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Academic Decathlon (WWII) > Econ Terms > Flashcards

Econ Terms Flashcards

1
Q

spending by households on goods and services, with the exception of the purchase of new housing

A

Consumption

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2
Q

Coins and bills in the hands of the public

A

Currency

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3
Q

conditions that prevent firms from freely entering or exiting a market

A

Barriers to Entry

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4
Q

severe recession

A

Depression

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5
Q

graphical depiction of relationship between level of desired expenditures in an economy and the price level

A

Aggregate demand curve

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6
Q

graphical depiction of relationship between quantity of goods and services firms which to supply and the price level

A

Aggregate supply curve

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7
Q

total output divided by the quantity of labor employed in its production

A

Average labor productivity

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8
Q

sudden rush of depositors seeking to withdraw funds from the banking system

A

Bank run

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9
Q

fluctuations in aggregate economic activity

A

Business cycle

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10
Q

long-lived goods that are themselves produced and are used to produce other goods and services, but are not used up in the production process

A

Capital goods

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11
Q

group of firms that collude in a given market to restrain competition, often making quota arrangements among themselves

A

Cartel

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12
Q

proposition that if private parties can bargain without cost over the allocation of resources, then they can solve the problem of externalities on their own

A

Coase Theorem

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13
Q

ability to produce a good or service at a lower opportunity cost than other producers

A

Comparative advantage

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14
Q

market with many buyers and sellers trading a homogenous good or service in which each buyer and seller is a price taker

A

Competitive market

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15
Q

two goods for which a rise in the price of one leads to a decline in the demand for the other

A

Complements

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16
Q

index constructed by comparing the cost of purchasing a fixed basket of goods at different times

A

Consumer Price Index (CPI)

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17
Q

difference between the amount that a buyer would be willing to pay for a good or service and the price actually paid

A

Consumer surplus

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18
Q

decrease in private investment that occurs as a result of a reduction in government saving or an increase in government borrowing

A

Crowding out

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19
Q

unemployment caused by deviations of output from its potential level

A

Cyclical unemployment

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20
Q

reduction in total surplus that results from a market distortion such as a tax

A

Deadweight loss

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21
Q

graphical representation of the quantity of a good or service demanded as a function of the price

A

Demand curve

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22
Q

table showing the relationship between the price of a good or service and the quantity demanded

A

Demand schedule

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23
Q

property whereby each each additional increase in inputs results in a smaller increase in the quantity produced

A

Diminishing returns to scale

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24
Q

interest rate that the Federal Reserve charges banks when they must borrow reserves from it

A

Discount rate

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25
Q

difference between the revenue realized by a producer and the opportunity cost of production

A

Economic Profit

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26
Q

percentage change in quantity demanded or supplied as a result of a one percent change in price

A

Elasticity

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27
Q

an individual who takes on the risk of attempting to create new products or services, establish new markets, or develop new methods of production

A

Entrepreneur

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28
Q

situation in which the forces in a system are in balance so that the situation is stable and unchanging

A

Equilibrium

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29
Q

ability to prevent buyers from enjoying the benefits of consuming a good or service without paying for it

A

Excludability

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30
Q

period between a trough and a peak in economic activity

A

Expansion

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31
Q

when the action of one person affects the well-being of someone else but where neither party pays nor is paid for these effects

A

Externality

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32
Q

Founded in Great Britain in 1884, Fabians pursued socialism through gradual political reforms, as opposed to the violent struggles witnessed in Russia, China, Vietnam, Korea, and other nations.

A

Fabian Society

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33
Q

rate that banks charge other banks when they lend reserves

A

Federal Funds Rate

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34
Q

goods or services that are purchased by their ultimate user

A

Final Goods

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35
Q

institutions through which individuals with savings can supply these funds to persons or firms that wish to borrow money to purchase consumption goods or invest in physical capital

A

Financial markets

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36
Q

use of taxes and spending to influence aggregate demand and through it the level of overall economic activity

A

Fiscal policy

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37
Q

cost of production that is independent of the quantity produced

A

Fixed cost

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38
Q

when a company invests in an operational entity in a foreign country that the company or individual will manage directly

A

Foreign Direct Investment (FDI)

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39
Q

unemployment that results because it takes time for workers to search for jobs that are best suited to their tastes and skills

A

Frictional unemployment

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40
Q

benefits that both individuals or nations realize from mutually beneficial exchange

A

Gains from trade

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41
Q

spending on goods and services by federal, state, and local governments

A

Government purchases

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42
Q

market value of final goods and services produced in an economy during a specified period of time

A

Gross Domestic Product (GDP)

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43
Q

skills and experience that are acquired through education, training, and on the job experience that increase a worker’s productivity

A

Human capital

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44
Q

case of a market with a small number of sellers, so that sellers have market power

A

Imperfect competition

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45
Q

good for which the quantity demanded falls as buyers’ income increases

A

Inferior good

46
Q

general increase in prices

A

Inflation

47
Q

any type of service that can be exchanged over the internet or via other methods of communications (call centers, software development and sales, accounting, etc.)

