Economics Flashcards
What is a monopoly?
The sole producer of the Specific good
What is a oligopoly?
A single producer of a good, can exert influence over the pricing of goods That can overwhelm the regular logic of competitive markets
This phrase describes a theoretical market in which only logic of supply and demand can influence prices.
Perfect competition.
the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services.
Microeconomics
What is microeconomics?
Studies the behaviors of individual buyers, sellers, and business firms.
The four processes of the business cycle.
Recovery prosperity recession depression
This period of expansion is characterized by an increase in the gross domestic product (GDP) rate of growth.
Recovery
Which period of the business cycle, follows a period of economic contraction?
Recovery
What is in extended period of economic expansion?
Prosperity
This can be characterized by sustained growth in the GDP and an unusually low unemployment rate.
Prosperity within the business cycle
What is the period within the business cycle where there is economic contraction and a negative GDP growth and a slightly elevated unemployment rate
Recession
What is the extended period of economic contraction?
Depression
This is characterizes by sustained negative GDP growth and a decrease in capacity utilization.
Depression
What is the distinction between a recession and a depression?
The unemployment rate is even worse in a depression and a depression persist for long period
A simplified model of the relationship of production and consumption.
Circular flow of income
The intention was to create an organization that could regulate the money supply in an elastic way to meet periodic changes in money demand and act as last resort lender to commercial banks that were in desperate need of a loan.
Federal reserve
What is open market operations.
Methods for expanding or constricting the money supply through the sale or loan of government bonds or similar items.
The use of government powers to affect the performance of the national economical system.
Fiscal policy
The effort to affect the economy through the regulation of interest rates and the expansion or contraction of the monetary supply.
Monetary policy
An increase in the average prices of consumer goods in the given economic system.
Inflation
Caused of inflation
Increase in the money supply, literally the amount of money available within an economic system. Changes in the supply of goods.
Where can inflation be countered?
In economic systems with a central bank, like the federal reserve bank.
What can central banks do?
Slow inflation by raising interest rates and slowing the growth of the money supply.
Opposite of inflation is?
Deflation
This organization was established to create a global currency system to the monitoring of exchange rates and balance of payments.
International Monetary Fund
The term for the integration that trade, migration and the spread of technology have brought
Globalization
What is the balance on goods and services?
The trade balance the balance of services and goods equals the value of exports minus the value of imports.
Any restriction on international trade that is not a tariff. environmental regulations that barred the important of certain vehicles would be an example
Non tariff barriers
Taxes on imported goods. increase the price of foreign goods and make domestically produced goods Marchak to consumers. used by nations to protect domestic producers from foreign competition
Tariffs
Went to governments agree to limit the Volume of a particular exported good
Voluntary export restraints
A Government may restrict access to foreign markets or restrict competition by foreign producers by placing a quantity limited on imported and exported goods
Import and export quotas
When currency rises in value in relation to other currencies
Currency appreciation
When currency loses value relative to other currencies
Currency depreciation
Some countries have material or legal advantages on the production of specific good this lowers their opportunity cost not only the cost of producing a good but also the money lost by not focusing on the production of other goods. It benefits countries to produce items of low opportunity cost and trade for items with hot opportunity costs
Comparative advantage
the field of economics that studies the behavior of the economy as a whole and not just on specific companies, but entire industries and economies
Macroeconomics
Prices of goods and services are determined by?
Supply and demand
Supply and demand is defined as
the amount of a good that is available. Vs the amount o the good that buyers wish to purchase.
The more product the lower the prices.
A older system of economy that relies on custom an tradition
Traditional economy
An economy with a mixture of market and planned economy.
Mixed economy
In this economic system
Economic freedom varies
Some privately owned industries
Some government regulations
Mixed economy
An economy directed by the state. It dictates the prices of goods or services as well as their production and distribution.
Planned economy or command economy in countries ruled by socialism. Cuba Iran North Korea
Lassiez-faire
A French phrase used to describe an economy that is completely free from state interventions including potential govt monopolies.
Also applies I capitalistic market economies
An economic system where all means of production are privately owned.
Capitalism
In capitalism decisions regarding supply/demand/price are determined by
The free market.
Profit goes to the owners and investors in the business
What kind of economic system does the US have? Where the cost of goods and devices depend on a free price system. Dictated by supple and demand
A market economy
A type of governmental system that controls how goods are produced, distributed and used within a society.
Economic system
A product that is tangible/physical presence.
Good
If something is not tangible the product is different it is a
Service
This describes an organization that becomes sole provider of a product.
Monopoly
Lack competition can drive up prices without fear of a consumer backlash
Monopoly
A key economic concept related to scarcity. Refer to not only financial cost but also time pleasure or additional benefit
Opportunity cost
A theory that describes the behavior of individual consumer an business.
Microeconomics
This type of economics concerns its self with the behaviors of the entire economic system.
Macroeconomics.
