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Economics > Economics Final > Flashcards

Economics Final Flashcards

1
Q

the study of how people seek to satisfy their needs and wants by making choices

A

economics

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2
Q

something necessary for survival; i.e. air, food, shelter, etc.

A

need

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3
Q

an item we desire but that is not necessary for survival

A

want

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4
Q

physical objects such as clothes or shoes

A

goods

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5
Q

actions or activities that one person performs for another; i.e. babysitting, haircuts, tutoring, gardening, mechanic

A

services

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6
Q

the three groups of resources that are used to make all goods and services

A

factors of production

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7
Q

What are the three factors of production?

A

land
labor
capital

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8
Q

all natural resources used to make goods and services

A

land

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9
Q

effort that people devote to a task for which they are paid

A

labor

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10
Q

any human made resource that is used to create other goods and services; there are two kinds, physical and human

A

capital

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11
Q

Give an example of physical capital.

A

tools, building, etc.

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12
Q

Give an example of human capital.

A

skills, knowledge, etc.

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13
Q

What are the three key economic questions?

A
  1. What goods and services should be produced?
  2. How should these goods and services be produced?
  3. Who consumes these goods and services?
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14
Q

the method used by a society to produce and distribute goods and services

A

economic system

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15
Q

economic system that relies on habit, custom or ritual to decide questions of production and consumption of goods and services

A

traditional economy

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16
Q

economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets

A

market economy

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17
Q

economic system in which the central government makes all decisions on the production and comsumption of goods and services

A

centrally planned economy

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18
Q

economic system in which a central authority is in command of the economy; a centrally planned economy

A

command economy

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19
Q

market-based economic system with limited government involvement

A

mixed economy

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20
Q

Economy of the Soviet Union

A
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21
Q

5th Amendment

A

ensures private property rights

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22
Q

14th Amendment

A

protects and gives freedom for contractual agreements

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23
Q

16th Amendment

A

protection from over taxation by basing it on income

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24
Q

the study of the behavior and decision making of entire economies

A

macroeconomics

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25
Q

the study of the economic behavior and decision making of small units, such as individuals, families, and businesses

A

microeconomics

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26
Q

standard of living

A
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27
Q

public goods

A
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28
Q

externalities

A
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29
Q

desire to own something and the ability to pay for it

A

demand

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30
Q

consumers buy more of a good when its prices decreases and less when its price increases

A

law of demand

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31
Q

the amount of goods available

A

supply

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32
Q

tendency of suppliers to offer more of a good at a higher price

A

law of supply

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33
Q

a good that consumers demand less of when their incomes increase

A

inferior good

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34
Q

a good that consumers demand more of when their incomes increase

A

normal good

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35
Q

Describe the elasticity of supply and demand. (Unit 2 Test #5)

A

the demand and supply of a good are affected by a change in price. as price increases, demand decreases, but as the price increases, the supply increases.

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36
Q

the total amount of money a firm receives by selling goods or services

A

total revenue

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37
Q

a cost that does not change, no matter how much of a good is produced; i.e. building rent, worker’s salaries

A

fixed cost

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38
Q

a cost that rises or falls depending on how much is produced; i.e. electric, water, heating bills

A

variable cost

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39
Q

the point at which quantity demanded and quantity supplied are equal

A

equilibrium

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40
Q

situation in which quantity demanded is greater than quantity supplied; also known as excess demand

A

shortage

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41
Q

a sudden shortage of a good

A

supply shock

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42
Q

a system of allocating scarce goods and services using criteria other than prices

A

rationing

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43
Q

when quantity supplied if more than quantity demanded; also known as excess supply

A

surplus

44
Q

What can producers do when they have a surplus of their goods?

A

Lower prices to sell more

45
Q

a market structure in which a large number of firms all produce the same product

A

perfect competition

46
Q

a market dominated by a single seller

A

monopoly

47
Q

a market structure in which many companies sell products that are similar but not identical

A

monopolistic competition

48
Q

What are the four conditions for perfect competition?

A
  1. Many buyers and sellers participate in the market
  2. Sellers offer identical products
  3. Buyers and sellers are well informed about products
  4. Sellers are able to enter and exit the market freely
49
Q

What are the four conditions for monopolistic competition?

A
  1. Many firms
  2. Few artificial barriers to entry
  3. Slight control over price
  4. Differentiated products
50
Q

a product that is the same no matter who produces it; i.e. petroleum, notebook paper, or milk

A

commodity

51
Q

any factor that makes it difficult for a new firm to enter a market

A

barrier to entry

52
Q

a market structure in which a few large firms dominate a market

A

oligopoly

53
Q

the ability of a company to change prices and output like a monopolist

A

market power

54
Q

division of customers based on how much they will pay for a good

A

price discrimination

55
Q

What three conditions does a market need to meet for price discrimination to work?

