Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Math > Economy > Flashcards

Economy Flashcards

1
Q

What is Macroeconomics?

A

Macroeconomics is the study of an entire economy of a country (or other form of spending government)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What does GDP stand for?

A

Gross Domestic Product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is GDP?

A

GDP is the value in money of all of the goods produced and traded annually

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What type of production doesn’t count on GDP?

A

things not included in GDP is:
~producing for oneself
~ Illegal production
~ trading of already accounted for items

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why is GDP measured in the money value of the product?

A

to avoid confusing a country that produces as much low value items being as wealthy as a country that produces the same amount of high value items

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is directly correlated to the fall of unemployment

A

when GDP is raising, unemployment is falling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

The formulae for unemployment rate is?

A 
100(U/L) = unemployment rate
U= unemployed people*
L = employed people
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What kind of people that don’t have jobs don’t count towards negative unemployment?

A

~frictional unemployed people

~structional unemployed people

~People who refuse to work

~People who can’t work (old people, children)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What type of unemployment is threatening?

A

~Cyclical: due to recession

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the goal of economists when it comes to unemployment?

A

to keep cyclical unemployment as low as possible

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is frictional unemployment?

A

unemployed people who are imbetween jobs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is structional unemployment?

A

people who are unemployed because their profession has been replaced by machines or became irrelevant.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is cynical unemployment?

A

unemployed people that are actively looking for a job but cannot get/find one

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What did Adam Smith conclude improve a nations wealth?

A

division of labor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Who would Adam Smith provide we should create a pizza?

A

~One prepares ingredients
~another puts it in the oven
~another one puts it in the box.

This division makes each worker more productive, since each one is focused on a thing they do best and they don’t need to spend time switching between the tasks.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What gets rid of self-sufficiency?

A

specializations:

the giving of much more specific tasks to one worker to produce more

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

If you are good at producing one particular item, how would you get ahold of other items you would need for a finished product?

A

specialize at your craft and then trade with others.

if you make A’s for a company that make’s ABCD’s, you could also give A’ s to the company that makes ASDF’s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a market?

A

Anyplace where buyers and sellers meet to exchange goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

If too much of a product is being generated-

A

sellers will sell them off at a lower price, giving produce less

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

If too little of a product is being generated-

A

sellers will sell them off at a higher price, giving producers incentive to produce more

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what are price signals?

A

the information that markets generate that guide the distribution of resorces

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what is the Y-axis in supply and demand?

A

price per product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what is the X-axis in supply and demand?

A

amount of product

24
Q

supply curve slopes positively or negatively?

A

possitively

25
Q

demand curve slopes positively or negatively?

A

neggatively

26
Q

if the price is high-

A

-producers will produce more, buyers will buy less

27
Q

what is is called when the price is high so producers will produce more but buyers will buy less

A

a surplus

28
Q

if the price is low-

A

-buyers will buy more, producers will produce less

29
Q

what is it called when the price is low so buyers will buy more but producers will produce less

A

a shortage

30
Q

what is an equilibrium price?

A

the price that meets the amount buyers would be satisfied spending and producers would be satisfied earning

31
Q

quantity supplied=quantity demanded is?

A

equilibrium price

32
Q

equilibrium price is?

A

the price at which the quantity of a product offered is equal to the quantity of the product in demand

33
Q

equilibrium quantity is?

A

The quantity demanded or supplied at the equilibrium price

34
Q

What has to be calculated to not confuse a country with an other wise larger GDP than another country which is noticeably richer

A

calculate GDP Per Capita

so even if a country with a large population produces more, it is still poorer

35
Q

What is GDP Per Capita

A

GDP / population

36
Q

If inflation goes down:

A
  • Everyone essentially gets a raise

- More things can be produced and traded

37
Q

If inflation goes up:

A

everyone essentially gets a cut in wages

-less things produced and traded

38
Q

What is inflation?

A

An increase in a currency supply relative to the number of people using it, resulting in rising prices of goods and services over time

39
Q

what are bubbles?

A

A market phenomenon characterized by surges in asset prices to levels significantly above the fundamental value of that asset

40
Q

When adjusting for inflation, economists pick out a list of:

A

goods representing what an average consumer buys in a year

called a CONSUMER BASKET

41
Q

How to adjust for inflation

A

create a consumer basket for this year and the next couple of years. Then take a base year (any year you want). Divide the basket cost of each year by the base year and times by a hundred.

creating a CONSUMER PRICE INDEX.

42
Q

What is a consumer price index?

A

A statistical estimate constructed using the pieces of a sample of representative items whose prices are collected periodically.

43
Q

What is Demand Pull Inflation?

A

Too much money chases too few goods.

There are many rich people trying to get the scarce amount of resources. The resulting competition makes opportunist rise in money as well as competitive bid in money

44
Q

What is Cost Push Inflation?

A

A decrese in availability of a very important product, causing to be worth more.

Anything generally associated or dependent on this product will now raise in cost as well.

45
Q

How did the bubble with the start of the internet go down?

A

People were amazed by the internet and mass amounts of people began investing billions into it until the stock market collapsed

46
Q

What is a recessionary gap?

A

a situation wherein the real GDP is lower than the potential GDP at the full employment level

so working factories and people are not in use

47
Q

What is an inflationary gap?

A

The amount by which the actual GDP exceeds potential GDP

So people are over employed and factories are working over time. this is not sustainable and could lead to inflation

48
Q

What is fiscal policy?

A

when the economy is going too slaw of too fast, the government can adjust spending levels and taxes to influence the economy

49
Q

What problems are there with contractionary fiscal policy?

A

raising taxes, taking the money and higher productivity away to solve inflationary or dept problems sounds anti-intuitive and is extremely hard to sell. It causes many arguments and costs jobs

50
Q

What is defecit spending?

A

Because spending less than tax money would ruin national production, the government needs tax money as well as dept money

51
Q

What is Austerity?

A

raising taxes and cutting government spending to reduce dept

52
Q

What is a deficit?

A

the amount by which a governments spending exceeds it’s income over a particular period of time

53
Q

what is dept?

A

the accumulation of a country spending more than they own

54
Q

What is default?

A

When a country goes into so much dept that it doesn’t pay properly that other countries may suspect they’ll never get payed back and thus stop funding the country.

the country loses all credibility in the end and falls into massive reccesion

55
Q

What is a debt ceiling?

A

Limit on the amount of national debt that can be issued by the US treasury

Math (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions