Brainscape's Knowledge GenomeTM

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


See full index

EKFN11 ekonomie intro > Literature Flashcards > Flashcards

Literature Flashcards

1
Q

How do banks increase the amount of money in circulation.

A

They loan out the money deposited over and over again, letting multiple people use the same amount.

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

What does credit do

A

Allow us to build the present at the expense of the future.

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

Explain the circle of progress in the modern economy

A

Trust in future=> Credit=> pay COGS=> Profit=> loans payed back => more trust

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

How is greed good?

A

To maximize wealth, corporations transfer wealth for time which leads to heightened demand for products from the general populace leading to increased corporate wealth perpetuating cycle of prosperity.

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

What is the assumption required for altruistic egoism.

A

That wealth is reinvested for further growth.

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

What is the capitalist creed

A

Reinvest profits

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

What differs capital from wealth

A

Capital is invested in production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What defines capitalism

A

Property rights, Markets and firms

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

What is financial accounting

A

It is the way to communicate the past present and future financial status of the company to its owners.

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

Which financial statement is regulated publicly.

A

The closing statement.

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

What questions do accounts illuminate

A

Is the organization making money? Is their money in the organization? If so whose money?

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

What is an example of a resource

A

Machinery and employes

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

What is a stakeholder

A

An entity that provides the resources the company relies on.

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

What is the stakeholder model

A

A model illustrating the organization in the middle surrounded by the owners, creditors, authorities, employees, customers, suppliers, trade unions and ngo’s. Describing entities that the org relies on.

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

Why must the organization fulfill the stakeholders demands and expectations

A

To maintain trust to ensure continued access to the land, labor and capital the company relies on to survive

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

What does it mean for a company to be legitimate

A

To be seen as taking responsibility for issues stakeholders find important

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

What does it mean that legitimacy is contagious in accounting

A

That if one company provides certain information the stakeholders expect the same from others leading to uniformity.

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

Explain the principle agent model

A

It is when a principle relies on an agent to do its biding creating potential issues due to information assymetry

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

Explain information assymetry

A

When for example both parties know that an agent has greater insight in matters regarding the principles assets.

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

How can information asymmetry be addressed.

A

By frequent reporting and inventive structures

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

Why do shareholders and lenders need companies to account

A

To see if they are fit to put their money into and where that money then goes.

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

Why do tax authorities need companies to account.

A

To know how to collect taxes fairly

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

What is the effect of accounting on the overall economy

A

It generates trust which perpetuates the wheel of prosperity by allowing stock markets and banks bridge the information assymetry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Why do customers need companies to accont

A

To determine if the companies financial situation will hinder their delivery

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Why should you learn accounting

A

Because it is allegedly fun and useful

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What are the types of financial statements

A

Income-statement, balance sheet, cashflow statement and notes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is the official definition of accounting

A

The activity of recording transactions, resources and claims, as well as to present a summary in the form of financial statements supplemented by additional information.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is the differences between financial and management accounting

A

Management accounting is for upper management and is thus more detailed and unregulated while financial accounting is for stakeholders and is partly regulated and standardized

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is management controle

A

Using management accounting to implement strategies, culture and values

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What are organizational processes

A

When multiple people try to achieve a complete common goal.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What is organization theory

A

How an activity can be divided and how these parts can be coordinated into a value adding process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What is theoretical pluralism or multi frame analysis

A

To use multiple often contradictory theories, models or points of view to analyze a situation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Which are the two modern organizational frameworks

A

The structural framework and the hr franework

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Describe the structural framework

A

To analyze the organization based on its rules and material incentive structures to see how they guide a rational actor to strengthen the organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What does the structural framework assume about humans.

A

That they are rational actors who act to maximize their material wealth
(homo economicus)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What analysis framework focuses on Efficient processes, specialization and coordination

A

The structural franework

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Describe the hr framework

A

An organizational analysis framework that looks at how the needs of the organization members are fulfilled so that they can work well to strengthen the organization.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What does the hr framework assume about humans

A

That they like to work and will do so if they are given proper means.
(homo ludens)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

What analysis framework espouses committed employees for a successful organization.

