Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
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 Testing Out
Test: 8/3
| Question | Answer |
|---|---|
| Economic needs | A good that is needed for basic survival |
| Economic wants | A good for leisure, and is not essential for survival |
| Scarcity | A natural phenomenon where there is a gap between resources and people's needs, such as a finite amount of lithium |
| Shortage | This is a gap between the supply of a product and the demand of a product where the demand is greater than the supply |
| Opportunity cost | This is the loss of potential gain from one alternative when another alternative is chosen |
| Entrepreneur | This is one who organizes and operates a business or businesses, taking financial risks to do so |
| How an efficient business operates | It maximizes output while minimizing the amount of time, labor, money, and materials spent |
| On a Production Possibility Frontier or Production Possibility Curve, what points are using their full potential? | All points on the line of the graph |
| On a Production Possibility Frontier or Production Possibility Curve, what points are using less than their full potential? | Points under the curve |
| On a Production Possibility Frontier or Production Possibility Curve, what points are not currently possible? | Points above the curve |
| Command economy | This is an economy that is controlled by the government |
| Free market economy | This is an economy based solely on the supply and demand of goods by private companies |
| Mixed economy | This economy has aspects that are both government regulated and aspects that are dictated by private companies |
| Who came up with the idea of the invisible hand in economics? | Adam Smith |
| What is the invisible hand in economics? | It is self-interest in free market economies that works as an unseen force that regulates the economy |
| Laissez faire in economics | This is an economic system that has very little or no government intervention |
| Externalities | This is unintended costs or benefits imposed on a third party as a result of an economic transition |
| The product market | This is the specific economic marketplace where goods and services are sold form a business to a customer |
| The factor market | This is where businesses buy the resources and inputs required to produce a product rather than the final product itself |
| Firms | This is any entity that makes goods or services to sell |
| The law of demand | (if all other factors remains constant) as the price of a good increases, the quantity demanded decreases ( & vice versa) |
| The law of supply | (if all other factors remains constant) an increase in the price of a good leads to an increase in the quantity of supplies that producers are willing to produce ( & vice versa) |
| Income effect | This is the change in demand for a product as a result of a shift in a customer's purchasing power, this could be getting fired and having less money to spend |
| Substitution effect | This is the tendency for consumers to replace a more expensive product with a cheaper alternative if the price rises, this could be buying ground turkey rather than ground beef if the price goes from $6 to $9 |
| Complementary good | These are products that are consumed together meaning that demand for one increases demand for the other, this could be printers and ink |
| Elasticity | This measures the responsiveness in supply or demand based on factors like price, income, etc. |
| Elastic goods | This type of good has a demand that changes significantly when the price changes |
| Inelastic goods | This type of good has a demand that remains constant regardless of price change |
| Inelastic demand graph | A graph with a vertical straight line |
| Elastic demand graph | A graph with a horizontal curved line |
| Unit elastic graph | A graph with a diagonal straight line (y=x) |
| Demand curve | This represents consumers |
| Goal of a firm | This is to maximize the wealth of its shareholders or owners |
| Supply curve | This represents the relationship between the price of a good and the quantity that producers are willing to sell |
| Market equilibrium | The point where supply and demand lines intersect |
| Formula for TC (total cost) | TFC (total fixed cost) + TVC (total variable cost) |
| Formula for marginal cost | Change in TC (total cost)/ change in output (aka quantity) |
| Formula for total revenue | price x quantity |
| Formula for profit | Total revenue - total cost |
| Excess supply | If the quantity supplied is more than is demand |
| Excess demand/shortage | If the quantity demanded is more than is supplied |
| Equilibrium quantity | The quantity needed to produce at market equilibrium |
| Monopoly | Market structure that has a single producer dominating over an industry. This could be buying out all of the suppliers of chocolate to be the only one |
| Oligopoly | Market structure where a few firms dominate over an industry resulting in shared industry influence and competitive pressures. An example of this is how Apple, Google, and Samsung control nearly all of the phone market |
