| Terms |
Definitions |
|
What is capital?
|
money
|
|
detrimental
|
causing damaging, being harmful
|
|
Cyclic Unemployment
|
caused by economic condition
|
|
leveling mechanism
|
A cultural obligation compelling prosperous members of a community to give away goods, host public feasts, provide free service, or otherwise demonstrate generosity so that no one permanently accumulates significantly more wealth than anyone else.
|
|
incentive
|
something that encourages people to work harder or to produce more
|
|
Unemployment Rate
|
(Number of people Unemployed)/(Labor Force)
|
|
market
|
meeting place or mechanism allowing buyers and sellers of an economic product to come together; may be local, regional, national, or global.
|
|
Entrepreneurship
|
The vision, skills, and risk-taking needed to create and run businesses
|
|
protectionism
|
the fostering of developing domestic industries by protecting them from foreign competition through duties or quotas imposed on importations
|
|
Balance of Trade
|
comparing exports to imports. Exports-Imports=Balance of Trade
|
|
How
|
is the question that answers HOW should these goods and services be produced
|
|
AFC
|
average fixed cost- total fixed cost divided by the number of units of output
|
|
Economics
|
How people and Societies use limted Resurces to satisfy their unlimted Wants
|
|
Siler Certificates
|
Paper currency backed by silver dollars and bullion placed on reserve with the Treasury.
|
|
the branch of economics that deals with the economy as a whole, including employment, gross domestic product, inflation, economic growth, and the distribution of income
|
MACROECONOMICS
|
|
CONCEPT THAT THERE ARE NOT ENOUGH RESOURCES AVAILA
|
SCARCITY
|
|
keynesian
|
of or pertaining to the economic theories, doctrines, or policies of Keynes or his followers, esp. the policy of maintaining high employment and controlling inflation by varying the interest rates, tax rates, and public expenditure.
|
|
productive
|
producing or tending to produce goods and services having exchange value
|
|
reciprocity
|
The transfer of goods for other goods between two or more individuals or groups.
|
|
market ecomony
|
a system where business owners and customer make decisions about what to make, sell and buy
|
|
Price elasticity of demand
|
Measures how responsive quantity demanded is to a price change
|
|
protectionists
|
those who argue jobs will be lost without trade restrictions are called
|
|
Marginal revenue product
MRP
|
the additional revenue that an additional resource can create for a firm
|
|
Free riding
|
Benefiting from a good without paying for it.
|
|
Productivity
|
a measure of the amount of output produced by a given amount of inputs in a specific period of time
|
|
in-kind benefits
|
goods and services provieded for free or at greatly reduced prices.
|
|
means that people do not have enough income and ti
|
scarcity
|
|
short
|
not possessing at the time of sale commodities or stocks that one sells.
|
|
Oligopoly
|
industry in which there are only a small number of producers and barriers exist to prevent new competition
|
|
division of labor
|
The rules found in all societies dictating how the day-today tasks are assigned to the various members of a society.
|
|
Supply and Demand
|
System where when things are needed (or demanded) prices go up and they are supplied
|
|
Advantages of "strong" Dollar:
|
-U.S. dollar can purchase foreign goods more cheaply-Keeps inflation low-Easy to travel to foreign countries
|
|
Macroeconomics
|
The study of the economy as a whole, including topics such as inflation, unemployment, and economic growth.
|
|
labor productivity
|
the amount of ouput produced per unit of labor input
|
|
a given change in price causes a relatively larger change in quantity demanded
|
elastic demand
|
|
profit
|
the money left over after the costs of producing a good or service have been subtracted from the revenue gained by selling that good or service
|
|
nominal wages
|
wages measured in terms of money and not by their ability to command goods and services
|
|
net profit after taxes
|
the money left after expenses and taxes
|
|
Real or constant dollars
|
dollar amounts or prices that have been adjusted for inflation
|
|
Market demand
|
The demand by all the consumers of a given good or service.
|
|
What are normal goods?
|
a good or service whose consumption increases when income increases and falls when income decreases, price remaining constant.
|
|
equilibrium price
|
the price at which the quantity of a product offered is equal to the quantity of the product in demand.
|
|
Total product (TP) is the
|
maximum output that a given quantity of labor can produce while working with a fixed quantity of capital. All points on the TP curve are technologically efficient. Initially TP increases at an increasing rate and then only increases at a decreasing rate.
|
|
Which of the following was not an issue in the 1960 election?
|
The Cuban Missile Crisis
|
|
Total Product, Marginal Product and Average Product
|
Total product (TP) is the maximum output that a given quantity of labor can produce when working with a given quantity of capital units.• Marginal product (MP) is the increase in total product brought about by hiring one more unit of labor, while holding quantities of all other factors of production constant.• Average product (AP) equals total product of labor divided by the quantity of labor units employed.1. MP intersects AP from above through the maximum point of AP.2. When MP is above AP, AP rises, and when MP is below AP, AP falls.
|
|
THE FACT THAT THE OPPORTUNITY COST OF ADDITIONAL UNITS OF A GOOD GENERALLY INCREASES AS SOCIETY ATTEMPTS TO PRODUCE MORE OF THAT GOOD. THIS ACCOUNTS FOR THE BOWED-OUT SHAPE OF THE PRODUCTION POSSIBILITIES CURVE.
|
LAW OF INCREASING RELATIVE COST
|
|
Why does FED control money supply
|
It controls money supply so that it can change the interest rate in the money market
|
|
What is the definition of the Labor Force?
|
-The sum of employed and unemployed workers in the economy
-People who don't have a job and are not looking for a job are not considered in the labor force.
|
|
Four main factors that shift the demand curve..
|
1. A change in price of related goods such as SUBSTITUTES or COMPLEMENTS2. A change in income3. A change in tastes4. A change in expectations
|
