Brainscape's Knowledge GenomeTM

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


See full index

BASIC MICROECONOMICS > M2 > Flashcards

M2 Flashcards

1
Q

refer to the entities that make up the economy and engage in various economic activities.

A

BASIC ECONOMIC UNITS

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

what are the basic microeconomic units

A
  • HOUSEHOLD
  • FIRMS
  • GOVERNMENT
  • FOREIGN SECTOR
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

plays a crucial role in the functioning of the economy by participating in production, consumption, distribution, and exchange of goods and services.

A

BASIC ECONOMIC UNITS

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

what roles do basic economic units play

A
  • PRODUCTION
  • CONSUMPTION
  • DISTRIBUTION
  • EXCHANGE OF GOODS AND SERVICES
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

consist of individuals or groups of people living together who make decisions about consumption, savings, and labor supply.

A

HOUSEHOLD

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

ROLES AND FUNCTIONS OF HOUSEHOLD

A
  • CONSUMPTION
  • LABOR SUPPLY
  • SAVINGS
    -INVESTMENT
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Examples of household

A
  • FAMILIES
  • SINGLE INDIVIDUALS
  • ROOMMATES
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

business organizations that produce goods and services to sell in the market.

A

FIRMS

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

They utilize factors of production (land, labor, capital, and entrepreneurship) to create outputs.

A

FIRMS

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

ROLES AND FUNCTIONS OF FIRMS

A
  • PRODUCTION
  • EMPLOYMENT
  • INVESTMENT
  • INNOVATION
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

EXAMPLES OF FIRMS

A
  • SMALL BUSINESSES
  • MULTINATIONAL CORPORATIONS
  • STARTUPS
  • MANUFACTURING PLANTS
  • SERVICE PROVIDERS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

the public sector entity that provides public goods and services

A

GOVERNMENT

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

regulates economic activity, and implements policies to achieve economic objectives.

A

GOVERNMENT

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

ROLES AND FUNCTIONS OF GOVERNMENT

A
  • PUBLIC GOODS AND SERVICES
  • REGULATION
  • REDISTRIBUTION
  • FISCAL AND MONETARY POLICY
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The government uses ___ (taxation and spending) and, through the central bank, monetary policy (control of the money supply and interest rates) to influence economic activity and achieve macroeconomic goals like growth, employment, and price stability.

A

FISCAL POLICY

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

REGULATIONS INCLUDE

A
  • LABOR LAWS
  • ENVIRONMENTAL STANDARDS
  • ANTITRUST LAWS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

primary consumers of goods and services produced in the economy.

A

HOUSEHOLD

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

The government implements policies to redistribute income and wealth through ____

A

TAXATION AND SOCIAL WELFARE PROGRAMS

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

EXAMPLES OF GOVERNMENT IN ECONOMIC UNITS

A
  • FEDERAL
  • STATE
  • LOCAL GOVERNMENTS
  • CENTRAL BANKS
  • REGULATORY AGENCIES
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

consists of all external entities with which an economy interacts, including foreign households, firms, and governments.

A

FOREIGN SECTOR

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

This sector is integral to the global economy and influences trade and financial flows.

A

FOREIGN SECTOR

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

The foreign sector includes ____, where firms invest in production facilities in other countries, and portfolio investment, where investors purchase foreign financial assets.

A

FOREIGN DIRECT INVESTMENT (FDI)

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

Exchange rates influences:

A

TRADE BALANCES AND CAPITAL FLOWS

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

highlights the interconnectedness of global economies,

A

FOREIGN SECTOR

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

EXAMPLES OF FOREIGN SECTORS

A
  • INTERNATIONAL TRADE PARTNERS
  • MULTINATIONAL CORPORATIONS
  • FOREIGN INVESTORS
  • GLOBAL FINANCE MARKETS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

are fundamental to the functioning of an economy

A

BASIC ECONOMIC UNITS

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

UNDERSTANDING BASIC ECONOMIC UNITS IS IMPORTANT FOR ____

A

analyzing economic activity and developing effective economic policies.

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

fundamental for understanding the measurement and analysis of economic variables over time.

A

CONCEPT OF STOCK AND FLOW

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

help differentiate between quantities that are measured at a specific point in time and those measured over a period of time.

A

STOCK AND FLOW

30
Q

The total value of physical assets available in an economy at a given time.

A

CAPITAL STOCK

31
Q

The total amount of money (currency, bank deposits) available in an economy at a specific point in time.

A

MONEY SUPPLY

32
Q

The amount of finished goods, raw materials, and work-in-progress that firms have on hand at a particular moment.

A

INVENTORY

33
Q

The total value of all assets owned by individuals or firms at a given time, including real estate, stocks, bonds, and savings.

A

WEALTH

34
Q

Measured at a specific point in time (e.g., end of a quarter, end of a year).

A

STOCK

35
Q

Reflects the accumulation of past flows.

A

STOCK

36
Q

quantity measured over a period of time.

A

FLOW

37
Q

represents the rate at which a stock changes due to economic activities.

A

FLOW

38
Q

dynamic and indicate how stocks are accumulated or depleted over time.

