Busy. Please wait.

show password
Forgot Password?

Don't have an account?  Sign up 

Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
We do not share your email address with others. It is only used to allow you to reset your password. For details read our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Didn't know it?
click below
Knew it?
click below
Don't know (0)
Remaining cards (0)
Know (0)
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


Definitions of the newest Mankiw (Special edition with financial crisis)Ch.21-22

Budget constraint the limit on the consumption bundles that a consumer can afford
Indifference curve a curve that shows consumption bundles that give the consumer that same level of satisfaction
Marginal rate of substitution the rate at which a consumer is willing to trade one good for another
Perfect substitution two goods with straight-line indifference curves
Perfect complements two goods with right-angle indifference curves
Normal good a good for which, other things equal, an increase in income leads to an increase in demand
Inferior good a good for which, other things equal, an increase in income leads to a decrease in demand
Income effect the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve
Substitution effect the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution
Giffen good a good for which an increase in the price raises the quantity demanded
Moral hazard the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behaviour
Agent a person who is performing an act for another person, called the principal
Principal a person for whom an other person, called the agent, is performing some act
Adverse selection the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party
Signalling an action taken by an informed party to reveal private information to an uninformed party
Screening an action taken by an uninformed party to induce an informed party to reveal information
Condorcet paradox the failure of majority rule to produce transitive preferences for society
Arrow's impossibility theorem a mathematical result showing that, under certain assumed conditions, there is no scheme for aggregating individual preferences into a valid set of social preferences
Median voter theorem a mathematical result showing that if voters are choosing a point along a line and each voter wants the point closest to his most preferred point, then majority rule will pick the most preferred point of the median voter
Created by: Medardus



Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!

"Know" box contains:
Time elapsed:
restart all cards