| Perfect Competition | Theoretical market structure where no single firm can influence the market price and there are no barriers to entry or exit. An example of this would be farmers growing an equal amount of crops and selling them all at the same price |
| Monopolistic Competition | Market structure where companies compete against each other by offering products that are only slightly different, therefore no single company dominates. This could be how Burger King, Wendy's (two burgers!?!), and McDonalds are all in competition |
| Fiat money | Physical money backed by a government, like USD |
| The Federal Reserve | The nation's central banking system |
| Defaulting | The failure to pay back a loan |
| Delinquency | The failure to back back a loan over 30-270 days |
| Interest | The price paid for the use of borrowed money |
| Principal | The name for the amount of money borrowed in a loan or investment |
| Investment | The act of redirecting resources from being consumed today so that it may create benefits in the future |
| Diversification | Risk management strategy where money is spread across different investments so that if one fails it is less detrimental overall |
| Who can give bonds? | The government, corporations, and municipalities |
| Bond | A loan that was made as a promise to repay any borrowed money with interest for not paying in an adequate amount of time |
| Stock split | Corporate action where a company increases its number of shares while lowering the price per share proportionally. People like this as it is a sign the company is doing well |
| Return | A way to measure the amount of profit of loss in regards to an investment relative to its cost |
| Compound interest | This is the interest you earn on interest, growing the money exponentially |
| Three macroeconomic goals of the federal government | Economic growth, full employment, and price stability |
| GDP | The gross domestic product of a country, it is calculated by looking at the consumption, investment, and government spending of a country (and in/exports, but to a lesser degree) |
| Unemployment | The state of someone without a job who is looking for one. The government measures it to see economic health, to guide policy decisions, and to distribute funds |
| Full employment | An economic state where nearly everyone who is able and willing to work has a job. This is pursued because it means that nearly all needs are being met for a country while allowing room for flexibility. |
| Underemployment | A measure of people in an economy who are unwilling working low-skill or low-paying jobs. The government measures this so they can find economic weaknesses and to guide policy |
| Expanding economy based on GDP | This means that the total monetary value of goods and services has increased driven by consumer spending, government outlays, etc. |
| Contracting economy based on GDP | This means that economic activity is declining |
| Progressive tax | This is a tax system where the tax rate goes up as a person's income increases (ex. US federal income tax) |
| Regressive tax | This is a tax system where a larger percentage of tax is taken from low-income owners than from high-income owners (ex. user fees) |
| Flat tax | This is a tax system where a uniform rate is applied to all taxable income (ex. sales tax) |
| Supply side economics | This focuses on lowering production barriers to have more output |
| Demand side economics | This focuses on boosting consumer spending to have more growth |
| Solution to Inflation | The federal reserve will raise the required reserve ratio or raise the discount rate |
| Solution to too much spending by civilians | The federal reserve will raise the the discount rate |
| Solution to banks loaning out too much money | The federal reserve will use contradictory fiscal policy which has a higher interest rate |
| Solution to a lack of consumer spending | The federal reserve will use expansionary money policy measures like lowering interest rates and lowering the reserve ratio |
| Trade deficit | An economic measure that occurs when a country imports more goods than it exports, resulting in a negative balance of trade |
| Trade surplus | An economic measure that occurs when a country exports more goods than it imports, resulting in a positive balance of trade |
| European Union | This operates a single market, allowing for free trade, having a common currency, and having unified rules and regulations for all countries involved |
| NAFTA | This was the trading zone between the US, Canada, and Mexico that eliminated tariffs and was a free trade zone to increase regional trade volume (no longer exists) |
| OPEC | This is the international cartel of all major oil-exporting nations, they set production quotas and influence global gas and oil prices by raising prices or increasing supply |
| Absolute advantages | This is to make a product with fewer resources |
| Comparative advantages | This is to make a product with a lower opportunity cost |
| Tariffs | A tax on imports that is imposed by the government |
| Quota | A hard limit on the amount of a product that can enter a country |
Created by:
SadUrn