Vocabulary Flashcards
1
Q
Two systems of logic
A
Inductive and Deductive
2
Q
System of logic based on Syllogism:
A
Deductive
3
Q
System of logic based on empiricism:
A
Inductive
4
Q
Whats true for the part is true for the whole:
A
Fallacy of composition
5
Q
Maximizing inputs (costs) with a static output:
A
Economize
6
Q
Maximizing output with static inputs:
A
Efficiency
7
Q
Economic activity with negative spreading effects:
A
External Diseconomy
8
Q
Economic activity with positive spreading effects:
A
External Economy
9
Q
A value on a horizontal axis
A
Abscissa
10
Q
A value on the vertical axis:
A
Ordinate
11
Q
For a linear function, the slope is:
A
Constant
12
Q
Numbers that assign value:
A
Cardinal
13
Q
Numbers that assign rank:
A
Ordinal
14
Q
Lines that approach but never touch the axis:
A
Asymptote
15
Q
A reverse auction
A
Dutch
16
Q
The sellers agent:
A
Shill
17
Q
An auction with a minimum price:
A
Reserve
18
Q
Let the buyer beware
A
Caveat Emptor
19
Q
Costs that vary with the level of output:
A
Variable Cost
20
Q
Costs that are constant despite the level of output:
A
Fixed cost
21
Q
The point of the TC curve where diminishing returns begin:
A
Inflection point or minimum AC
22
Q
As output increases, AFC:
A
decreases FC/q
23
Q
Tax incidence
A
Tax Burden
24
Q
The school of economic thought that favored free trade:
A
classical or Ricardians
25
The school of economic thought that favored protectionism, opposed free trade:
Mercantilists
26
The school of economic thought that proposed that labor created value:
Classical
27
The school of economic thought that proposed that agriculture is the source of growth:
Physiocracy
28
Who is the founder of physiocracy?
Quesnay
29
The school of economic thought that opposed tariffs and quotas:
Classical
30
The school of economic thought in favor of import tariffs, import quotas, and export subsidies:
Mercantilists
31
Consumers maximize:
Utility
32
Producers maximize:
Profit
33
Demand is the derivative of:
Utility
34
supply is the derivative of:
Costs
35
series of numbers increasing at a decreasing rate (2,4,6,8,10):
Arithmetic
36
Series of numbers increasing at a constant rate (2,4,8,16)
Geometric
37
What are the Classical factors of production:
Land, labor, and capital
38
What are the primary factors of production?
land and labor
39
What is the factor of production that promotes growth?
Entrepreneurship
40
Who is responsible for the entrepreneurship factor of production?
Schumpeter
41
Distribution according to need:
Marxism
42
Distribution according to scarcity:
Meritocracy
43
A single buyer and a single seller is called what respectively?
Monopsony & Monopoly
44
How do you create a shift in PPC?
Innovation, new production methods, etc.
45
Which countries currently trade gold?
Spain and Portugal (Not the US!)
46
Another name for disguised unemployment:
Feather bedding
47
Describe the cost behavior for downward sloping supply curve:
Decreasing cost
48
Which factor of production has a backward bending supply curve?
Labor
49
What is the shape of indifference curves?
Convex to the origin
50
What is the shape of indifference curves for perfect substitutions?
Linear
51
What is the shape of indifference curves for perfect complements?
Right angle
52
What is the shape of indifference curves where addiction is present?
Concave sections
53
Which assumption for indifference curves does the law of substitution explain?
Convex
54
Which assumption for indifference curves is explained by more is preferred to less?
Rationality
55
Which assumption for indifference curves is explained by if A \> B and B \> C, then also A \> C
Transitivity
56
The willingness and ability to enter the market at a specific price is:
Demand
57
Is demand a condition that is necessary or sufficient?
Necessary
58
The willingness and ability to enter the market at the market price is:
Effective demand
59
What happens to MU as Q consumed increases?
Decreases
60
What happens to MU at the satiation point?
MU=0
61
What happens to MU after the satiation point?
MU is negative
62
Reverse income effect is for what kind of good?
Inferior good
63
Who is responsible for inferior goods?
Giffen (Reverse income effect)
64
Reverse substitution effect is for what kind of good?
Conspicuous consumption
65
Who is responsible for conspicuous consumption
Veblen (Reverse Substitution)
66
3 Agriculture Laws
Morrill Act
Hatch Act
Smith-Lever Act
67
Morrill Act
Land Grant Act
68
Hatch Act
Provided more money for farm research
69
Smith-Lever Act
Morrill Act Schools must extend school hours to accommodate farm families.
70
Public Law 480
If you're not a Marxist country, we will provide you with food in exchange for counterpart funds.
Public Law 480 is a food aid and market development program focused on the needs of developing countries and is aimed at establishing a U.S. presence in such markets and supporting their economic growth.
71
Counterpart Funds
Soft currency money, which is money that is only used to pay for consulate services in those countries and the Peace Corps
72
Crop Limitation Programs
Soil Banking and Payment in Kind (PIK)
73
Price Support Programs
Government Purchase and Price Differential
74
Soil Banking
Don't Plant (Shifts Supply Right)
75
Payment in Kind (PIK)
Don't Pick (Shifts Supply Right)
76
Government Purchase
Government buys enough of the supply so that the so that the market supply function crosses the demand function at the parity price (equilibrium price becomes the market price)
77
Price Differential
Fill out form and government pays the difference between what you actually received and what you should have received. Costs consumer less.
78
Government Purchase and Price Differential visual