A

The hr framework

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

What are two contemporary organization analysis frameworks

A

The power framework and the symbolic framework

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Describe the power framework

A

An organizational analysis framework that maps the political landscape and analyzes how one might act to advantage some at the expense of others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What does the power framework assume about humans

A

That conflict and power struggles are inevitable as actors have different interests. It assumes that humans strive to increase their power
(homo potestas)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

What are the pros and cons of the power framework

A

A pro is that it vanquishes power blindness but a con is that it might miss opportunities for rational and common solutions.
power hyperfixation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Describe the symbolic framework

A

An organization analysis framework where symbols, (common art, language etc) of the organization and the surrounding culture is analyzed to assess how to strengthen the organization.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

What does the symbolic framework assume about humans.

A

That humans are a product of their cultural and thus symbolic context as they seek meaning
(homo socialis)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

What is critical social theory

A

To analyze an organization with an emancipatory lens. To shed light on perceived injustices with the objective to present a way organizations could work as opposed to unbiased analysis.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

What is marketing according to the Chartered institute of marketing

A

The process of identifying, anticipating and satisfying customer needs.

A charter is used to plan ahead;)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

How does the American marketing association define marketing

A

As the activity of creating and communicating offers of value to the recipient.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

How do the french define marketing

A

As the strategy of competitive actors to present themselves as superior compared to the competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

What is an offering or proposition in a marketing context.

A

The formulation of benefits an actor provides.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

What is the difference between a customer and a consumer

A

A customer pays while a consumer uses. So for example this service have you as a consumer but whoever pays for it as a costumer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

What is market orientation

A

It means to have an awareness of the market customer orientation, competitor orientation and your infrastructure coordiantion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

What is customer orientation

A

Creating superior value by adapting to customers needs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

What is competitor orientation

A

To understand your competitors short term strengths and weaknesses and their longterm capabilities and strategies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

What is infrastructure coordination

A

To have the organizations functions work together for long term profit growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

What is market sensing

A

Understanding strategic implications of the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

What fields is marketing influenced by

A

Industrial economics, psychology, sociology, anthropology and computer science

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

What is the difference between sales and marketing

A

Sales focus more on the short term product push while marketing is more research and longterm product pull

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

What is the core of marketing competences

A

Insights championing the customer strategy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

In what different contexts do marketing take place

A

Consumer goods (aka business to consumer) industrial (aka b2b) and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

What is aggregate demmand

A

The total amount of demand in a population

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

What is the promotional mix

A

Advertising, personal selling, digital and direct marketing as well as public relations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

What is the winners curse

A

That the winner becomes liable to pay in a bidding war which can turn out unprofitable

64
Q

What characterizes the consumer goods perspective

A

To sell as much as possible as fast as possible as buyers are many

65
Q

What characterizes the service perspective regarding marketing

A

That services are not tangible and thus are harder to communicate and pattent

66
Q

What characterizes the business to business perspective

A

That buyers are fewer and professional so trust is highly prioritized

67
Q

What is macro marketing studies

A

The study of how marketing affect societies

68
Q

What are the forces that decide the profitability of an industry

A

Bargaining power of suppliers, the threat of new entrants to the market, the bargaining power of buyers and potential substitutes. All increasing the power of industry competitors

69
Q

What are the three generic strategies to outperform other firms.

A

Overall cost leadership, differentiation and focuse

70
Q

Describe the strategy of overall cost leadership

A

To focus on efficiency and cut all cuttable costs to profit where others are at a loss

71
Q

Describe the strategy of differentiation

A

Create brand loyalty by standing out

72
Q

Describe the strategy of focuse

A

To cater to the needs of a specific demographic

73
Q

What is required to implement a strategy of cost leadership

A

Sustained capital access, process engineering, intense supervision, low cost distribution, frequent reporting, structure, target based incentives

74
Q

What are the requirements to implement a strategy of differentiation

A

Strong marketing, creative engineering, good research, strong ethos, good cooperation and coordination, subjective incentivizing and connections to stars

75
Q

What do you need to implement a strategy of focuse

A

Depends on the group you focus on

76
Q

Why is their often a U shaped relationship between profitability and market share.

A

Because the companies in the middle fail to utilize the benefits of the strategies.

77
Q

What is a theory

A

A way of explaining observed patterns of associations between phenomena. The word is also often used simply to refer to background literature.

78
Q

What is middle range theory

A

Theories supported by empirical findings confined to a limited space. Characterized by their application to specific phenomena.

