Macroeconomics in Context Chapter 1 Flashcards

Terms Definitions
Q:
What is Economics?
A:
The study of the way people organize themselves to sustain life and enhance its quality.
Q:
What are the four essential economic activities?
A:
1. Resource maintenance
2. Production of goods & svcs
3. Distribution of goods & svcs
4. Consumption of goods & svcs
Q:
Resource Maintenance
A: Tending to preserving or improving the natural, produced, human and social resources that form the basis for the preservation and quality of life
Q:
Production
A:
The conversion of resources into usable products
Q:
Distribution
A:
The sharing of products and resources among people
Q:
Consumption
A:
Final use of goods & services
Q:
Microeconomics
A:
The study of the economic activities and interaction of individuals, households, businesses and other groups at the subnational level
Q:
Macroeconomics
A:
The study of how economic activities at all levels create a national and global economic environment
Q:
Macro Economy
A:
An economic system whose boundaries are normally understood to be the boundaries of a nation
Q:
Global Economy
A:
The system of economic rules, norms and interactions by which global economic actors and actions are connected
Q:
Economic Actor (Agent)
A:
An individual, group or organization that is involved in economic activities
Econ 200 Ch.1
Q: Short Run
A:
Short term economic Fluctuations
Econ 200 Ch.1
Q: Long Run
A:
Long term economic trends
Econ 200 Ch.1
Q: Positive Questions
A:
Questions about how things are.
(facts)
Econ 200 Ch.1
Q:Normative Questions
A:
Questions about how things should be. (goals and values)
Econ 200 Ch.1
Q: Well being
A:
The broad goal of promoting the sustenance and flourishing of life
Econ 200 Ch.1
Q: Three macroeconomic goals (of well being)
A:
1. Good living standards
2. Stability and security
3. Sustainability
Econ 200 Ch.1
Q: Living standards growth (6)
A:
Improvements in people's diet, housing, medical, education, working conditions and access to things
Econ 200 Ch.1
Q: GDP
A:
Gross Domestic Product
Econ 200 Ch.1
Q: Economic Growth
A:
Increase in the level of production in a country or region
Econ 200 Ch.1
Q: Economic development
A:
Moving from poverty to plenty through changes in the organization of work
Econ 200 Ch.1
Q: labor productivity
A:
The level of output that can be produced per worker
Econ 200 Ch.1
Q: per capita
A:
per person
Econ 200 Ch.1
Q: GDP per capita
A:
production per person
Econ 200 Ch.1
Q: global production increase from 1960-2003
A:
4.6 times
Econ 200 Ch.1
Q: global production per capita increase from 1960-2003
A:
2.2 times
Econ 200 Ch.1
Q: the three basic economic questions
A:
1. What is produced?
2. How is it produced?
3. For whom is it produced?
Econ 200 Ch.1
Q: Business (trade) cycle
A:
recurrent fluctuations in the level of national production, with alternating periods of recession and boom
Econ 200 Ch.1
Q: Precautionary Principal
A:
The principle that we should err o the cautious side when dealing with natural systems or human health
Econ 200 Ch.1
Q: Classical Economics
A:
School of economics started in the 18th century that focused growth & distribution based on an image of smoothly running markets
Econ 200 Ch.1
Q: Who is Adam Smith and what was his famous book?
A:
Scottish classical economist.
"An Inquiry Into the Nature and Causes of Wealth of Nations"
Econ 200 - Ch. 1
Q: Division of labor
A:
an approach to production in which a process is broken down into smaller tasks with each worker assigned only one or few
Econ 200 - Ch. 1
Q: Specialization
A:
in production, a system of organization in which each worker performs only one type of task
Econ 200 - Ch. 1
Q: laissez-faire economy
A:
an economy with little government regulation
Econ 200 - Ch. 1
Q: Say's Law
A:
the classical belief that "supply creates its own demand"
Econ 200 - Ch. 1
Q: aggregate demand
A:
the total demand for all goods and services in a national economy
Econ 200 - Ch. 1
Q: Keynesian economics
A:
the school of thought that argued for the active use of fiscal policy to keep aggregate demand high and employment rates up
Econ 200 - Ch. 1
Q: fiscal policy
A:
the manipulation of levels of government spending and taxation to raise or lower the level of aggregate demand
Econ 200 - Ch. 1
Q: monetary policy
A:
the use of tools controlled by the government, like banking regulations and currency issuance, to try to affect the levels of money supply, rates and credit
Econ 200 - Ch. 1
Q: monetarist economics
A: the school that focused on the effects of monetary policy, and said governments should aim for steadiness in money supply rather than play an active role
Econ 200 - Ch. 1
Q: OPEC
A:
Organization of Petroleum Exporting Countries
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Term:
Definition:
Definition:

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