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Econ > Ferrell's Final Exam > Flashcards

Ferrell's Final Exam Flashcards

1
Q

Who is the superstar of Price Theory?

A

Marshall

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2
Q

This is a form of a Natural Monopoly?

A

Price Decreasing Industry

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3
Q

Where does the monopolist want to operate?

A

Above the min AC

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4
Q

Homogeneity, Free enterprise and Market price are assumptions of which model?

A

Perfect Competition

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5
Q

The inflection point of the TC function is called what?

A

min MC

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6
Q

Where is the slope of the vector from the origin= slope of the TC function?

A

Min AC

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7
Q

A factor good is used in the production of what?

A

Another Good

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8
Q

A constant cost remains the same regardless of the number of units produced (T/F)

A

True

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9
Q

A fixed cost is only incurred when you increase the level of production (T/F)

A

False

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10
Q

A business with the absence of external tariffs or absence of internal tariffs is called?

A

Free Trade Area

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11
Q

This is a model that describes for whom the economy produces

A

Distribution Theory

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12
Q

The thing that A (one person or country) does better than B (another person or country), relative to everything else that A does is called

A

Comparative Advantage

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13
Q

The typical farmer prefers which type of program?

A

Government Purchase

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14
Q

Those concerned with the price of the food prefer which type of program?

A

Price Differential

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15
Q

Who believed in optimal theory?

A

Pareto

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16
Q

A market that permits free entry and exit by buyers and sellers is called?

A

Free enterprize

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17
Q

To tie or connect a commodity to money is called?

A

monetize

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18
Q

An increase in price followed by an increase in quantity demanded is called?

A

Reverse Substitution

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19
Q

The demand line for an item represents the total quantity purchased (T/F)

A

False

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20
Q

A business with an output that weighs significantly less than the raw materials used to manufacture is called?

A

Weight Decreasing Industry

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21
Q

Veblen’s thesis that some goods are preferred to others because of their social implication is called?

A

Conspicuous Consumption

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22
Q

An analysis that considers all variables over a time series is called Static (T/F)

A

False

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23
Q

Numbers that assign rank are called?

A

Ordinal

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24
Q

Who invented the concept of Arbitrage?

A

Keynes

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25
Q

Name the economist who contributed the concept of Negative Income Tax

A

Fridmen

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26
Q

Who wrote the Theory of the leisure Class?

A

Veblen

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27
Q

An increase in price will cause the MU/P ratio to increase (T/F)

A

False- Less bang for the buck

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28
Q

Numbers that assign specific value are called

A

Cardinal

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29
Q

Business Cycles

A

Marx

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30
Q

Quantity Theory of Money

A

Hume

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31
Q

Diminishing Marginal Utility

A

Menger

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32
Q

A good or service used by the business sector is called?

A

Investment Good

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33
Q

Classical economists believed in government intervention (T/F)

A

False

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34
Q

What year did the Industrial Revolution take place

A

1750

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35
Q

If I buy a low-priced computer, but now I have additional features (like the internet), and can only get them from the original seller, what kind of sale is this?

A

Tie-in-sale

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36
Q

What is the shut-down point?

A

TR=VC

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37
Q

Fixed supply is when quantity supplied remains the same regardless of price

A

True

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38
Q

What is the break-even point?

A

TR=TC

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39
Q

The condition that exists when no one can be made better off without making someone worse off is called?

A

Optimality Theory

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40
Q

A is preferred to B and B is preferred to C, therefore A is preferred to C represents which assumption?

A

Transitivity

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41
Q

What kind of function is an indifference curve where the quantity of what you’re measuring is the same regardless of where you are on the curve?

A

Isoquant

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42
Q

Ordinal Utility Analysis uses the law of?

A

Substitution

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43
Q

Who is the superstar of Ordinal Analysis?

A

Edgeworth

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44
Q

Ordinal analysis measures what?

A

Rank

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45
Q

What is a good or service used by the household sector called?

A

Consumption Good

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46
Q

A guarantee of a specific outcome is called a necessary condition (T/F)

A

False- Sufficient

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47
Q

What is the slope of 6x-2 +10

A

-12x-3

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48
Q

Marxism is distribution according to need, meritocracy is the distribution according to

A

Scarcity

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49
Q

Any quantity of production beyond the minimum point on the MC function is called?

A

Area of Increasing Marginal Cost

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50
Q

What is a French mercantilist called?

A

Colberist

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51
Q

Assume that TU=900q-9q2. Find MU

A

900-18q

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52
Q

Name 3 great utilitarians

A

Mill, Mill Senior, Bentham

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53
Q

Any quantity of production before the point of diminishing returns is called?

