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Macro Economics > Exsam 2 > Flashcards

Exsam 2 Flashcards

0
Q

Partnership

A

Two or more owners of a company 10% of all firms

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1
Q

Sole proprietorship

A

One owner of a company 70% of all firms

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2
Q

Corporation

A

Only requires a lot of paperwork, organization itself tends to be more complex

  • 10% of all firms
  • 70% of partnerships
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3
Q

Asset

A

Anything of value

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4
Q

Liability

A

Anything you owe

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5
Q

Limited liability

A

Financial liability is limited to a fix some most commonly the value of a person’s investment in a company or partnership

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6
Q

Entrepreneur

A

Able to start small businesses and risks money to make more money

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7
Q

Corporate government

A

How corporation runs their buiessness

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8
Q

How to Raise capital in a cooperation

A
  • Borrow money from bank
  • invest in mutual funds
  • invest in stock
  • issue bonds
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9
Q

GAAP

A

(Generally accepted accounting principles)

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10
Q

Income statement

A

Measures over a period of time how much sale you have versus your expense

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11
Q

Balance sheets

A

Assets vs. liabilities

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12
Q

Reattained earnings

A

What a company keeps and doesn’t pay back to anybody

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13
Q

SARBAIMS-OXIY

A

Makes sure cooperations cant lie about accounting

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14
Q

Comparative advantage

A

When one companies opportunity cost is less then a competitor and allows the company to do something easier

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15
Q

International trade

A

Between different countries

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16
Q

Exports

A

Ships products out

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17
Q

Imports

A

Products taken in

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18
Q

Trade surplus

A

Ship more out than we bring in

-generally good

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19
Q

Trade deficit

A

Exports are less than imports

  • generally bad
  • costs jobs
  • lower wages
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20
Q

Tariff

A

Tax on imports

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21
Q

Absolute advantage

A

Fewer inputs to do the same manufacturing job than a competitor

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22
Q

Autarky

A

Only trades within individual nation

23
Q

Contributions to comparative advantage

A
  • Climate/ natural recourses
  • labor/ capital
  • technology
  • external economies
24
Q

Free trade

A

Trade with no legal or tariff restrictions

25
Q

Quota

A

One country puts a cap that limits the volume of material shipped into a country

26
Q

Embargo

A

Boycott of a product

27
Q

VER (voluntary export restraint$

A

Ask another country to slow down the flow of products into a country

28
Q

World trade organization

A

Corporation that helps other develop buissness

29
Q

Globalization

A

Talks about the world as a whole

30
Q

Protectionism

A

No trade with other countries

  • argument to save jobs
  • protect our wages
  • protect new it infant economies from competition from other countries
  • national security
31
Q

Dumping

A

Selling a product for far less than it’s worth/then I competitors price to run them out of buissness

32
Q

Positive economics

A

Fact based economics statement

33
Q

Normative economics

A

Opinion based economics statement

34
Q

GDP ( gross domestic product)

A

Measure of economy in terms of what is produced here.

-GDP= consumption+ investment+government spending+ net exports

35
Q

Consumption

A

What we spend

36
Q

Investments

A

the action or process of investing money for profit or material result.

37
Q

Government purchases

A

All government expenditure on currently produced goods and services, exclusive of government transfer payments

38
Q

Net exports

A

the difference between a country’s total value of exports and total value of imports.

39
Q

Different types of products

A
  • Raw materials: start with
  • in process: in process of being made
  • finished goods: goods finished being made
40
Q

GDP per capita

A

Measures how well a countries citizens are doing

Total GDP / total citizens of country= GDP per capita

41
Q

Microeconomics

A

Economics dealing with individuals

42
Q

Macroeconomics

A

Dealing with the economy as a whole

43
Q

Buissness cycle graph

A

The fluctuations in economic activity that an economy experiences over a period of time.

44
Q

Transfer payments

A

All government payments without anything in return (labor/product) not part of GDP

45
Q

Nominal GDP

A

Prices of goods and services measured in today’s Values

46
Q

Real GDP

A

Same As GDP but factors in a base

47
Q

General price level

A

Average price of a good from one year to the next

48
Q

GDP deflator

A

Gives an idea if prices are going up or down

(Nominal GDP / real GDP)(100)=GDP deflator

49
Q

Gross national product (GNP)

A

Measures total economy except by the residence where ever they produce
-measures companies worldwide

50
Q

National income

A

Total income if a country

51
Q

Personal income

A

All income families and households make

52
Q

Disposable personal income

A

The total amount of money available for an individual or population to spend or save after taxes have been paid.

53
Q

Limited liability

A

If a firm fails, the owners never lose more than what they have invested in the firm

54
Q

3 largest rating companies

A

Moodies
Standard and poors
Fitch ratings

Macro Economics (5 decks)

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