Brainscape's Knowledge GenomeTM

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


See full index

ECON 2301 > mid-term > Flashcards

mid-term Flashcards

1
Q

What is GDP per capita?

A

GDP divided by the population

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

In order to achieve modern economic growth, a nations _____ must grow faster than its ______-.

A

Output, population

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

What is a recession?

A

An extended period of declining output and living standards

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

What are the main focuses for measuring the health of the macro-economy?

A

Real GDP, Inflation, Unemployment, Real GDP Inflation interest rates

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

What is nominal GDP?

A

measures a nation’s output in current year prices.

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

What is the business cycle primarily concerned with?

A

Changes in the level of overall prices over time.

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

How much is consumption in the US?

A

About 68% of GDP and it moves relatively little over time.

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

What is GDP?

A

The value of all final goods and services produced domestically

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

What type of GDP is least likely to overstate or understate actual performance?

A

Real nominal international, Real classical

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

The demand measure of GDP accounting adds together

A

Consumption, investment, government purchases, and trade balance

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

What is the current round of World Trade Organization negotiations?

A

Doha round

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

The slope of the production possibility frontier is determined by the ________________ of expanding production of one good, measured by how much of the other good would be lost.

A

Opportunity cost

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

What are tariffs?

A

Taxes that governments place on exported goods for a variety of reasons.

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

When one nation can produce a product at lower cost relative to another nation, it is said to have an __________________ in producing that product.

A

Absolute advantage

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

The idea behind comparative advantage reflects the possibility that one party

A

May be able to produce something at a lower opportunity cost than another party

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

What concept provides the basic rationale for international trade?

A

Comparative advantage

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

The World Trade Organization is committed to…

A

lowering barriers to trade

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

The primary benefits of international trade include…

A

the more efficient use of world resources and higher standards of living

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

When might inefficient outcomes occur?

A

When demand curves do not reflect the total social benefit of producing a good or service

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

What is intellectual property?

A

The body of law including patents, trademarks and copyrights that protect the right of inventors.

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

What are positive externalities?

A

Benefits that spillover to a third party or parties

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

What is a shortcoming of the market?

A

The market demand curve does not always reflect the positive externalities of the good or service.

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

What is an approach to positive externalities?

A

For the government to levy taxes on the related good or service.

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

The demand curve shows the relationship between…

A

price and quantity demanded

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

What is income effect?

A

When the price of a product increases, a consumer is able to buy less of it with a given money income

26
Q

When is a market in equilibrium?

A

If the amount producers want to sell is equal to the amount consumers want to buy

27
Q

When would a price be too high to clear the market?

A

When quantity supplied exceeds quantity demanded

28
Q

What is scarcity?

A

Wants exceed rescources

29
Q

What is macroeconomics?

A

The study of aggregate decisions made by the economy as a whole

30
Q

What is the business cycle?

A

Alternating periods of econ. growth & contraction

31
Q

What is the law of demand?

A

Amount of a good demanded in a time period, increases as its price falls

32
Q

What is a recession?

A

A decline in real GDP for 2 or more consecutive quarters

33
Q

What is a growth recession?

A

A period when real GDP grows, but at a rate below the long-term trend of 3%

34
Q

What are externalities?

A

Costs or benefits of market activity by 3rd party

35
Q

What are private goods?

A

Only 1 person consumes a good or service

36
Q

What are public goods?

A

More than one more person consumes goods or services

37
Q

What is a price ceiling?

A

The maximum amount allowed to be charged by law

38
Q

What is a price floor?

A

The minimum price allowed to be charged by law

39
Q

What is a consumer surplus?

A

The difference between the maximum price a consumer is willing to pay and the actual price of the good or service

40
Q

What is a producer surplus?

A

The difference between the actual price of the good or service and the minimum price the producer is willing to sell the good or service for

41
Q

What is an economic surplus?

A

Consumer surplus + producer surplus

42
Q

What is a deadweight loss?

A

The loss of an economic surplus

43
Q

What happens to the equilibrium if the demand increases?

A

Increases prices and quantity

44
Q

What happens to the equilibrium if the demand decreases ?

A

Decreases price and quantity

45
Q

What happens to the equilibrium if the Supply increases?

A

increases quantity and decreases prices

46
Q

What happens to the equilibrium if the supply decreases?

A

Decreases in quantity and increase in price

47
Q

What are sunk costs?

A

Incurred costs which cannot be recovered

48
Q

What is absolute advantage?

A

A company/country can produce a good more efficiently and productively

49
Q

What are consumption expenditures?

A

Spending of households goods and services

50
Q

What is gross private investment?

A

Includes final purchases on capital goods, construction, and changes in inventory

51
Q

What is gross national product?

A

Measures what is produced by domestic businesses abroad and labor abroad

52
Q

What is nominal income?

A

The number of dollars received in wages, interest, and rent

53
Q

What is real income?

A

The amount of goods and services the dollars can buy

54
Q

What is deflation?

A

Decrease in the price level

55
Q

What is hyperinflation?

A

Rapidly increasing inflation

56
Q

What is frictional unemployment?

A

Consists of search unemployment and wait unemployment. (between jobs)

57
Q

What is structural unemployment?

A

Mismatch in workers skills to the skills that are actually needed

58
Q

What is cynical unemployment?

A

Results from a decline in total spending

59
Q

What is labor productivity?

A

The value that each employed person creates per unit of his/her output

60
Q

What is convergence?

A

Pattern in which economies with low per capita income grows faster than economies with high per capita increases

61
Q

What is a recessionary GDP gap?

A

Amount that equilibrium falls short of full-employment GDP

62
Q

What is a inflationary GDP gap?

A

Amount that equilibrium GDP exceeds full-employment GDP

ECON 2301 (1 decks)

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