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Economics > Econ Final > Flashcards

Econ Final Flashcards

1
Q

Definition of supply

A

The quantity of a good/service that a producer is willing/able to produce at a given price at a given time

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2
Q

Law of demand

A

As price falls, quantity demanded rises

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3
Q

Law of supply

A

As price rises, quantity supplied increases

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4
Q

Elasticity def

A

A measurement of responsiveness

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5
Q

Elasticity of demand def

A

Measures how much demand for a good/service changes when there is a change in the determinant

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6
Q

Price elasticity of demand def

A

Measuring how much quantity demanded of a good/service changes relative to a change in price

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7
Q

Unit elastic def

A

Price change is proportionate to quantity change

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8
Q

Inelastic def

A

Demand will remain regardless of price

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9
Q

Elastic def

A

Demand is perfectly responsive to price change

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10
Q

Cross elasticity of demand def

A

Change in quantity of one good/service is affected by change in price of another good/service

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11
Q

Income elasticity of demand def

A

Measures how much demand for good/service changes relative to income

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12
Q

Price elasticity of supply

A

Measuring how much quantity supplied of a good/service changes relative to change in price

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13
Q

Subsidy

A

Payment per unit of output from the gov to a firm

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14
Q

Minimum price control

A

Gov sets artificial minimum price above price equilibrium (artificial surplus)

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15
Q

Maximum price control

A

Gov sets artificial maximum below price equilibrium (artificial shortage)

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16
Q

Externality

A

When the consumption/production of a good/service negatively/positively affects a 3rd party

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17
Q

(-) externality of production

A

When production of good/service negatively affects 3rd party

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18
Q

(+) externality of production

A

When prod of good/service (+) affects 3rd party

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19
Q

Sustainability

A

Consuming resources at a rate that preserves them for future generations

20
Q

Imperfect competition (information)

A

Consumers/producers don’t have access to market and market isn’t competitive

21
Q

Aggregate demand

A

Total demand for all goods/services at all price levels

22
Q

Fiscal policy

A

Set of gov policies that oversees taxation and gov spending

23
Q

Exchange rate

A

Value of one currency expressed in terms of another

24
Q

Monetary policy

A

Set of official policies that oversees interest rates and money supply

25
Q

Aggregate supply

A

Total supply of all goods/services at all price levels

26
Q

Unemployment

A

Those of working age who are without work but who are available for work at the current wage rates

27
Q

Recession

A

2 or more consecutive fiscal quarters of (-) GDP growth

28
Q

Depression

A

4 or more consecutive fiscal quarters of (-) GDP growth

29
Q

Inflation

A

Persistent increase in average price level

30
Q

Deflation

A

Persistent decrease in average price level

31
Q

Monetarism

A

Can control inflation/deflation based on money policy

32
Q

Consumer price index (CPI)

A

Measure market basket of goods

33
Q

Free trade

A

Gov/state doesn’t affect trade policy

34
Q

Protectionism

A

Gov/state does affect trade policy

35
Q

Tariff

A

Tax on imported goods

36
Q

Quota

A

Physical limit on quantity and/or value of good/service that can be imported into a country

37
Q

Economic integration

A

Describes a process where by countries coordinate and link their economic policies

38
Q

Trading bloc

A

Group of countries that join together in order to increase trade between themselves and/or to gain economic benefits from cooperation in some level

39
Q

Definition of demand

A

Willingness and ability of consumers to purchases a good/service at a given price at a given time

40
Q

Interest rate

A

Cost of borrowing

41
Q

Scarcity

A

A situation where unlimited wants exist but the resources available to meet them are limited.

42
Q

Monopoly

A

Where there is only one dominant firm in the industry

43
Q

Oligopoly

A

Market structure dominated by a few firms or product supplied by few firms

44
Q

Frictional unemployment

A

Short-term

45
Q

Structural unemployment

A

Permanent decline in demand for specific type of labor

46
Q

Seasonal unemployment

A

Based on the seasons

47
Q

Dumping

A

When a good/service is sold in a foreign country for a price lower than in the domestic country or than its cost of production

Economics (5 decks)

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