Endterms Flashcards
Private goods
excludabe and rival
Public goods
nonexcludable and nonrival
Free rider
Someone who enjoys the benefits but doesnt pay the share of the costs
Forced rider
Someone who pays the shared costs but doesnt enjoy the benefits/dislikes them
Club goods
excludable but nonrival
Common resources
non-excludable but rival
tragedy of the commons
overexploitation and undermaintenance of goods
Public choice
the study of political behaviour usint the tools of economics
rational ignorance
the benefits of being informed are less than the cost of doing so
GDP
the market value of all final goods and services within a country within a year
Intermediate goods
goods and services sold to firms them bundled/processed for sale
GDP per capita
GDP divided by the country’s population
National wealth
entire stock of assets within a nation
Nominal variables
haven’t been adjusted for changes in price
Nominal GDP
calculated using the prices at the time of sale
Real variables
adjusted for changes in price (inflation)
Real GDP
is determined using the same prices in all years
Recession
significant and widespread decline in employment and GDP
Business fluctuations/cycles
short run movements in real GDP around its long term trends
Consumption
private spending on final goods and services
Investments spending
private spending on capital goods used for future output
Government purchases
spending by all levels of government on final goods and services (transfers not included)
Net exports
value of exports and imports
Catching up growth
growth due to capital accumulation, using already existing technologies and ideas