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Macro Economics > Exsam 1 > Flashcards

Exsam 1 Flashcards

0
Q

What is Normative economics?

A

A opinion based economic statement

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1
Q

Define macro economics

A

The study of the economy as a whole

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2
Q

What is positive economics

A

An economic statement base on fact

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3
Q

Define income gap

A

The gap between the rich and the poor (income)

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4
Q

What is the Law of demand

A

Price goes up demand goes down consumer

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5
Q

What is the law of supply

A

When supply goes up price goes up -supplier

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6
Q

Inflation

A

Price goes up makes people poorer

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7
Q

Hypo-inflation

A

Price goes up a little bit-poorer

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8
Q

Hyperinflation

A

Price goes up a lot -very poor

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9
Q

Disinflation

A

Price goes up and down

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10
Q

Deflation

A

Price goes down- rich effect

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11
Q

Stagflation

A

Price goes up during a recession

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12
Q

Market

A

Where buyers and sellers get together to exchange products

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13
Q

Rational

A

People want the best product for the least price

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14
Q

Incentives

A

Reinforcement to do something

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15
Q

Marginal analysis

A

Marginal benefits vs. marginal costs

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16
Q

Central planned economy

A

All decisions are made at government level

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17
Q

Market economy

A

Free to do buiessness as you please free from government intervention

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18
Q

Mixed economy

A

Combination of central planned economy and market economy

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19
Q

Define effective
Define efficient
What is it call when the 2 are done correctly

A

1-do things correctly
2-do many things
3-productive

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20
Q

Centrus Parabus

A

Everything stays the same except for 1 variable.

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21
Q

Capital

A

Things needed in order to produce something

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22
Q

Land

A

Natural resources

23
Q

Labor

A

Physical /mental labor’s to produce ideas or products

24
Q

Entrapranurial

A

People who are willing to risk their money to make more money

25
Q

Innovation

A

An improvement in a current idea

26
Q

Invention

A

A new idea

27
Q

Firm/compony/business

A

Organization that has the objective to make a profit through a product or service

28
Q

Good

A

A physical item

29
Q

Technology

A

Strategies and machines used to provide service/product

30
Q

Optutunity cost

A

When decisions are made at a price point

31
Q

PPF graph is used to

A

Production possibility frontier ( production proses graphed)

32
Q

Absolute advantage

A

Make a product with less resources than another manufacturer

33
Q

Competitive advantage

A

Opportunity cost is lower can do something easier than competitor

34
Q

Circular flow of money

A

Market ➡️households➡️product➡️firm and vis versa

35
Q

Substitute products

A

One product that replaces another for consumers

36
Q

Complement products

A

A product that goes with another price of one effects other

37
Q

Normal products

A

Obeys the laws of supply and demand

38
Q

Inferior product

A

Product only bought because you cant afford another -when income goes up inferior product demand goes down

39
Q

Input prices

A

What does it cost to manufacture the product

40
Q

Market equilibrium

A

Supply and demand are the same

41
Q

Price ceiling

A

Can sell product at maximum price, but price must be below the equilibrium

42
Q

Price floor

A

Minimum price that can be changed, but must be above price equilibrium

43
Q

Morbidity

A

Measures the health of a nation

44
Q

Mortality

A

Death rates of a nation

45
Q

Medicare

A

Covers people 65 and older

46
Q

Medicade

A

Covers low income people

47
Q

Obama care

A

Stay on parents policy till 26
Designed to give poor health insurance/ standardize policy’s
Income 200,000 or more pay higher tax

48
Q

Asymmetric information

A

One party has more info. About a economic situation than another

49
Q

Adverse selection

A

When a individual knows more about something that has to do with economics and uses it to their advantage

50
Q

Moral hazard

A

Actions that people take in order to take advantage of someone else after a buissness agreement

51
Q

Consumer surplus

A

What you are willing to pay vs. what your actually paying

52
Q

Producer surplus

A

Above the supply curve but below the price equilibrium price

53
Q

Economic surplus

A

The consumer surplus + the producer surplus

54
Q

Single payer

A

Government pays for all insurance

Macro Economics (5 decks)

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