Brainscape's Knowledge GenomeTM

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


See full index

Econ 11 > Second exam > Flashcards

Second exam Flashcards

1
Q

the amount a firm receives for the sale of its output

A

total revenue

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

the market value of the inputs a firm uses in production

A

total cost

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

total revenue - total cost

A

profit

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

input costs that require an outlay of money by the firm

A

explicit cost

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

input costs that do not require an outlay of money by the firm

A

implicit cost

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

total revenue minus total cost, including both explicit and implicit costs

A

economic profit

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

total revenue - total explicit cost

A

accounting profit

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

the relationship between quantity of inputs used to make a good and the quantity of output of that good

A

production function

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

the increase in output that arises from an additional unit of input

A

marginal product

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

the property whereby the marginal product of an output declines as the quantity of the input increases

A

diminishing marginal product

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

costs that do not vary with the quantity of output produced

A

fixed costs

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

costs that vary with the quantity of output produced

A

variable costs

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

total cost divided by the quantity of output

A

average total cost

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

fixed cost divided by the quantity of output

A

average fix cost

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

variable cost divided by the quantity of output

A

average variable cost

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

the increase in total cost that arises from an extra unit of production

A

marginal cost

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

the quantity of output that minimizes average total cost

A

efficient scale

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

the property whereby long-run average total cost falls as the quantity of output increases

A

economies of scale

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

he property whereby long-run average total cost rises as the quantity of output increases

A

diseconomies of scale

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

the property whereby long-run average total cost stays the same as the quantity of output changes

A

constant returns to scale

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

a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker

A

competitive market

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

total revenue divided by the quantity sold

A

average revenue

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

the change in total revenue from an additional unit sold

A

marginal revenue

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

a cost that has already been committed and cannot be recovered

A

sunk cost

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

a firm that is the sole seller of a product without close substitutes

A

monopoly

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

a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms

A

natural monopoly

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

the business practice of selling the same good at different prices to different customers

A

price discrimination

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

a market structure in which many firms sell products that are similar but not identical

A

monopolistic competition

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

a market structure in which only a few sellers offer similar or identical products

A

oligopoly

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

the study of how people behave in strategic situations

A

game theory

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

an agreement among firms in a market about quantities to produce or prices to change

A

collusion

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

a group of firms acting in unison

A

cartel

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

a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen

A

nash equilibrium

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

a particular “game” between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial

A

prisoner’s dilemma

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

a strategy that is best for a player in a game regardless of the strategies chosen by the other players

A

dominant strategy

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

the percentage of the population whose family income falls below an absolute level called the poverty line

A

poverty rate

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

an absolute level of income set by the federal government for each family size below which a family is deemed to be in poverty

A

poverty line

38
Q

transfers to the poor given in the form of goods and services rather than cash

A

In-kind Transfers

39
Q

the regular pattern of income variation over a person’s life

A

Life Cycle

40
Q

a person’s normal income

A

Permanent Income

41
Q

the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society

A

Utilitarianism

42
Q

a measure of happiness or satisfaction

A

Utility

43
Q

the political philosophy according to which the government should choose policies deemed just, as evaluated by an impartial observer behind a “veil of ignorance”

A

Liberalism

44
Q

the claim that the government should aim to maximize the well-being of the worst-off person in society

A

Maximin Criterion

45
Q

government policy aimed at protecting people against the risk of adverse events

A

Social Insurance

46
Q

the political philosophy according to which the government should punish crimes and enforce voluntary
agreements but not
redistribute income

A

Libertarianism

47
Q

government programs that supplement the incomes of the needy

A

Welfare

48
Q

a tax system that collects revenue from high-income households and gives subsidies to low-income households

A

Negative Income Tax

49
Q

the total number of workers, including both the employed and the unemployed

A

Labor Force

50
Q

the percentage of the labor force that is unemployed

A

Unemployment Rate

51
Q

the percentage of the adult population that is in the labor force

A

Labor-force participation rate

52
Q

the normal rate of unemployment around which the unemployment fluctuates

A

Natural rate of unemployment

53
Q

the deviation of unemployment from its natural rate

A

Cyclical unemployment

54
Q

individuals who would like to work but have given up looking for a job

A

Discouraged workers

55
Q

unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills

A

Frictional
unemployment

56
Q

unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one

A

Structural
unemployment

57
Q

the process by which workers find appropriate jobs given their tastes and skills

A

Job search

58
Q

a government program that partially protects workers’ incomes when they become unemployed

A

Unemployment
Insurance

59
Q

a worker association that bargains with employers over wages, benefits, and working conditions

A

Union

60
Q

the process by which unions and firms agree on the terms of employment

A

Collective Bargaining

61
Q

the organized withdrawal of labor from a firm by a union

A

strike

62
Q

above-equilibrium wages paid by firms to increase worker productivity

A

efficiency wages

63
Q

he limit on the consumption bundles that a consumer can afford

A

budget constraint

64
Q

a curve that shows consumption bundles that give the consumer the same level of satisfaction

A

indifference curve

65
Q

the rate at which a consumer is willing to trade one good for another

A

marginal rate of substitutes

66
Q

two goods with straight-line indifference curves

A

perfect substitutes

67
Q

two goods with right-angle indifference curves

A

perfect complements

68
Q

a good for which an increase in income raises the quantity demanded

A

normal good

69
Q

a good for which an increase in income reduces the quantity demanded

A

inferior good

70
Q

the change in
consumption that results when a price change moves the consumer to a higher or lower indifference curve

A

income effect

71
Q

the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution

A

substitution effect

72
Q

good for which an increase in the price raises the quantity demanded

A

giffen good

73
Q

a theory asserting that the quantity of money available determines the price level and that the growth rate in the quantity of money available determines the inflation rate

A

Quantity Theory of Money

74
Q

variables measured in monetary units

A

Nominal Variables

75
Q

variables measured in physical units

A

Real Variables

76
Q

the theoretical separation of nominal and real variables

A

Classical Dichotomy

77
Q

the proposition that changes in the money supply do not affect real variables

A

Monetary Neutrality

78
Q

the rate at which money changes hands

A

Velocity of Money

79
Q

the equation M x V x P x Y, which relates the quantity of money, the velocity of money, and the dollar value of the economy’s output of goods and services

A

Quantity Equation

80
Q

the revenue the
government raises by creating money

A

Inflation Tax

81
Q

the one-for-one
adjustment of the nominal interest rate to the inflation rate

A

Fisher Effect

82
Q

the resources wasted when inflation encourages people to reduce their money holdings

A

Shoeleather cost

83
Q

the costs of changing prices

A

Menu costs

84
Q

the price of a good that prevails in the world market for that good

A

world price

85
Q

tax on goods produced abroad and sold domestically

A

tariff

86
Q

he quantity of goods and services produced from each unit of labor input

A

productivity

87
Q

the stock equipment and structures that are used to produce goods and services

A

Physical Capital

88
Q

the knowledge and skills that workers acquire through education, training, and experience

A

Human Capital

89
Q

the inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits

A

natural resources

90
Q

society’s understanding of the best ways to produce goods and services

A

Technological Knowledge

91
Q

the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases

A

diminishing return

92
Q

the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich

A

catch-up effect

Econ 11 (7 decks)

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