A

Internet technology services

48
Q

formal and informal rules that structure human interactions

A

Institutions

49
Q

third party who acts as a link between two others who wish to transact business

A

Intermediary

50
Q

good or service that is used in the process of producing other goods and services

A

Intermediate good

51
Q

organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world

A

International Monetary Fund (IMF)

52
Q

spending on capital equipment, inventories, and structures, including household purchases of new housing

A

Investment

53
Q

model of short-run aggregate economic fluctuations inspired by the analysis of British economist John Maynard Keynes, which attributes short-run deviations in output from potential to variations in the level of aggregate demand or aggregate supply

A

Keynesian Model

54
Q

sum of those individuals who are employed and those who are seeking paid work but haven’t found it

A

Labor force

55
Q

fraction of the working-age population who are in the labor force

A

Labor force participation rate

56
Q

holding other things equal, the quantity demanded is negatively related to the price

A

Law of Demand

57
Q

holding other things equal, the quantity supplied is positively related to the price

A

Law of Supply

58
Q

ease with which a nonmonetary asset may be converted into money

A

Liquidity

59
Q

practice of elected officials trading votes

A

Logrolling

60
Q

additional cost of production associated with a small increase in the quantity produced

A

Marginal cost

61
Q

additional revenue resulting from a small increase in the quantity produced

A

Marginal revenue

62
Q

quantity of currency plus bank reserves

A

Monetary base

63
Q

use of the supply of money in the economy by the Federal Reserve to influence the level of aggregate demand

A

Monetary policy

64
Q

asset that is a medium of exchange, unit of account, and store of value

A

Money

65
Q

ratio of the money supply to the monetary base

A

Money multiplier

66
Q

quantity of money available to the economy

A

Money supply

67
Q

market in which there is free entry/exit, but every producer supplies a differentiated product and faces a downward sloping demand curve

A

Monopolistic competition

68
Q

market in which there is a single producer

A

Monopoly

69
Q

level of unemployment that would exist if the economy were producing at its potential output

A

Natural rate of unemployment

70
Q

difference between the purchases of foreign assets by domestic residents and the purchases of domestic assets by foreign residents

A

Net capital outflow

71
Q

difference between the value of goods and services sold to foreigners and the value of goods and services purchased from foreigners

A

Net exports

72
Q

proposition that in the long run, changes in the quantity of money affect the price level but do not affect any real quantities

A

Neutrality of money

73
Q

production of goods and services valued at current prices

A

Nominal GDP

74
Q

good or service for which demand is positively related to the buyer’s income

A

Normal Good

75
Q

economic analysis used to guide decisions about what should be as opposed to what is the case

A

Normative economics

76
Q

relationship identified by Arthur Okun between the output gap and the level of cyclical unemployment

A

Okun’s Law

77
Q

market in which there are just a few producers

A

Oligopoly

78
Q

tool used by Federal Reserve to adjust the money supply by buying or selling US government bonds in the financial market

A

Open Market Operations

79
Q

cost of any choice is what must be given up by making that choice

A

Opportunity cost

80
Q

difference between actual output and potential output

A

Output gap

81
Q

describes an allocation in which the only way to make any individual/group of individuals better off would require making at least one other person worse off

A

Pareto efficiency

82
Q

literally per head, used to denote an average value for a population

A

Per capita

83
Q

purchase of shares of stock or bonds

A

Portfolio investments

84
Q

use of tools of economic analysis to describe and explain economic phenomena and to make prediction about what will happen under particular circumstances

A

Positive economics

85
Q

quantity of output that would be produce by an economy if all of its resources were being employed at normal rates

A

Potential output

86
Q

when a business sells the same product to different buyers at different prices

A

Price discrimination

87
Q

amount by which demand for a given product changes in response to changes in price; specifically, the percentage change in demand that corresponds to a one percent change in the price

A

Price elasticity of demand

88
Q

difference between the price that producers receive for supplying a good and their marginal cost of producing it

A

Producer surplus

89
Q

graphical depiction of the combinations of output that can be produced by an economy

A

Production possibility frontier (PPF)

90
Q

good/service for which it is not possible to establish individual property rights

A

Public good

91
Q

when individual choices are made by comparing benefits and costs of different actions and then selection the action that produces the greatest benefit

A

Rationality

92
Q

production of goods/services valued at constant prices

A

Real GDP

93
Q

period between a peak and a trough in economic activity

A

Recession

94
Q

using political influence to increase one’s economic profits at the expense of others

A

Rent seeking

95
Q

amount of reserves that the Federal Reserve requires banks to hold

A

Reserve requirement

96
Q

fraction of deposit liabilities that banks hold to meet depositor withdrawals

A

Reserves

97
Q

goods/services characterized by the fact that one person’s enjoyment of the good/service reduces the quantity available for others’ enjoyment

A

Rival goods

98
Q

different between a person’s disposable income and his/her expenditures

A

Savings

99
Q

inescapable fact of human existence that results from the fact that the available resources are always less then our limitless desires

A

Scarcity

100
Q

results from the mismatch in skills, locations, or other important characteristics between job seekers and available jobs

A

Structural unemployment

101
Q

two goods for which an increase in the price of one leads to an increase in the demand for the other

A

Substitutes

102
Q

graphical representation of the quantity of a good/service supplied as a function of the price

A

Supply curve

103
Q

table showing relationship between the price of a good/service and the quantity supplied

A

Supply schedule

104
Q

knowledge about techniques by which inputs are transformed into the goods/services that households desire

A

Technology

105
Q

total revenue received by a supplier

A

Total revenue

106
Q

sum of consumer and producer surplus

A

Total surplus

107
Q

depletion of a common resource due to overuse

A

Tragedy of the commons

108
Q

state of actively seeking paid work but being unable to find it

A

Unemployment

109
Q

number of unemployed workers as a fraction of the total labor force

A

Unemployment rate

110
Q

cost of production that depends on the quantity produced

A

Variable Cost

111
Q

ratio of nominal GDP to money supply; in effect, the average number of transaction supported by each dollar of the money supply

A

Velocity of money

112
Q

total value of assets used as a store of value

A

Wealth

Academic Decathlon (WWII) (12 decks)

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