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
Macro First Partial
First Partial Exam Flashcards
| Question | Answer |
|---|---|
| What is the Etymological definition of economics? | Oikos; home, Nomos; management, Management of home. |
| What is the definition of Microeconomics? | Studies how producers and consumers determine the price and quantities at which inputs and outputs are exchanged. |
| What is the definition of Macroeconomics? | Studies the economy as a whole and seeks to determine how strategies like fiscal, monetary, and commercial policies are used to determine things like inflation, national income, output, unemployment, economic growth etc. |
| What to produce? | That for which there is demand. |
| When to Produce? | When the most important input is abundant |
| How to produce? | Least costly input combination while maintaining same quality. |
| Whom to Produce for? | For those with monetary votes. |
| Where to Produce? | Closest to your input resources, wherever its cheapest. |
| How much to produce? | Almost enough to satisfy demand but not quite. |
| Full Employment | when 5% or less of the labor force is unemployed |
| Economic Security | every member in society should have the following basic needs satisfied: food, clothing, shelter, water and sanitation, education, health care, (internet optional) |
| Economic Stability | avoid unexpected ebbs and flows in the economy |
| Economic Justice | every member in society should have equal opportunities for success regardless of: gender, ethnicity, religion, political persuasion, disability, sexual orientation, height, weight etc. |
| Economic Progress (prosperity) | economic growth plus economic development |
| Economic Growth | quantitative- pursuit of more |
| Economic development | qualitative- pursuit of better |
| Theory of Demand | states ceteris paribus, that a rise in P conveys a decrease in Qd, and vice versa |
| Theory of Supply | states ceteris paribus, that a rise in P conveys an increase in Qs, and vice versa |
| Socialism | economy with collective ownership of means of production, and a large role of the government running the economy with widespread public ownership of key industries. |
| Capitalism (Market Economy) | economy where means of production, distribution and exchange are privately owned and operated for private profit |
| Communism | economy where means of production, distribution, and supply are owned by the proletariat, with wealth distributed based on ones needs. Get based on your needs and give based on your ability. |
| Barter | exchanging goods without the use of money |
| Scarcity | a commodity is scarce if it has a p > 0 |
| Land (T) | natural resources used in production process |
| Labor (L) | all human participation in the prod. Process |
| Capital (K) | Financial- cash, bonds, investments, Physical capital- assets |
| Goods | produced, tangible, and of objective quality |
| Services | performed, intangible, of subjective quality |
| Opportunity Cost Principle (Alternative) | the benefit given up by using a resource for a certain purpose, rather than using it for its alternative use |
| Complementary | describes commodities that are consumed together, ex. Peanut butter and jelly |
| Complimentary | a commodity that is given for free with the purchase of another commodity, ex. Free peanuts with the purchase of an airline ticket |
| The Production possibility boundary (curve, frontier, transformation) | shows all possible combinations of commodities that can be produced in an economy, given the available resources, their use efficiency, and the existing state of technology |
| Political System | rules and regulations enacted by governments to pursue social peace and public order |
| Economic System | rules and regs. Enacted by govs. To pursue economic prosperity and higher standards of living |
| Economic Policies | steps and actions undertaken by governments to achieve economic objectives |
| Gerontocracy | old men |
| Paedocracy | young people |
| aristocracy | small privileged, hereditary class, from leading families bearing titles of nobility |
| Theocracy | priests or men claiming to know the will of God |
| Autocracy | single absolute ruler (aka dictatorship) |
| democracy | by the people, usually through elected representatives |
| Bureaucracy | by officials and their cumbersome regulations |
| Technocracy | by technical experts, administrators with university degrees |
| oligarchy | few influential families |
| Plutocracy | the rich |
| Market | any place that brings together buyers and sellers to exchange commodities |
| Division of Labor (labor specialization) | prevents “jack of all trades”, through specialization, people become ignorant of many trades so they go into markets searching for experts |
| Resource allocation | how to allocate land, labor, and capital, to all competitive ends |
| Elimination of Barter | the use of money will eliminate barter because there is no need for a “coincidence of wants”, money can buy anything. |
| Market Sector (M) (economic) | Pricing of commodities based on covering costs of production |
| Non Market Sector (NM) (economic) | price not related to costs |
| Private Sector (PR) (legal) | owned by members of household or business sector |
| Public Sector (PB) (legal) | owned by government |
| Agents [Sectors] of the economy | (Aggregate expenditure= C + I + G + NX) |
| Agent: Households (Consumers) (C) | 1. owners of factors of production (land, labor, capital) 2. decision making processes are logical and consistent 3. main reason for actions is satisfaction |
| Agent: Firms or Businesses (Producers) (I)- investment is the consumption of businesses | 1.decisions are rational and logical 2. purchasers of factors of production 3. main reason for actions is profitability |
| Agent: Government (G) | 1. decision making processes are not logical or consistent 2. main reason for actions is 4 P’s: Promotion, Power, Prestige, Personal aggrandizement |
| Agent: Foreign Sector (NX= X-M) | 1.Main reason for actions is National interest |
| Characteristics of Capitalism: Private Property | members of the household and of business sectors, not the government, own most of the productive resources. |
| Characteristics of Capitalism: Self- Interest | is the motivating force of all economic units as they express their free choices. Each economic unit tries to do what is best for itself |
| Characteristics of Capitalism: Freedom of Enterprise | ensures that entrepreneurs and businesses are free to get and use economic resources to produce and sell their choice of goods and services in whatever markets they want |
| Virtues of Capitalism: Consumer Sovereignty | Consumers exercise command by determining, through monetary votes, the types and quantities of commodities produced. (its your money, spend it how you want to spend it) |
| Virtues of Capitalism: Market Restraints on Output Decisions | the buying decisions of consumers determine what is profitable to produce and what isn’t, therefore, producers are not free to produce |
| Virtues of Capitalism: Guiding Function of Prices | changes in prices indicate changes in consumers tastes, preferences, and necessities, thus allowing changes in production patterns |
| Vices of Capitalism: Promotes Elitism | View that some are elite and other are nor, in-groups and out-groups |
| Vices of Capitalism: Competition | competition kills businesses and livelihoods because of “survival of the fittest” |
| Vices of Capitalism: Promotes economic inequality | capitalist economies increase the gap between the income of the rich and the income of the poor, unequal because society perceives the world as divided between “winners” and “losers” |
Created by:
583583143
Popular Business sets