79
Q

What is grand theory

A

Perspectives on how the entire world works.

80
Q

What are empiric findings

A

Observed measurable phenomena

81
Q

Explain the process of deductive inquery

A

Theory => hypothesis => data collection => findings => revision of theory

82
Q

What is possitivism

A

It is an epistemological position that builds on objectivism that states that research should be value free and build on measurable empirics.

83
Q

What is naive empericism

A

That the accumulation of facts is a goal in its own right

84
Q

Explain the inductive research method

A

Observations and findings lead to theory instead of starting with one as in the deductive model

85
Q

What is abductive research

A

Research where collection of data and reflection on theory is mixed and circular.

86
Q

What is theory testing research

A

Build test a theory by creating a hypothesis based on it and test it through statistical inference

87
Q

What is inductive case research

A

Development of a theory based on qualitative data f.ex interviews

88
Q

What is interpretive research regarding data and theory

A

Dialogical process between data and theory.

89
Q

What is ontology

A

Philosophy of what reality is

90
Q

What is objectivism

A

An ontological position that states that phenomena exists separate from the actors and observers. Things are seen as object and thus they have an objective reality.

91
Q

What is constructionism

A

The ontological position that phenomena are made real by the actors and observers.

92
Q

What is interpretivism

A

An epistemological framework that builds on constructionism that relies on the scientists interpreting phenomena to draw conclusions.

93
Q

What is empirical realism

A

The assertion that through appropriate research methods objective reality can be understood

94
Q

What are the four research paradigmes

A

Functionalist, interpratve, radical humanist and radical structuralist

95
Q

What axels are the research paradigms built on

A

If things are interpreted subjectively or objectively and if the intention is radical (judgy) or regulatory (descriptive)

96
Q

Describe the functionalist paradigme

A

Regulatory, objective. Tries to find the rational cause of a problem.

97
Q

Explain the interpretive paradigme

A

Subjective, regulatory. Tries to understand based on the experiences of insiders

98
Q

Explain the radical humanist paradigme

A

Aims to free humans from the claws of organization and researches how

99
Q

Explain the radical structuralist paradigme

A

Research with the viewpoint of structural power relations and the resulting conflicts

100
Q

What is a paradigme

A

A set of beliefs that that influence what is thought should be studied, how research should be done and interpreted

101
Q

What does history’s hockey stick refer to

A

The immense increase in gdp per capita since the start of the industrial revolution

102
Q

What are the two main ways division of labour is coordinated in a capitalist economy

A

By firms and markets

103
Q

How do firms and markets differ in their coordination of the division of labor

A

A firm is an autocracy while all actors in a market are mostly independant

104
Q

What is the difference between a labor contract and the sales contract

A

A labor contract gives the buyer time restricted authority over the seller while a sales contract transfers property rights.

105
Q

What does property rights mean.

A

That the owner has right to use and restrict usage over the object and that the owner can transfer this right.

106
Q

What is a residual claimant

A

Someone who claims the residual aka the profits, what is left of review after payments

107
Q

What is the free rider problem in a corporation

A

That powerful agents such as managers abuse their position to enrich themselves when their is information asymmetry.

108
Q

What is a common method to pay managers motivated by principle agent theory

A

To base their salary on the share price

109
Q

What is an incomplete contract

A

A contract that does not mention all expectations of the parties

110
Q

Why might contracts be incomplete

A

Because the claims might not be verifiable or measurable and there might future uncertainties or simple preference to not state some things.

111
Q

What is malthusianism

A

The assumption that any increased wealth would be spent on larger families negating increase in living standards

112
Q

What is the malthusian cycle

A

The cycle of increased population followed by famine that permeated preindustrial society without real increase in living standards

113
Q

How is a model constructed

A

A circumstance is briefly described, then we describe its causes and outcomes and at last we test what changes when variables change

114
Q

What is meant by ceteris paribulus

A

All things being equal. Ignore the noice of reality and change only one variable.