A

Area of decreasing Marginal Cost

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54
Q

Consumer Surplus, Theory of the Firm

A

Marshall

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55
Q

Capitalism will lead to democratic socialism

A

Schumpeter

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56
Q

Concept of demand, Father of European Stock Market

A

Monnett

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57
Q

Law of Comparative Advantage

A

Ricardo

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58
Q

Any quantity of production beyond the point of diminishing returns is called the area of increasing Marginal Cost (T/F)

A

True

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59
Q

What are the necessary conditions of an enforceable agreement?

A

Offer, Acceptance, Consideration

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60
Q

TC divided by number of units produced (q) equals AC (T/F)

A

True

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61
Q

What is the first degree of Price discrimination?

A

Perfect Price

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62
Q

Quotas, import licenses, and exchange controls are all examples of?

A

Non-Tariff Trade Barriers

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63
Q

Quotas on manufactured goods protect whom?

A

Domestic producer

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64
Q

Profits and losses, revenues and expenses, and depreciation are all reported on a company’s

A

Income Statement

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65
Q

The financial statement that reports the company’s position as of a single date is called?

A

Balance Sheet

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66
Q

Patents are what kind of assets?

A

Intangible Assets

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67
Q

Buildings, equipment, etc, are what kind of assets?

A

Fixed

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68
Q

A company’s reputation, location, and management team are examples of what kind of intangible assets?

A

Good will

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69
Q

Assets minus liabilities equal

A

Net worth

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70
Q

Cash and Accounts Receivable

A

Current

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71
Q

Land, Buildings, Equipment

A

Fixed

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72
Q

Patents, copyrights, goodwill

A

Intangible

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73
Q

If the net worth of a company is negative, the firm is said to be

A

insolvent

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74
Q

Can your opportunity costs go on your income statement as an expense?

A

No

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75
Q

The absence of non-economic barriers to leaving a market is called

A

Free Exit

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76
Q

A dutch auction is where the seller reserves the right to influence the price (T/F)

A

False

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77
Q

A good for which the elasticity of demand is less than one is called?

A

A necessity

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78
Q

What 3 countries are in the European community BENELUX?

A

Belgium, Netherlands, Luxembourg

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79
Q

Who is the father of the European community BENELUX

A

Monnett

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80
Q

The time it takes to change all factors of production

A

Long-Run

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81
Q

The amount of accounting profit required to maintain a business without attracting competitors is called

A

Normal Profit

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82
Q

Output is called what?

A

Production

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83
Q

Economic rent is payment to what?

A

Factor of production

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84
Q

A function that shows how much of one good it takes to make someone ambivalent to a given amount of some other good is called

A

Indifference Curve

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85
Q

An oligopsony is a few sellers (T/F)

A

False- Few buyers

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86
Q

This is called an enforceable agreement

A

Contract

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87
Q

Latin term for “this for that; something for nothing”

A

Quid pro quo

88
Q

The price at which quantity supplied equals quantity demanded

A

Equilibrium price

89
Q

Utility recieved but not paid for is called

A

Consumer Surplus

90
Q

What is Consumer Surplus called by Pareto?

A

Welfare Triangle

91
Q

Terms of trade is the Ricardian name for

A

Market Price

92
Q

Both the ability and willingness to pay the current market price is called?

A

Effective Demand

93
Q

The definition of production is

A

output

94
Q

Productivity is

A

output per unit of input

95
Q

The frontier line of maximum output possible when all available factors of production are fully employed at their highest and best use is called what?

A

Production Possibilities Curve (PPC)

96
Q

Equilibrium Theory

A

Walras

97
Q

Study of Natural Laws

A

Menger

98
Q

Wage Fund Doctrine

A

Ricardo

99
Q

Income Redistribution

A

Paredo

100
Q

The ability and willingness to enter the market at some specific price is a sufficient condition (T/F)

A

False- Necessary

101
Q

The ability and willingness to enter the market at some specific price is?

A

Demand

102
Q

A premium in excess of economic rent paid to a factor of production

A

Quasi rent

103
Q

Output per unit input is called

A

productivity

104
Q

Quantity demand is a function of

A

Price

105
Q

Describe productivity when proportional increases in input correspond to an output increase from 100 to 150 to 175

A

Decreasing Return to Scale

106
Q

When quantity demanded is fixed at all levels, what is the elasticity of this good?

A

Totally Inelastic

107
Q

When the price of fish goes down and quantity demanded decreases, what kind of effect is this?

