reserve?
it is the rate at which the central bank charges to the commercial banks.
Characteristics of a long term supply side
all inputs are variable
What is a circular combination?
companies that merge in unrelated industries.
What Is vertical or diagonal combination?
one could be processor the other a wholesaler
What is a vertical merger?
company merges with one of its suppliers.
What are lagging indicators?
prime rate rates charged by banks and loans outstanding. claims of unemployment.
price elasticity of demand
%change in quantity demand over %change in price
price elasticity of supply
%change in quantity supplied over % change in price
cross elasticity of demand or supply
% change in number of units of x demanded over % change in price of another good
income elasticity of demand
%change in number of units over % change in income
