Help
Options
Question
economics
click to flip
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't know
Question
scarcity
Remaining cards (89)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Econ 201 Test 1
| Question | Answer |
|---|---|
| economics | the study of how people deal with scarcity |
| scarcity | the situation in which the quantity of resources is insufficient to meet all wants |
| choice | a selection among alternative goods, services, or actions |
| economic interactions | exchanges of goods and services between people |
| market | an arrangement by which economic exchanges between people take place |
| opportunity cost | the value of the next-best forgone alternative that was not chosen because something else was chosen |
| gains from trade | gains from trade: improvements in income, production, or satisfaction owing to the exchange of goods or services |
| specialization | people concentrating their production efforts on what they are good at/ a concentration of production effort on a single specific task |
| division of labor | occurs when some workers specialize in one task while others specialize in another task/ the division of production into various parts in which different groups of workers specialize |
| comparative advantage | a situation in which a person or group can produce one good at a lower opportunity cost than another person or group |
| international trade | the exchange of goods and services between people or firms in different nations |
| production possibilities | alternative combinations of production of various goods that are possible, given the economy’s resources |
| increasing opportunity cost | a situation in which producing more of one good requires giving up an increasing amount of production of another good |
| production possibilities curve | a curve showing the maximum combinations of production of two goods that are possible, given the economy’s resources |
| market economy | an economy characterized by freely determined prices and the free exchange of goods and services in markets |
| command economy | an economy in which the government determines process and production; also called a centrally planned economy |
| freely determined prices | prices that are determined by the individuals and firms interacting in markets |
| property rights | rights over the use, sale, and proceeds from a good or resource / gives individuals the legal authority to keep or sell a property, land or resource |
| incentive | a device that motivates people to take action, usually so as to increase economic efficiency - ppl would have no incentive to invent or specialize in something |
| market failure | any situation in which the market does not lead to an efficient economic outcome and in which there is a potential role for government/ when market does not answer what how and for whom questions |
| government failure | the situation where the government fails to improve on the market or even makes things worse |
| relative price | the price of a particular good compared to the price of other things |
| economic variable | any economic measure that can vary over a range of values |
| controlled experiments | empirical tests of theories in a controlled setting in which particular effects can be isolated |
| experimental economics | a branch of economics that uses laboratory experiments to analyze economic behavior |
| economic model | an explanation of how the economy or a part of the economy works |
| microeconomics | the branch of economics that examines individual decision-making at firms and households and the way they interact in specific industries and markets |
| macroeconomics | the branch of economics that examines the workings and problems of the economy as a whole—GDP growth and unemployment |
| gross domestic product (GDP) | a measure of the value of all the goods and services newly produced in an economy during a specified period of time |
| positively related | a situation in which an increase in one variable is associated with an increase in another variable; also called directly related |
| negatively related | a situation in which an increase in one variable is associated with a decrease in another variable; also called inversely related |
| capitalism | an economic system based on a market economy in which capital is individually owned, and production and employment decisions are decentralized |
| socialism | an economic system in which the government owns and controls all the capital and makes decisions about prices and quantities as part of a central plan |
| mixed economy | a market economy in which the government plays a very large role |
| positive economics | economic analysis that explains what happens in the economy and why, without making recommendations about economic policy |
| normative economics | economic analysis that makes recommendations about economic policy |
| Cartesian coordinate system | a graphing system in which ordered pairs of numbers are represented on a plane by the distances from a point to two perpendicular lines, called axes |
| time series graph | a graph that plots a varable over time, usually with time on the horizontal axis |
| dual scale | a graph that uses time on the horizontal axis and different scales on the left and right vertical axes to compare the movements of two variables over time |
| scatter plot | a graph in which points in a Cartesian coordinate system represent the values of two variables |