A

Reverse income effect

108
Q

What is utility a measure of?

A

Satisfaction

109
Q

What kind of effect is it when the price of a good decreases and more of it is demanded?

A

Income effect

110
Q

Market price is the competitively arrived at price of a number of goods, in one place, at one time (T/F)

A

False- one good, one price, one time

111
Q

FC+VC=

A

TC

112
Q

Customs duty on goods transported between members of an economic area

A

Internal Tariff

113
Q

When all factors of production are being used at their highest level of production?

A

Capacity point

114
Q

A few sellers

A

Oligopoly

115
Q

This is the study of individual markets, prices, and firms

A

Microeconomics

116
Q

The economic philosophy based on the premise that precious metal is wealth is called

A

Mercantilism

117
Q

A business that is located with out regard to the factors of production is called

A

Footloose

118
Q

An essential requirement for a specific outcome is called

A

Necessary condition

119
Q

A function which continuously approaches a line or axis without meeting it at any finite distance is called

A

asymptote

120
Q

Which economist has a stagnatist graph?

A

Ricardo

121
Q

Who created Sunspot Theory?

A

Jevons

122
Q

When two lines on a graph touch but do not cross, they are said to be

A

Tangent

123
Q

What one does better than others is called

A

Absolute Advantage

124
Q

An introspective unit of satisfaction is called the Law of Demand (T/F)

A

False

125
Q

This is a straight line drawn from an initial point assumed to be the origin

A

Vector

126
Q

A lawyer prepares a contract for his client in August 1998. This action is properly accounted for in 97-98 GNP. (T/F)

A

True

127
Q

A factor that emits pollution in a neighborhood stream as a by-product of its production is creating a what?

A

External Diseconomy

128
Q

If 2 goods were perfect complements, the indifference curve would be

A

Right Angle

129
Q

As output increases AFC will remain constant (T/F)

A

False

130
Q

Verbally describe the elasticity at the midpoint of a linear demand line, which extends to both axis

A

Unit Elastic

131
Q

A tax on salt would fall on the consumer (T/F)

A

True

132
Q

If one firm in an oligopolistic industry raises prices, most firms will follow (T/F)

A

False

133
Q

If a perfect competitor produces where MR=MC=AC, excess profit must be

A

Zero

134
Q

In indifference curve A is to the right of indifference curve B, it will be preferred by the consumer. This represents what mathematical assumption?

A

Rationality

135
Q

According to Ricardo, what factor is the source of all value?

A

Labor

136
Q

Ricardo was not a proponent of import tariffs (T/F)

A

True

137
Q

Ricardo, like Marx, was a student of business cycles (T/F)

A

False

138
Q

A good or service which has 2 characteristics of which both are necessary conditions is called

A

Normal Good

139
Q

What is a good that is bought in larger quantities as income increases called?

A

Superior Good

140
Q

If demand for wheat is totally elastic, the buyer is a price maker (T/F)

A

True

141
Q

This is horizontal aggregation of MC functions beyond the point of diminishing returns for all member firms in a market is called

A

Supply Curve

142
Q

What is the ultimate burden of tax called?

A

Incidence of tax

143
Q

The notion that consumers derive less satisfaction with each unit of wealth

A

Diminishing MU

144
Q

This is a product standardized by government regulation or industrial convention

A

Homogeneous Products

145
Q

Monopolists operate in the long run or short run?

A

Short Run

146
Q

Where does perfect knowledge take place?

A

Long-Run

147
Q

As price falls, does the Welfare Triangle increase or decrease?

A

Increase

148
Q

The MC function intersects the minimum point of what?

A

Min AC

149
Q

In Perfect Competition, what is assumed about excess profits, where there is equilibrium?

A

Zero

150
Q 
Monopolists left to their own accord would want ⬆️ or ⬇️
Price 
Quantity 
Surplus 
Average Cost
Excess Profit
A 
Price⬆️
Quantity ⬇️
Surplus ⬇️
Average Cost⬆️
Excess Profit ⬆️
151
Q

Classical factors of production

A

Land labor and capital

152
Q

Primary factors of production

A

Land and Labor

153
Q

Land and Labor exists

A

A priori- At the outset

154
Q

Secondary factor of production

A

Capital

155
Q

Classical economists believe that wealth is created by which factor?

A

Labor

156
Q

Labor is represented by what shaped supply curve?

