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Econ > midterm vocab > Flashcards

midterm vocab Flashcards

1
Q

Economics

A

The study of Individuals, Buisnesses, and gov

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2
Q

Macro

A

the study as a whole

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3
Q

micro

A

the study smaller/ individually

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4
Q

Scarcity

A

the lack of a resource
ie; goods/services/labor

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5
Q

goods and services market;

labor markets;

A

in a goods and services market; firms are sellers, households are buyers

in a labor market; households are sellers, firms are buyers

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6
Q

different types of economies

Traditional
command
market
underground

A

Traditional- oldest, consume what you produce, little economic progression

Command- gov is mainly in charge they make all the rules

market- individuals/businesses offer goods and services and the gov just oversees

underground- black market

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7
Q

Globalization

A

a way to measure international trade
-expanding globally

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8
Q

GDP

A

measures the size of total production within a country/economy

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9
Q

Imports and exports

A

Imports- domestically sold
exports- sold abroad

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10
Q

opportunity cost

A

the cost of one item is the lost opportunity to purchase or do something else (what you are giving up for that product)

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11
Q

sunk cost

A

cost previously incurred and cannot be recovered
(past transaction that you cannot make-up)

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12
Q

Utility

A

the satification of the product; how much it is wanted

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13
Q

marginal analysis

A

pros and cons of choosing more or less of a good

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14
Q

Productive Efficiency

A

when it is impossible to produce more of one good without decreasing the quantity produced of another

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15
Q

Allocative Efficiency

A

producers supply only what is demanded by society

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16
Q

comparative advantage

A

the ability of a country to produce a good at a lower opportunity cost then another country

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17
Q

absolute advantage

A

the ability of a country to produce more of a good than another country

18
Q

invisible hand

A

individuals “self-interest behavior can lead to positive social outcomes”

19
Q

shortage

A

when demand is higher than the production rates

20
Q

Price celling

A

keeps prices below a “Certain” level

21
Q

Price floor

A

Keeps prices from “falling” below a set level

22
Q

consumer
producer
and social (total) surplus

A

consumer- area above the market price and below the demand curve, represents the price consumers are willing to pay above the actual market cost (price they paid)

Producer- area below the market price and above the supply curve, represents the price consumers paid (market) above the price at which producers were willing to sell

Social (total)- sum of consumer and producer surplus

23
Q

equilibrium

A

Quantity demanded EQUALS quantity supplied

24
Q

Elasticity and price elasticity

A

Elasticity- measures the responsiveness of one variable to another

Price elasticity- the ratio between the % of change in the quantity demanded or quantity supplied and the corresponding change in price

25
Q

Unitary Elasticity

A

proportional responsiveness to either supply or demand based on price change

26
Q

Perfect Elasticity

A

is highly responsive to price changes

27
Q

Perfect inelasticity

A

does not respond to any change in price

28
Q

trade surplus

A

exports are greater than imports

29
Q

Trade deficit

A

imports are greater than exports

30
Q

Real GDP

A

GDP adjusted for inflation

31
Q

Depression

A

lengthy and deep recession

32
Q

recession

A

last from peak to trough, significant decline in real GDP

33
Q

Aggregate production function

A

illustrates the connection between inputs and outputs

34
Q

Capital deepening

A

increase in the level of capital, per person

35
Q

Convergence

A

the pattern of economies with low per capita incomes growing faster than economies with high per capita income

36
Q

Labor force
employed
unemployed
out of the labor force

A

Labor force- number of employed plus number of unemployed

Employed- currently working for pay

Unemployed- out of work, available to work and looking for work during the previous four week period

out of the labor force- out of work and not actively looking for work

37
Q

Cyclical unemployment

A

Variation in unemployment as the economy moves through the business cycle

38
Q

natural rate of unemployment
Frictional
structural

A

Natural rate- level of unemployment in a growing and healthy economy from the combination of economic, social, and political factors

Frictional- moving between jobs

Structural- occurs because workers lack skill

39
Q

Consumer price index

A

the most commonly used measure of inflation
-bases on prices of a fixed basket of goods

40
Q

Core inflation index

A

Excludes volatile variables such as energy and food

41
Q

Unilateral transfers

A

payments the gov, individuals, or charities send abroad without receiving any direct good or service

Econ (4 decks)

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