A
  1. Some market power
  2. Distinct customer groups
  3. Difficult resale
56
Q

an establishment form to carry on commercial enterprice

A

business organization

57
Q

a business owned and managed by a single individual; the most common forms of business organizations

A

sole proprietorship

58
Q

Advantages of Sole Proprietorship:

A
59
Q

Disadvantages of Sole Proprietorship:

A
60
Q

a business organization owned and managed by two or more people

A

partnership

61
Q

a partnership in which one partner has unlimited personal liability for the firm’s actions

A

limited partnership

62
Q

partnership in which partners share equally in both responsibility and liability

A

general partnership

63
Q

partnership in which all partners are limited partners

A

limited liability partnership (LLP)

64
Q

a contractual agreement between partners detailing the responsibilities and liabilities of each person

A

articles of partnership

65
Q

Who is responsible for labor statistics?

A

The Bureau of Labor Statistics

66
Q

a temporary or part-time job

A

contingent employment

67
Q

labor that requires no special skills, education, or training; i.e. a janitor

A

unskilled labor

68
Q

labor that required minimal specialized skills and education; i.e. a short order cook

A

semi-skilled labor

69
Q

labor that requires specialized skills and education; i.e. a mechanic

A

skilled labor

70
Q

labor that requires advances skills and education; i.e. a doctor

A

professional labor

71
Q

someone who works in an industrial job, often in manufacturing, and who receives wages

A

blue-collar worker

72
Q

someone in a professional or clerical job who usually earns a salary

A

white-collar worker

73
Q

a settlement technique in which a neutral mediator meets with each side to try and find a solution that both sides will accept

A

mediation

74
Q

a settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides

A

arbitration

75
Q

joining two or more firms involved in different stages of producing the same good or service

A

vertical merger

76
Q

joining two or more firms who produce the same good or service

A

horizontal merger

77
Q

three or more firms that produce unrelated products

A

conglomerates

78
Q

an unofficial, invisible barrier that prevents women and minorities from advancing in business dominated by white men

A

glass ceiling

79
Q

anything that serves as a medium of exchange, a unit of account, and a store of value

A

money

80
Q

What are the six characteristics of money?

A 
Durability
Portability
Divisibility
Uniformity
Limited Supply
Acceptability
81
Q

The United States central banking system

A

Federal Reserve System

82
Q

a banking system that keeps only a fraction of funds on hand and lends out the remainder

A

fractional reserve banking

83
Q

interest that builds on the principal amount only

A

simple interest

84
Q

interest that builds on the principal amount the first time, then the new amount the second time, and so on; takes interest on the compounded amount each time

A

compound interest

85
Q

anything a person has that holds value or worth, including nonmonetary items; i.e. all cash, a person’s house, car, etc.

A

financial assets

86
Q

institutions that help channel funds from savers to borrowers

A

financial intermediaries

87
Q

bonds

A
88
Q

NYSE

A
89
Q

an overview of the stocks of the top 30 companies

A

The Dow

90
Q

an overview of the stocks of 500 companies

A

S&P 500

91
Q

unemployment that occurs when people take time to find a job

A

frictional unemployment

92
Q

unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for a season

A

seasonal unemployment

93
Q

unemployment that occurs when workers’ sills do not match the jobs that are available

A

structural unemployment

94
Q

unemployment that rises during economic downturns and falls when the economy improves

A

cyclical unemployment

95
Q

the percentage of the nation’s labor force that is unemployment

A

unemployment rate

96
Q

working at a job for which one is over-qualified, or working part time when full time work is desired

A

underemployed

97
Q

a general increase in prices

A

inflation

98
Q

a representative collection of goods and services

A

market basket

99
Q

a group of two or more people who related by birth, marriage, or adoption who live in the same housing unit

A

family

100
Q

all people who live in the same housing unit, regardless of how they are related

A

household

101
Q

the process by which rising wages cause higher prices, and higher prices cause higher wages

A

wage-price spiral

102
Q

poverty threshold

A

the income level below which income is insufficient to support a family or household

103
Q

Factors that contribute to poverty:

A

Race and ethnic origin
Type of family
Age
Residence

104
Q

Causes of poverty

A 
lack of education
location
racial and gender discrimination
economic shifts
shifts in family structure
105
Q

a worker who wants a job but has given up looking for one

A

discouraged worker

Economics (13 decks)

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