A

Convex

157
Q

The Clayton Anti-Trust Act is the 1890 law that makes monopolistic restraint of trade illegal (T/F)

A

False-The Clayton antitrust act was passed in 1914 which authorized federal judges to issue preliminary injunction’s when they hear evidence that the Sherman Antitrust act has been violated

158
Q

An Asymptote found by dividing FC by the number of units produced

A

AFC

159
Q

The buyer is the price taker if demand is totally inelastic (T/F)

A

True

160
Q

This is when all physical characteristics are identical

A

Homogeneous

161
Q

Demand is the function of?

A

utility

162
Q

Quantity Demanded is the function of

A

Price

163
Q

Effective Demand is a ______ condition of a market transaction

A

Sufficient

164
Q

Demand is a ____ condition

A

Necessary

165
Q

A cost that is zero at zero production and increases as production increases

A

VC

166
Q

The point on a TU function where satisfaction is maximized

A

Satiation Point

167
Q

The Latin term for “all else remains constant”

A

Ceteris Paribus

168
Q

This is the Act that forbids predatory pricing

A

Robinson-Patman Act

169
Q

What is the numerical description of Unit Elastic?

A

1

170
Q

The act of inducing different buyers to pay different prices for the same good

A

Price Discrimination

171
Q

This is an agent of the seller

A

Shill

172
Q

X/0=

A

Infinity

173
Q

Which function of ordinal analysis does Arrow’s theorem explain?

A

Transitivity

174
Q

Name the two lines that separate the quadrants of a graph

A

Axis

175
Q

A value measured on the x axis is called ____, while a value measured on the y axis is called ____.

A

Abscissa

Ordinate

176
Q

When is a firm said to be insolvent?

A

When net worth is negative

177
Q

When is it from said to be illiquid

A

When current liabilities are greater than current assets

178
Q

In accounting, what does the term “liquid” mean?

A

Convertible to cash

179
Q

What kind of an asset is goodwill?

A

Intangible

180
Q

Gross profit less operating expenses plus other revenues equals what?

A

Net income

181
Q

This is a dynamic profit and loss report of the flow of income over a period of time

A

Income statement

182
Q

This is a static report of a firms stock of assets and liabilities at a point in time

A

Balance sheet

183
Q

The use of a capital good is considered an expense (T/F)

A

True-Depreciation expense

184
Q

And indifference curve approaches but does not touch either axis, therefore this curve represents an

A

Asymptote

185
Q

Concave indifference curve represents both

A

Addiction and tolerance

186
Q

More is preferred to less is what theory?

A

Rationality

187
Q

If the price of an inferior good is increased and you buy more of it, this is called a

A

Reverse substitution

188
Q

If TU is increasing, consumption is ____ and MU is ____.

A

Increasing and Decreasing respectively.

189
Q

When TU begins to decrease with consumption, MU starts to become positive or negative?

A

Negative

190
Q

Paying an employee to produce nothing, to sleep on potato sacks, also known as disguised unemployment:

A

Featherbedding

191
Q

First crop limitation is called:

A

Soil banking

192
Q

What is the name of the law that allows the government to sell surplus grains to poor countries?

A

Public law 480

193
Q

How do public law 480 countries pay for the grains?

A

Counterpart Funds

194
Q

What is the government purchase program equation?

A

Parity price times change in Q

195
Q

What is the equation for price differential?

A

Qe times change in price

196
Q

What is the equation for TR

A

P times Q

197
Q

Just price just wage

A

Saint Thomas Aquinas

198
Q

Lyceum

A

Aristotle

199
Q

Indifference Curve

A

Edgeworth

200
Q

Social Security should be replaced by negative income tax

A

Friedman

201
Q

Quantity theory of money

A

Hume

202
Q

Scissor analogy/supply demand

A

Marshall

203
Q

He said, “economics is an engine for the discovery of concrete truths”

A

Marshall

204
Q

Das Kapital/ Business cycles

A

Marx

205
Q

Theories of utilitarian and utility

A

Mill

206
Q

founded the academy

A

Plato

207
Q

Physiocracy

A

Quesnay

208
Q

Classical rent doctrine/labor theory of value

A

Ricardo

209
Q

Capitalism will lead to democratic socialism

A

Schumpeter

210
Q

Wealth of Nations/invisible hand doctrine

A

Smith

211
Q

Equilibrium Theory

A

Walras

212
Q

What is the equation for finding the current value of a bond?

A

CV= R/r

213
Q

What is the order of the queue?

A

PST or price size time

214
Q

Cardinal

A

Value

215
Q

Ordinal

A

Rank

216
Q

3 degrees of price discrimination

A

Perfect price
Quantity discounts
Market separation

Econ (7 decks)

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