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SSTU > MacroEconomics > Flashcards

MacroEconomics Flashcards

1
Q

is a social science concerned with the production, distribution and consumption of goods and services

A

Economics

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2
Q

deals with question that whether economics falls into the category of science or arts.

A

Nature of Economics

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2
Q

Deals with systematic studies that signify the cause and effect relationship

A

Economics as Science

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3
Q

It is said that knowledge is science, action is art

A

Economic as Art

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4
Q

used to solve various economic problems in society

A

Economic theory

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5
Q

4 factor of economics

A

labor, land,capital and entrepreneurship.

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6
Q

shows the flow of money goods and services in an economy

A

The circular flow model

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7
Q

presents all the individuals as families that make up the economy

A

household

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8
Q

all the businesses that produce goods and serviced in the economy

A

firm

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9
Q

government and all the public institutions involved in the economy

A

government

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10
Q

all the actors outside the domestic economy

A

foreign sector

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11
Q

financial institutions

A

financial sector

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12
Q

Two sector

A

household and firms

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13
Q

three sector

A

household, firms and government

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14
Q

Four sector

A

household, firms, goverment and foe

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15
Q

shows the continuous flow of goods and payments between firms and household.

A

Circular flow model of output and income

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16
Q

top half of Circular flow model of output and income

A

Factor Market

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17
Q

bottom half of Circular flow model of output and income

A

Product Market

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18
Q

demonstrate how money moves through society

A

circular flow income model

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19
Q

injection-introduction of income into the flow

A

in flows

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20
Q

leakages withdrawal of income from the flow

A

outflow

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21
Q

refers how an increase in one economic activity can cause an increase throughout many other related economic activities

A

Multiplier effect

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22
Q

Types of multiplier

A

keynesian multiplier, fiscal multiplier, employment multiplier, investment multiplier,trade multiplier, money multiplier

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23
Q

-also knows as income or expenditure multiplier
-assesses how changes in spending by household, businesses or the government ripple through the economy.
↑government spending- ↑economy

A

keynesian multiplier

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24
Q

states that output (Q) is a function (f) of: (is determined by) the factor
inputs, land (L), labour (La), and capital (K), i.e
-Q = F {(L)(LA)(K)}

A

PRODUCTION FUNCTION

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25
Q

focus exclusively on the impact of changes in government fiscal policy

A

fiscal multiplier

26
Q

shows how creating or losing a certain number of jobs in one industry or sector can lead to the creation or loss of additional jobs in other related industries or sector.

A

employment multiplier

27
Q

refers to the impact that changes in a countrys exports and imports have on its economy

A

trade multiplier

28
Q

shows how an initial deposit into the banking system can lead to a larger increase in the money supply as banks create new loans and deposit

A

Money Multiplier

29
Q

proportion of a raise that is spent on the consumption of goods and services as opposed to being saved

A

Marginal prosperity to consume

30
Q

all factors are held constant

A

ceteris paribus

31
Q

When the price increases, the quantity demanded decreases. When the price decreases, the quantity demanded increases, ceteris peribus.

A

Law of demand

32
Q

consumers consumes more unit of good per unit of time,his total unity increases, recahes its maximum point, and begin to decrease

A

Law of Diminishing Marginal Utility

33
Q

a table that shows the quantity demanded of a good or service at
different price levels.

A

demand schedule

34
Q

is a graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time.

A

demand curve

35
Q

less demand

A

contraction in demand

36
Q

(more demand

A

expansion in demand

37
Q

describes a shift in consumer desire to purchase a particular good or service,
irrespective of a variation in its price

A

change in demand

38
Q

economic principle referring to a consumer’s desire to buy things.

A

demand

39
Q

refers to how sensitive demand for a good is compared to
changes in other economic factors, such as price or income.

A

elasticity of demand

40
Q

the price of a product increases, the quantity of rpoduct that suppliers offer will increase, and vice versa ceterus parabus

A

Law of supply

40
Q

defined as one where a change in price does not significantly
impact demand for that product

A

Inelasticity

41
Q

is a graphical representation of the quantity of a product that a supplier is willing to offer
at any given price.

A

supply curve

42
Q

also known as total output, is the total supply of goods and services produced within an
economy at a given overall price in a given period.

A

aggregate supply

42
Q

is a chart that shows how much product a supplier will have to produce
to meet consumer demand at a specified price based on the supply curve.

A

supply schedule

43
Q

Determinants of Aggregate Supply

A

wages, energy prices, technology, capital stock

43
Q

refers to a shift, either to the left or right, in the entire price-quantity relationship that
defines a supply curve.

A

change in supply

43
Q

an economic measurement that calculates how closely the price of a product or
service is related to the quantity supplied. In other words, it shows how a change in price will affect suppliers’
willingness to produce the good or service.

A

price elasticity of supply

44
Q

where supply is infinite at any one price

A

Perfectly elastic

45
Q

where only one quantity can be supplied.

A

Perfectly inelastic

46
Q

which graphically is shown as a linear supply curve coming from the origin.

A

Unit elasticity

47
Q

is a bookkeeping system that a government uses to measure the level of the country’s economic activity in a given time period

A

national income accounting

48
Q

is a measure of a nation’s economic activity by measuring the value of all
the finished goods and services produced by a nation’s economy in one year by its nationals.

A

Gross National Product

49
Q

total value of all goods and services produced and services produced within a country’s borders during a specific time period.

A

Gross domestic product

50
Q

measured in current market prices without adjusting for inflation or deflation

A

nominal gdp

51
Q

adjust nominal gdp for changes in the price level

A

real gdp

52
Q

Measures the income or earnings received by the country’s factors of production (

A

INCOME APPROACH

53
Q

Measures the amount spent or paid (expended) on all goods and services during the year at market value
or prices.

A

EXPENDITURE APPROACH

54
Q

a is a measurement of the GDP per person in a country’s population

A

GDP per capita

55
Q

compares the year-over-year (or quarterly) change in a country’s
economic output to measure how fast an economy is growing.

A

GDP Growth Rate

56
Q

also known as the spending approach, calculates spending by the different
groups that participate in the economy.

A

EXPENDITURE APPROACH

57
Q

estimates the total value of economic
output and deducts the cost of intermediate goods that are consumed in the process (like those of materials and
services)

A

production approach

58
Q

calculates the income earned by all the factors of production in an economy,

A

INCOME APPROACH

59
Q

It is the sum of all income earned by
citizens or nationals of a country

A

Gross national income

SSTU (7 decks)

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