Brainscape's Knowledge GenomeTM

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


See full index

Macro Econ > Test 1 > Flashcards

Test 1 Flashcards

1
Q

Scarcity

A

Evers to the limited nature of society’s resources, given their unlimited wants and needs

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

Economics

A

The study of how people allocate their limited resources to satisfy their unlimited wants

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

Macroeconomics

A

The study of the overall aspects and workings of an economy

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

Microeconomics

A

The study of the individual units that make up an economy

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

Incentives

A

Factors that motivate a person to act or exert effort

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

five foundations of economics

A

Incentives, trade-offs, opportunity cost, marginal thinking, trade creates value

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

Types of incentives

A

Positive, negative, direct, indirect

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

Unintended Consequence

A

Unplanned result of an incentive

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

Trade-off

A

Choosing between two options. China shut down factories for cleaner air

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

Opportunity Cost

A

The highest-valued alternative that must be sacrificed in order to get something else. Driven by trade-offs

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

Economic Thinking

A

Requires a purposeful evaluation of the available opportunities to make the best decision possible

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

Marginal Thinking

A

Requires decision-makers to evaluate whether the benefit of one more unit of something is greater than its cost

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

Markets

A

Bring buyers and sellers together to exchange goods and services

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

Trade

A

The voluntary exchange of goods and services between two or more parties

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

Comparative Advantage

A

Refers to the situation where an individual, business, or country can produce at a lower opportunity cost than a competitor can

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

GDP

A

The market value of all final goods and services produced within a country during a specific period

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

Three uses of GDP

A

Measuring living standards, measuring economic growth, determining whether an economy is experiencing recession or expansion

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

Per Capita GDP

A

GDP per person used to measure living standards

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

Market Value Equation

A

Price x quantity

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

Inflation

A

The growth in the overall level of prices in an economy

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

Real GDP

A

GDP adjusted for changes in prices

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

Economic Growth

A

Measured as the percentage change in real per capita GDP

Starts with GDP but adjusts for inflation and population growth

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

Recession

A

A short-term economic downturn

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

Great Recession

A

US recession lasting from December 2007 to June 2009

25
Q

Business Cycle

A

Short-term fluctuation in economic activity

Peaks and troughs

Full cycles run from peak to trough to peak

Recovery lasts from the trough to the time you recover the GDP you lost; not necessarily all the way to the peak

26
Q

Economic Expansion

A

Phase of the business cycle during which the economy is growing faster than usual

From trough to peak

27
Q

Economic Contraction

A

A phase of the business cycle during which the economy is growing more slowly than usual

From peak to trough

28
Q

Service

A

An output that provides benefits without the production of a tangible product

A broad term that encompasses both low and high level jobs

Majority of the US GDP is service output

29
Q

Intermediate Good

A

A good that firms repackage or bundle with other goods for sale at a later stage

30
Q

Final Good

A

A good sold to final users. The completed good

31
Q

GNP

A

The output produced by workers and resources owned by the residents of that nation \

*GDP only includes goods and services produced domestically

32
Q

GDP Equation

A

GDP = C + I + G + NX

33
Q

Consumption

A

The purchase of final goods and services by households, excluding new houses

34
Q

Investment

A

Private spending on tools, plan, and equipment used to produce future output

Also includes all purchases by businesses that add to their inventories

35
Q

Government Spending

A

Includes spending by all levels of government on final goods and services

Does not include transfer payments such as welfare or unemployment insurance

36
Q

Net Exports

A

Exports - imports

37
Q

Nominal GDP

A

Measured in current prices, not adjusted for inflation

38
Q

Price Level

A

Index of the average prices of goods and services throughout the economy

39
Q

GDP Deflator

A

Measure of the price level that includes prices of the final goods and services included in GDP

40
Q

Real GDP Equation

A

Nominal GDP / price level x 100

41
Q

Percent Change Equation

A

(New value - old value) / old value x100

42
Q

Unemployment

A

Occurs when a worker who is not currently employed is searching for a job without success

43
Q

Unemployment Rate (u)

A

The percentage of the labor force that is unemployed

44
Q

Three Types of Unemployment

A

Structural, frictional, cyclical

45
Q

Structural Unemployment

A

When the structure of the economy changes

Consumer demands shift, new technology, geographical changes

46
Q

Creative Destruction

A

Occurs when the introduction of new products and technologies leads to the end of other industries and jobs

47
Q

Frictional Unemployment

A

Unemployment caused by delays in matching available jobs with workers

“Regular” unemployment

Time costs are present in the process of trying to find a good job or good worker

48
Q

Unemployment Insurance

A

A government program that reduces the hardship of joblessness by guaranteeing that employed workers receive a percentage of their former income while unemployed

49
Q

Cyclical Unemployment

A

Unemployment caused by recession

No known timeframe

Driven by the business cycle

50
Q

Natural Rate of Unemployment (u*)

A

The typical rate of unemployment that occurs when the economy is growing normally (what the unemployment should be)

51
Q

Full Employment Output (y*)

A

The output level produced in an economy when the unemployment rate is equal to its natural rate

Y=y* if u=u*

52
Q

Unemployment Rate Equation

A

U= number employed / labor force x 100

53
Q

Labor Force

A

Includes people who are already employed or actively seeking work.

54
Q

NOT in the Labor Force

A 
Jobless, not looked for work in last 4 weeks
Retired
Students
Institutionalized
Stay-at-home parent
55
Q

Relevant Population

A

Non-institutionalized
Civilian
Over 16

56
Q

Discouraged Workers

A

Those who are not working, have looked for a job in the last 12 months and are willing to work, but have not sought employment in the past 4 weeks

57
Q

Underemployed Workers

A

Those who have part-time jobs but would prefer to work full-time

58
Q

Labor Force Participation Rate

A

The percentage of the population that is in the labor force

59
Q

Labor Force Participation Rate Equation

A

Labor force / population x 100

Macro Econ (1 decks)

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