| slope | a characteristic of a curve that is defined as the change in the variable on the vertical axis divided by the change in the variable on the horizontal axis |
| positive slope | a slope of a curve that is greater than zero, representing a positive or direct relationship between two variables |
| negative slope | a slope of a curve that is less than zero, representing a negative or inverse relationship between two variables |
| linear | a situation in which a curve is straight, with a constant slope |
| movement along the curve | a situation in which a change in the variable on one axis causes a change in the variable on the other axis, but the position of the curve is maintained |
| shift of the curve | a change in the position of a curve, usually caused by a change in a variable not represented on either axis |
| demand | a relationship between price and quantity demanded price |
| quantity demanded | the quantity of a good that people want to buy at a given price during a specific time period |
| demand schedule | a tabular presentation of demand showing the price and quantity demanded for a particular good, all else being equal |
| law of demand | the tendency for the quantity demanded of a good in a market to decline as its price rises |
| demand curve | a graph of demand showing the downward-sloping relationship between price and quantity demanded |
| normal good | a good for which demand increases when income rises and decreases when income falls |
| inferior good | a good for which demand decreases when income rises and increases when income falls |
| substitute | a good that has many of the same characteristics as, and can be used in place of another good |
| complement | a good that is usually consumed or used together with another good |
| supply | a relationship between price and quantity supplied |
| quantity supplied | the quantity of a good that firms are willing to sell at a given price |
| supply schedule | a tabular presentation of supply showing the price and quantity supplied of a particular good, all else being equal |
| law of supply | the tendency for the quantity supplied of a good in a market to increase as its price rises |
| supply curve | a graph of supply showing the upward-sloping relationship between price and quantity supplied |
| shortage (excess demand) | a situation in which quantity demanded is greater than quantity supplied |
| surplus (excess supply) | a situation in which quantity supplied is greater than quantity demanded |
| equilibrium price | the price at which quantity supplied equals quantity demanded |
| equilibrium quantity | the quantity traded at the equilibrium price |
| market equilibrium | the situation in which the price is equal to the equilibrium price and the quantity traded equals the equilibrium quantity |
| international trade | the exchange of goods and services between people or firms in different nations |
| tariff | a tax on imports |
| quota | a governmental limit on the quantity of a good that may be imported or sold |
| commerce clause | the clause in the U.S. Constitution that prohibits restraint of trade between states |
| comparative advantage | a situation in which a person or country can produce one good at a lower opportunity cost than another person or country |
| absolute advantage | a situation in which a person or country is more efficient at producing a good in comparison with another person or country |
| relative price | the price of a particular good compared with the price of other things |
| capital abundant | a higher level of capital per worker in one country relative to another |
| labor abundant | a lower level of capital per worker in one country relative to another |
| capital intensive | production that uses a relatively high level of capital per worker |
| labor intensive | production that uses a relatively low level of capital per worker |
| revenue tariffs | an import tax whose main purpose is to provide revenue to the government |
| Smoot-Hawley tariff | a set of tariffs imposed in 1930 that raised the average tariff level to 59 percent by 1932 |
| trade war | a conflict among nations over trade policies caused by imposition of protectionist policies on the part of one country and subsequent retaliatory actions by other countries |
| World Trade Organization (WTO) | an international organization that can mediate trade disputes |
| antidumping duty | a tariff imposed on a country as a penalty for dumping goods |
| nontariff barriers | any government action other than a tariff that reduces imports, such as a quota or a standard |
| infant industry argument | the view that a new industry may be helped by protectionist policies |
| multilateral negotiations | simultaneous tariff reductions on the part of many countries |
| Uruguay Round | a most recent round of multilateral negotiations, opened in 1986 and completed in 1993 |
| Doha Development Round | the latest round of multilateral negotiations, opened in November 2001 in Doha, Qatar |
| trade diversion | the shifting of trade away from the low-cost producer toward a higher-cost producer because of a reduction in trade barriers with the country of the higher-cost producer |
| trade creation | the increase in trade due to a decrease in trade barriers |
| free trade areas (FTA) | an area that has no trade barriers between the countries in the area |
| customs unions | a free trade area with a common external tariff |
Created by:
jenn14