Chapter 1-3 exam Flashcards

1
Q

the social science concerned with efficient use if scarce (limited) resources to maximize the satisfaction of people’s wants

A

economics

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2
Q

3 decisión makers?

A

household, government, and businesses

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3
Q

4 resource categories/ 4 factors of production

A

land, labor, capital (physical & financial), & entrepreneurship (supply creates its own demand)

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4
Q

2 efficiencies

A

least cost (productive efficiency)
most wanted (allocative)

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5
Q

Satisfaction = ?

A

happiness or utility

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6
Q

we assume that people are…?

A

rational (not random) maximizers

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7
Q

scientific method to quantify economic behaviors steps;?

A
  1. an issue/ problem
    2.a hypothesis
  2. a theory
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8
Q

the theory for the u.s applies to all other countries & times

A

Principle/ law

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9
Q

a model?

A

a set of principles/ laws

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10
Q

the process or finding the explanations to the problem ( based on facts; “what is”

A

theoretical economics

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11
Q

the process of using the theoretical findings to create the solutions to the problem (based on value judgment; “what it ought to be”)

A

policy economics

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12
Q

a study to aggregate (national level) decisions

A

macroeconómics

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13
Q

a study of a specific (a subset of the national level) decision

A

microeconomics

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14
Q

equation of a straight line

A

y = a + b*X

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15
Q

y is…

A

dependent

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16
Q

x is….

A

independent

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17
Q

a is the….

A

constant term or vertical intercept on a graph

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18
Q

b is the….

A

slope or impact of x on y

19
Q

ceteris paribus is…

A

holding all other things unchanged

20
Q

a more general equation..?

A

y= a + b1 + x1 + ( b2 + x2 + b3 + x3 +….. bn xn)

21
Q

a negative relationship or….

A

an inverse relationship

22
Q

a postive slope or….

A

a direct relationship

23
Q

the market system

A

capitalism

24
Q

command system

A

socialism/communism

25
Q

the ownership of resources;

A
  1. private ownership for the market system
  2. government for the command system
26
Q

the coordination methods;

A
  1. market and price for the market system
  2. central planning for the command system
27
Q

the u.s (hybrid system)

A

capitalistic: 80%
socialistic: 20%

28
Q

laissez- faire capitalism

A

pure capitalism ( no government)

hands off or let it be

29
Q

private property

A

increase efficiency; protect property

30
Q

four market structures;

A
  1. pure competition
  2. monopolistic competition
    3.oligopoly
    4.pure monopoly
31
Q

determination by consumers of the types and quantities of good and services will be produced wit the scarce resources of the economy

A

consumer sovereignty

32
Q

the “votes” that consumers and entrepreneurs cast for production of consumer and capital goods, respectively when they purchase those goods in product and resource markets

A

dollar votes

33
Q

productive efficiency

A

least cost efficiency

34
Q

creative destruction

A

ie. dvd vs video cassette

35
Q

circular flow model

A

no governments; pure capitalism

36
Q

the model (demand & supply)

A

analyzing one product a time ( one market at a time)

37
Q

the market price (p) and market quantity (q) determination

A

i. negotiations and agreements between buyers ( consumer p) and sellers ( producers p)— two conflicting market forces

38
Q

model assumptions like (pure competition—> infinite producers

A
  1. large numbers of independently acting producers
  2. large numbers of independently acting consumers
  3. standardized (average) products
39
Q

a schedule or cute that shows various amounts of a product ( Q d = quantity demanded) that consumers are willing and able to purchase at each of a series of possible prices (P) during a specified period of time

A

Demand (Market Demand)

40
Q

From individual buyers ( thus individual demand curves) to the specific…

A

market demand

41
Q

a schedule or curve showing the amounts of a product that consumers are willing and able to make available for sale (Q= quantity supplied) at each of a series of possible prices (P) during a specified time

A

Supply ( Markeg Supply)

42
Q

From individual producers ( this individual supply curves) to..

A

market supply

43
Q

producers respond to….

A

profits when P changes, assuming change cost = 0