ECON 6-7 Flashcards
These are the individual characteristics of each particular industry in our economy.
Market Structure
In a Perfect Competition, what is equal?
Price is = to Demand
This refers to a market situation where a relatively large amounts of sellers selling products that may not be identical
Monopolistic Competition
This is the structure when there are few large firms producing a homogeneous or differentiated product that are dominated or much needed by the market, characterized by few players and dominated by many firms and small number of large producers.
Oligopoly
These are payments by the government for which no current goods and services are produced/received and henceforth not included in Government Purchases.
Transfer Payments
This means that the proportion of total market sales held by the top number of firms accounts for a huge percentage of all sales in the industry.
Concentration Ratio
The demand curve of products under perfect competition are perfectly _____ and should have an output of what?
Perfectly Elastic and should produce an output where MR=MC
This structure has a kinked demand curve
Oligopoly
This is the total wage, salaries and etc. of the employed and self employed of most economies and this comprises two thirds of the total GDP
Labor Income
The demand curve of products under monopolistic competition is?
Elastic
This is any tangible asset usually bought or invested on by an organization for the purpose of producing goods and services.
Capital Goods
This is the difference between exports and imports
Net Exports
This is the spending by firms on final goods and services, primarily capital goods.
Investment
The 4 categories of GDP players are?
Household Firm. Government, Foreign Sector
This is the spending by households on goods and services, and constitutes the largest share of the nation’s output.
Consumption Expenditure
These are the final goods and services bought by the national government and local government units.
Government Purchases
Meanwhile this is the total payments made to owners of physical capital, such as rent, royalty fees, and is equal to 1/3rd of the total GDP
Capital Labor
This is the total market value of all final goods and services produced within a given period by factors of production owned by a country’s citizens regardless of where the output is produced.
Gross National Product
What is Real GDP and Nominal GDP?
Its just a frame of reference when doing calculations, when there is a base year to base prices new and old prices, then it’s real GDP
But if the prices are taken from current year then it’s nominal
