Book Definitions Flashcards
(28 cards)
Endemic - adjective
Regularly found among particular people or in a certain area
Endemic Advertising
Endemic advertising refers to ad placement where it is native or natural to its market
ubiquitous - adjective
present, appearing or found everywhere
Prisoner Dilemma
The prisoner’s dilemma is a paradox in decision analysis in which two individuals acting in their own self-interest pursue a course of action that does not result in the ideal outcome.
Paradox - noun
seemingly absurd or self-contradictory statement or proposition that when investigated or explained may prove to be well founded or true. Synonyms: contradiction
Invisible Hand Theory
The term “invisible hand” is a metaphor for how, in a free market economy, self-interested individuals operate through a system of mutual interdependence to promote the general benefit of society at large. It was introduced by Scottish enlightenment thinker Adam Smith in his book “An Inquiry into the Nature and Causes of the Wealth of Nations” (1776)
Game Theory
Game theory is the study of human conflict and cooperation within a competitive situation. In some respects, game theory is the science of strategy, or at least the optimal decision-making of independent and competing actors in a strategic setting. The key pioneers of game theory were mathematicians John von Neumann and John Nash, as well as economist Oskar Morgenstern.
Rational Irrationality
he term refers to someone who makes a seemingly reasoned assessment based on unreasonable evidence. When a person believes in something and thinks the belief is rational despite a preponderance of evidence to the contrary, you arrive at that the concept of rational irrationality.
Utopian
utopia - noun - an imagined place or state of things in which everything is perfect Utopian - adjective - modeled on or aiming for a state in which everything is perfect; idealistic.
Huard Instinct
a mentality characterized by a lack of individual decision-making or thoughtfulness causing people to think and act in the same as the majority of those around them. In finance, a heard instinct relates to instances in which individuals gravitate to the same or similar investments based almost solely on the fact that many others are investing in those stocks.
tenet
a principle or belief, especially one of the main principles of a religion or philosophy.
Free Market
an idealized system in which the prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.
Market Types
Goods Market - Buying and selling of goods and services Money Market - interaction between demand for money and supply of money. Financial market - any marketplace where trading of securities including equities, bonds, currencies and derivatives.
efficacy - noun
the ability to produce a desired or intend result. Synonyms: effectiveness, success, productiveness
Positive/Negative Feedback loops
Positive feedback loops enhance or amplify changes; this tends to move a system away from its equilibrium state and make it more unstable. Negative feedbacks tend to dampen or buffer changes; this tends to hold a system to some equilibrium state making it more stable
laissez faire
a policy or attitude of letting things take their own course, without interfering. Economics: abstention by governments from interfering in the workings of the free market.
perfect competition
the situation prevailing in a market in which buyers and sellers are so numerous and well informed that all elements of monopoly are absent and the market price of a commodity is beyond the control of individual buyers and sellers.
sovereign debt - noun
the amount of money that a country’s government has borrowed, typically issued as bonds denominated in a reserve currency.
benevolence
the quality of being well meaning; kindness.
self fulfilling prophecy
s a prediction that directly or indirectly causes itself to become true, by the very terms of the prophecy itself, due to positive feedback between belief and behavior.
objectively - adverb
in a way that is not influenced by personal feelings or opinions.
general equilibrium theory
general equilibrium theory attempts to explain behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that interaction of demand and supply will result in overall general equilibrium.,
maximum utility
when making a purchase decision, a consumer attempts to get the greatest value possible from expenditure of least amount of money. His or her objective is to maximize the total value derived from the available money.
Utility
the total satisfaction received from consuming a good or service. The economic utility of a good or service is important to understand because it will directly influence the demand, and therefore price, of that good or service. A consumer’s utility is hard to measure, however, but it can be determined indirectly with consumer behavior theories, which assume that consumers will strive to maximize their utility.
