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Academic Decathlon > economics 526-600 > Flashcards

economics 526-600 Flashcards

1
Q

imports are (leaks from/injections into) the real flow

A

injections into

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2
Q

true or false: a monopoly’s marginal revenue curve is equal to its demand curve

A

FALSE

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3
Q

describe the characteristics of monopolistic competition

A

a large number of sellers, product differentiation, few barriers to entry or exit

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4
Q

a producer may become a if it obtains exclusive ownership of a resource

A

monopoly

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5
Q

describe the shape of the demand curve in an oligopoly

A

kinked

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6
Q

which market structure has a large number of sellers offering differentiated products with few barriers to entry

A

monopolistic competition

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7
Q

in a perfectly competitive market the demand curve for individual producers is completely

A

elastic

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8
Q

the u.s. constitution guarantees that people will not be deprived of their private property without __ of law

A

due process

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9
Q

what is a patent

A

an exclusive right to make or sell an invention over a fixed period

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10
Q

what is the term for laws that prohibit agreements requiring employers to hire only union members

A

right to work or open shop law

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11
Q

what is the term for an employer that only hires union labor

A

closed shop

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12
Q

collective bargaining is a tool used by what institution to increase workers wages

A

labor union

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13
Q

what is the difference between saving and investing

A

saving is abstinence from present consumption. investment is the use of resources for future production

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14
Q

what is a copyright

A

a right to exclusively control intellectual property

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15
Q

the market structure of a union

A

monopoly

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16
Q

labor unions often try to increase wages by __ the supply labor

A

decreasing

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17
Q

commons is another name for what type of good

A

public good

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18
Q

what is the term for the price paid for borrowing money for a period of time

A

interest rate

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19
Q

name some methods that labor unions use to raise wages

A

restricting the supply of labor, collective bargaining, increasing the demand for labor

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20
Q

the tragedy of the commons occurs when this type of good is abused

A

public good

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21
Q

money earned today can be spent months or years from now. during that time, money is serving which functions

A

a store of value

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22
Q

what are the three functions of money

A

a medium of exchange, a unit of account, and a store of value

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23
Q

money that is used in a transaction is serving which function

A

a medium of exchange

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24
Q

what does it mean for money to be a unit of account

A

it serves as a measure of value; goods and services can be compared based on how much money it takes to purchase them

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25
Q

the value of money is

A

instrumental

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26
Q

what physical properties must currency have for it to be an effective form of money

A

it must be durable; easy to transport, handle, and distinguish from other types of money; and difficult to counterfeit

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27
Q

about _ percent of the money used for daily transactions is in the forms of coins and currency

A

25

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28
Q

Describe characteristics of a monopoly

A

one firm, no close substitutes, high barriers to entry

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29
Q

What are some examples of artificial barriers to entry?

A

government regulation, import quotas and tariffs, patents, others

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30
Q

What is the structure of the market for automobiles?

A

oligopoly

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31
Q

In a perfect competitive market, demand is perfectly (elastic/inelastic).

A

elastic

32
Q

True or False: In a monopoly, there are high barriers to entry.

A

TRUE

33
Q

The auto industry is generally considered to be which type of market structure?

A

oligopoly

34
Q

What type of market structure has only one buyer?

A

monopsony

35
Q

A monopolistic competitive market has (one/few/many) sellers.

A

many

36
Q

How are backpacks an example of monopolistic competition?

A

There are many producers of backpacks - Osprey, Gregory, Jansport, Eastpak, Lowe Alpine, REI, Arcteryx, among others - each trying to convince users that its products are different from the others.

37
Q

Monopolies have an incentive to maximize profit by restricting (prices/output).

A

output

38
Q

Why is advertising important in monopolistic competition?

A

In a monopolistic competitive market, firms compete by differentiating their products.

39
Q

What is contrived scarcity?

A

Contrived scarcity occurs when a monopoly withholds goods from consumers in order to raise the price.

40
Q

Which market structure has a large number of sellers offering identical products with no barriers to entry?

A

perfect competition

41
Q

Competition among sellers tends to result in (higher/lower) prices.

A

lower

42
Q

If there are no barriers to entry or exit, what does it mean for any individual firm?

A

It can enter or leave the market at any time.

43
Q

As prices increase in a perfectly competitive market, what happens to the number of sellers?

A

The number of sellers increases because new producers have an incentive to enter the market.

44
Q

Local telephone, electricity, and gas utilities generally have what type of market structure?

A

monopoly

45
Q

What are two legal grants of exclusive ownership?

A

patents and copyrights

46
Q

As prices increase in a perfectly competitive market, what happens to the number of buyers?

A

The number of buyers decreases because some buyers will seek substitutes.

47
Q

If one firm in an oligopoly lowers its prices, other firms tend to (ignore/match) this increase.

A

match

48
Q

What is the structure of the market for airline travel?

A

oligopoly

49
Q

Competition among sellers tends to result in (better/worse) quality of goods and services/

A

better

50
Q

What is a price taker?

A

a firm that must “take” (accept) the market price

51
Q

A perfectly competitive market has (one/few/many) sellers.

A

many

52
Q

What is the structure of the market for wheat?

A

perfect competition

53
Q

Competition among buyers tends to result in (higher/lower) prices.

A

higher

54
Q

An oligopoly has (one/few/many) sellers.

A

few

55
Q

the new deal provided a test of whose economic theory

A

john maynard keynes

56
Q

what does it mean for some of the national debt to be externally held?

A

external debt is owed to foreign individuals firms banks and govts

57
Q

which economist wrote the general theory of employment, interest, and money?

A

john maynard keynes

58
Q

if the marginal propensity to consume (MPC) is .8, what is the govt expenditure multiplier

A

5

59
Q

what might have caused an almost tenfold increase in the national debt between 1935 and 1945?

A

the new deal’s income security and govt spending programs, as well as spending on ww2

60
Q

currently, the national debt is about how much per person in the us?

A

about 20,000$ perperson

61
Q

what does it mean for some of the national debt to be internally held?

A

internal debt is owed to parties within the us

62
Q

if a govt spends more than it receives in revenue during a given year, it is running _____

A

a deficit

63
Q

if a govt spends less than it receives in revenue during a given year, it is running _____

A

a surplus

64
Q

the national debt increased from under one trillion dollars in 1980 to about how many trillion dollars in 1990?

A

three

65
Q

what is contractionary fiscal policy?

A

govt intervention to slow rising inflation

66
Q

what are the two most important tools for the govt in implementing fiscal policy?

A

govt spending and taxes; either can be increased or decreased

67
Q

increased taxes result in (lower/higher) GPD

A

lower

68
Q

what does “loose money” mean with regard to the federal reserves?

A

it means the fed reserve is undertaking policies that encourage the growth of the money supply

69
Q

how does the marginal propensity to consume relate to the multiplier effect?

A

the MPC indecates the amount of each dollar pumped into the economy that will be re-spent

70
Q

what is expansionary fiscal policy?

A

govt intervention to increase GDP and decrease unemployment

71
Q

what prompted the creation of the fed reserve

A

the money panic of 1907

72
Q

which banks must belong to the fed reserve system,?

A

national banks (banks operating in more that one state)

73
Q

explain the difference between debt and deficit

A

a budget deficit is the amount by which govt spending exceeds tax revenue in a given year. The natl debt is the total outstanding securities and interest obligations of the fed govt

74
Q

how does the fed reserve manipulate the money supply?

A

the fed buys and and sells us securities and raises and lowers interest rates in order to stimulate or stifle growth as it deems necessary

75
Q

into how many districts is the fed reserve divided?

A

12

Academic Decathlon (35 decks)

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