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Economics-Mankiw-P9
Definitions of the newest Mankiw (Special edition with financial crisis)Ch.25-28
| Question | Answer |
|---|---|
| Productivity | the quantity of goods and services produced from each hour of a worker's time |
| Physical capital | The stock of equipment and structures that are used to produce goods and services |
| Human capital | the knowledge and skills that workers acquire through education, training and experience |
| Natural resources | the inputs into the production of goods and services that are provided by nature, such as land, rivers and mineral deposits |
| Technological knowledge | society's understanding of the best ways to produce goods and services |
| Diminishing resources | the prosperity whereby the benefit from an extra unit of an input declines as the quantity of the good increases |
| Catch-up effect | the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich |
| Financial system | the group of institutions in the economy that help to match one person's saving with another person's investment |
| Financial markets | financial institutions through which savers can directly provide funds to borrowers |
| Bond | A certificate of indebtedness |
| Stock (or share or equity) | a claim to partial ownership in a firm |
| Financial intermediaries | financial institutions through witch saver can indirectly provide funds to borrowers |
| investment fund | an institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds |
| National saving (saving) | the total income in the economy that remains after paying for consumption and government purchases |
| Private saving | the income that households have left after paying for taxes and consumption |
| Public saving | the revenue that the government has left after paying for its spending |
| Budget surplus | An excess of tax revenue from government spending |
| Budget deficit | s shortfall of tax revenue from government spending |
| Crowding out | a decrease in investment that results from government borrowing |
| Finance | the field of economics that studies how people make decisions regarding the allocation of resources over time and the handling of risk |
| Present value | the amount of money today that would be needed to produce, using prevailing interest rates, a given future amount of money |
| Future value | the amount of money in the future that an amount of money today will yield, given prevailing interest rates |
| Compounding | the accumulation of a sum of money in, say, a bank account, where the interest earned remains in the account to earn additional interests in the future |
| Risk averse | exhibiting a dislike of uncertainty |
| Diversification | the reduction of a risk achieved by replacing a single risk with a large number of smaller risks |
| Idiosyncratic risk | risk that affects only a single economic actor |
| Aggregate risk | risk that affects all economic actors at once |
| Fundamental analysis | the study of a company's accounting statements and future prospects to determine its value |
| Efficient market hypothesis | the theory that assets prices reflect all the publicly available information about the value of an asset |
| Informationally efficient | reflecting all available information in a rational way |
| Random walks | the path of a variable whose changes are impossible to predict |
| Natural rate of unemployment | the normal rate of unemployment around which the unemployed rate fluctuates |
| Cyclical unemployment | the deviation of unemployment from its natural rate |
| Labour force | the total number of workers, including both the employed and the unemployed |
| Unemployment rate | the percentage of the labour force that is unemployed |
| Labour force participation rate (or economic activity rate) | the percentage of the adult population that is in the labour force |
| Structural unemployment | unemployment that results because the number of jobs available in some labour markets is insufficient to provide a job for everyone who wants one |
| Job search | the process by which workers find appropriate jobs given their tastes and skills |
| Unemployment insurance | a government program that partially protects workers's incomes when they become unemployed |
| Union | a work association that bargains with employers over wages and working conditions |
| Collective bargaining | the process by which unions and firms agree on the terms of employment |
| Strike | The organized withdrawal of labour from a firm by a union |
| Efficiency wages | above-equilibrium wages paid by firms in order to increase worker productivity |
Created by:
Medardus
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