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Econ 499 - Micro > Random Review > Flashcards

Random Review Flashcards

1
Q

Globalization

A

The process of greater interdependence among countries and their citizens. Increased interaction of product and resource markets.

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2
Q

Waves of Globalization (dates)

A
  1. Industrial - WWI (1870-1914)
  2. WWII - 1980’s (1945-1980)
  3. 80’s - Present (1980-Now)
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3
Q

Equation for Openness

A

(Exports + Imports) / GDP

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4
Q

Fallacies of International Trade

A
  1. Zero-sum game
  2. Imports = bad, exports = good
  3. Tariffs, quotas, etc. save jobs and promote employment
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5
Q

Absolute Advantage

A

When a country can produce more of any set of goods with fewer inputs.

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6
Q

Commodity Terms of Trade

A

(Export Price Index / Import Price Index) x 100

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7
Q

Heckscher-Ohlin Theory

A

Factor endowment

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8
Q

Overlapping Demand Theory

A

Rich countries want more expensive goods and poor countries demand cheap goods

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9
Q

Increasing Opportunity Costs

A

Curve is bowed outward

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10
Q

Cyclical Unemployment

A

Results from fluctuation in economic activity–business cycles
(Ideal level = 0)

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11
Q

Frictional Unemployment

A

People moving from one job to another; includes seasonal unemployment
(ideal level = 2-2.5%)

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12
Q

Structural Unemployment

A

Open jobs but people don’t have necessary skills

ideal level = 2-2.5%

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13
Q

Unemployment Rate

A

(# of unemployed persons / labor force) x 100

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14
Q

Employment Act of 1946

A

Gives responsibility to government to create full employment (aka 4.5%)

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15
Q

Technical Efficiency

A

Any point along the production possibilities curve - infinite number of points

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16
Q

Allocative Efficiency

A

ONE POINT along the curve that makes society’s overall welfare/ satisfaction as high as it can be.

17
Q

Law of Increasing Relative Costs

A

In order to get extra amounts of one good, society must sacrifice ever-increasing amounts of other goods.

18
Q

Determinants of Investment

A
  1. Cost of production
  2. Taxes
  3. Technological change
  4. Stock of Capital Goods
  5. Expectations
19
Q

Determinants of Consumption

A
  1. Consumers’ accumulated wealth
  2. Price level
  3. Economic expectations
  4. Current levels of debt
  5. Stock of durable goods
  6. Taxes
20
Q

Determinants of Demand

A
  1. Income
  2. Price of related goods
  3. Future prices
  4. Tastes/ preferences
  5. Advertising
21
Q

Determinants of Supply

A
  1. Price of inputs
  2. Number of sellers
  3. Technology (automation)
  4. Weather
  5. Political disruptions
  6. Price of related goods
22
Q

Determinants of Elasticity

A
  1. Availability of substitutes
  2. Proportion of income
  3. Luxury v. Necessity
  4. Elapsed time of purchase choice
23
Q

Ranges of Elasticity

A

In terms of absolute value:
> 1 = Elastic
< 1 = Inelastic
= 1 = Unit elastic

24
Q

Longitudinal Data

A

Many entities over time

25
Q

Cross Sectional Data

A

Many entities one time period

26
Q

Delphi Method

A

Employs independent party to elicit a consensus opinion

27
Q

Time Series Data

A

One entity over time

28
Q

Oligopoly Characteristics

A
  1. Few sellers
  2. Unique or homogeneous product
  3. Blocked entry/ exit
  4. Imperfect information
29
Q

Monopolistic Competition Characteristics

A
  1. Large # of buyers and sellers
  2. Comparable and differentiated products
  3. Free entry and exit
  4. Perfect information
30
Q

Perfect Competition Characteristics

A
  1. Large # of buyers
  2. Large # of sellers
  3. Identical product
  4. Free entry/ exit
  5. Perfect information
31
Q

Monopoly Characteristics

A
  1. One seller
  2. Unique product
  3. Blocked entry and exit
  4. Imperfect information
32
Q

Opportunity Cost of Good “A”

A

(maximum production of “b”) /

maximum production of “a”

33
Q

Cobb-Douglas Production Fcn

A

Q = a * K^alpha * L^beta

alpha + beta = 1 => constant returns

34
Q

Point Elasticity of Demand

A

dQ/dP * P/Q

Econ 499 - Micro (12 decks)

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