115
Q

What is a relative price

A

One price relative to another for two largely similar products

116
Q

What is economic rent

A

Economic rent = benefit - benefit from next best option. Opposite of opportunity cost

117
Q

How does one evaluate cost of using different technologies

A

Cost = wageworker + costOfuses

118
Q

What is an isocost line

A

A line connecting all combinations of labor and tech costing the same. Expressed as y=a+bx

Linear equation of combination

119
Q

What is marginal change

A

The difference from the next point at the margin of a curve. F.ex if Alex gains a pound for every sandwich he eats during a day the marginal product is 1 pound

120
Q

What is an indifference curve

A

A curve made up of a combination of things that consume a limited resource where different tradeoffs have presumed equal value.

121
Q

What is opportunity cost

A

The fact that by doing one thing you might miss out on other opportunities.

122
Q

What is the marginal rate of substitution

A

Measures the willingness for tradeof at the margin

123
Q

What is marginal rate of transformation

A

Measures the tradeoff constrained by the feasibility frontier that marks where the opportunity cost becomes to high.

124
Q

Given a graph showing an indifference curve and a feasibility frontier what combination is chosen.

A

MRS = MRT at the point the graphs intersect

125
Q

What is a reservation price

A

The lowest price a good is willingly sold for. Lowest willingness to accept WTA

126
Q

What is a supply curve

A

A curve showing how many goods would be produced at any given price.

127
Q

What is a demand curve

A

A curve showing how many units would be bought at any given price

128
Q

What is the equilibrium price

A

The price that equates both supply and demand

129
Q

What is a nash equilibrium

A

A strategy that best matches the strategy of everyone else

130
Q

What is the market clearing price

A

The price where there is equalibrium

131
Q

What is a price taker

A

An actor that has many alternatives, such as a buyer among many sellers or a seller among many buyers

132
Q

What is a competitive equalibrium

A

A market outcome where all actors are price takers and the outcome reaches supply demand equilibrium

133
Q

What does it mean when the market clears

A

That the quantity demanded equals the quantity supplied

134
Q

What is Pareto efficiency

A

A market outcome where no more beneficial transaction can be made

135
Q

What constitutes a market failure

A

Pareto inefficiency both positive and negative

136
Q

When is a market Pareto efficient

A

When production does not affect third parties

137
Q

What is an externality or external effect when talking Pareto efficiency

A

A side affect of production imposing extra costs or benefits external to the contract

138
Q

What is environmental spillover

A

That private benefits may impose external costs on others

139
Q

Which distributions are generally considered not appropriately handled by markets

A

Distribution of repugnant goods (things people want to deny others selling) and merit goods (things people want to ensure everyone has)

140
Q

Give some examples of repugnant markets

A

The drug market, human trafficking and selling votes

141
Q

Give some examples of merit goods

A

Schooling, healthcare, protection by law

142
Q

What positive effects can public policy have on markets

A

To moderate fluctuations in inflation and employment as well as improving working conditions, looking out for the long run and acting as a mediator

143
Q

What is the aggregate econnomy

A

The sum pf all the economies parts

144
Q

What is gdp

A

The aggregate output, the value of all products and services produced in an area for a year.
Gross Domestic Product

145
Q

How can gdp be calculated

A

By the total spending on products, By the value added through production (not double counting value of input) and through the sum of all income received.

146
Q

What is the formula for gdp

A

Y = (C)onsumption + (I)nvestment + (G)overnment spending + e(X)ports - i(M)ports

147
Q

What is net exports or trade balance

A

Value of exports minus imports deciding if there is a trade surplus or deficit.

148
Q

What are some shortcomings of GDP

A

It does not take externalities into account and is largely swayed by population

149
Q

Why does inflation reduce debt

A

Because debt is denominated in a currency not a value so if the currency becomes less valued it is easier to repay the debt

150
Q

What is fiscal policy

A

Macroeconomic controls done by the government. How they spend, tax, loan and inflate

151
Q

What is monetarily policy

A

Macroeconomic policy done by the central bank. Setting interest rates

152
Q

What is intermediate goods

A

Goods used in the production of other goods, not counted in gdp

153
Q

What is conspicuous consumption

A

Consumptions others see and can get jealous by

154
Q

How can trade negate fiscal stimulus

A

If the additional cash is spent on foreign goods it cannot kickstart the national economy as the money dos not go to wages and so no growing demand that can motivate increased supply.

155
Q

How does imports dampen domestic fluctuations in price

A

Domestic producers are less likely to be affected by national problems or successes and as they are relatively isolated they don’t contribute as much to spirals

EKFN11 ekonomie intro (1 decks)

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