A

FLOW

39
Q

The amount of money earned by individuals or firms over a period of time (e.g., monthly salary, annual profit).

A

INCOME

40
Q

The total amount of money spent on acquiring new capital assets over a period of time.

A

INVESTMENT

41
Q

The total value of goods and services produced in an economy over a specified period (e.g., quarterly, annually).

A

GROSS DOMESTIC PRODUCT

42
Q

The portion of income that is not consumed and is set aside over a period of time.

A

SAVINGS

43
Q

Measured over a period of time (e.g., weekly, monthly, annually).

A

FLOW

44
Q

Indicates the rate of change in stock variables.

A

FLOW

45
Q

IMPORTANCE OF STOCK AND FLOW TO ECONOMIC ANALYSIS

A
  • MEASUREMENT AND TRACKING
  • POLICY IMPLICATIONS
  • ECONOMIC MODELING
  • MACROECONOMIC STABILITY
46
Q

The concepts of stock and flow are essential for

A

comprehending the dynamics of economic variables.

47
Q

Understanding these concepts and their interrelationships is fundamental for economic analysis, policy formulation, and effective economic management.

A

STOCK AND FLOW CONCEPT

48
Q

illustrates the movement of money, goods, and services within an economy.

A

FLOW OF INCOME

49
Q

TWO MAIN SECTORS OF FLOW OF INCOME

A
  • HOUSEHOLDS
  • FIRMS
50
Q

can be visualized as a continuous loop, where money flows from households to firms and back to households, facilitating the exchange of goods, services, and factors of production

A

FLOW OF INCOME

51
Q

This model helps illustrate how different parts of the economy are interconnected and how income circulates within an economy.

A

FLOW OF INCOME

52
Q

PRODUCTION PROCESS FLOW STEPS

A
  • RESOURCE ALLOCATION
  • PRODUCTION
  • INCOME GENERATION
  • GOODS AND SEVICES DISTRIBUTION
  • CONSUMPTION AND SPENDING
  • REINVESTMENT
53
Q

IMPORTANCE OF PRODUCTION PROCESS

A
  • ECONOMIC ACTIVITY
  • INCOME DISTRIBUTION
  • INVESTMENT AND GROWTH
  • MARKET DYNAMICS
54
Q

Interaction between supply and demand for goods and services affects

A
  • PRICES
  • PRODUCTION LEVELS
  • ECONOMIC STABILITY
55
Q

crucial for understanding how resources are transformed into goods and services, how income is generated and distributed, and how economic agents interact within the economy.

A

PRODUCTION PROCESS FLOW

56
Q

his model highlights the interdependencies between different sectors and provides a framework for analyzing economic activity, policy impacts, and the overall health of the economy.

A

PRODUCTION PROCESS FLOW

57
Q

FLOW OF GOODS ECONOMIC AGENTS

A
  • FIRMS TO FIRMS (INTERMEDIATE GOODS)
  • FIRMS TO HOUSEHOLD (FINAL GOODS)
  • HOUSEHOLD TO FIRMS (LABOR AND CAPITAL)
58
Q

IMPORTANCE OF FLOW OF GOODS

A
  • ECONOMIC INTERDEPENDENCE
  • VALUE ADDITION
  • EFFICIENCY AND PRODUCTIVITY
  • MARKET DYNAMICS
59
Q

highlights the interdependence of various industries.

A

FLOW OF GOODS

60
Q

fundamental concept in economics, illustrating how raw materials are transformed into final products through various stages of production.

A

FLOW OF GOODS

61
Q

involves multiple economic agents and sectors, each adding value and contributing to the overall economic activity.

A

FLOW OF GOODS

62
Q

Understanding this flow is crucial for analyzing supply chains, production efficiency, and the interconnections between different industries in the economy.

A

FLOW OF GOODS

63
Q

model that depicts how money, goods, services, and factors of production move through an economy.

A

ECONOMIC ACTIVITY INFLOWS AND OUTFLOWS

64
Q

This model shows the interactions between different economic agents—households, firms, the government, and the foreign sector— highlighting the inflows and outflows within the economy.

A

ECONOMIC ACTIVITY INFLOWS AND OUTFLOWS

65
Q

REAL FLOW

A

INNER FLOW

66
Q

MONETARY FLOW

A

OUTER FLOW

67
Q

INNER FLOWS EXAMPLES

A
  • GOODS AND SERVICES
  • FACTORS OF PRODUCTION
68
Q

OUTERFLOWS EXAMPLES

A
  • INCOME PAYMENTS
  • CONSUMPTION EXPENDITURE
  • TAXES
  • GOVERNMENT SPENDING
  • EXPORTS AND IMPORTS
69
Q

captures the continuous movement of money, goods, services, and factors of production within an economy.

A

ECONOMIC ACTIVITY INFLOWS OUTFLOWS

70
Q

this model helps to understand how different parts of the economy are interconnected and how economic activities are sustained.

A

ECONOMIC ACTIVITY INFLOWS OUTFLOWS

BASIC MICROECONOMICS (7 decks)

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