Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Econ Final > Econ Final > Flashcards

Econ Final Flashcards

1
Q

What is the study of economics concerned with?

A

How society manages scarcity of resources

independent decisions, decisions of firms, societal concerns

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Opportunity cost

A

whatever is given up to obtain something (time, money)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

marginal change

A

small, incremental adjustment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

tradeoff

A

when you spend (time, money) doing one thing, there is less (time, money) for something else

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

market

A

group of buyers and sellers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Production Possibilities Frontier

A

How much of a good or service can be produced in a certain amount of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Point above production possibilities frontier

A

that amount of a good or service is impossible to produce in that amount of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

point below production possibilities frontier

A

could be producing more of that good or service at that time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

does a change in price shift supply or demand?

A

neither, point will move along curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

demand shifters:

A
  • expectations of consumers
  • number of consumers
  • tastes
  • price of related goods
  • consumer income
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

supply shifters-

A
  • weather
  • government policies
  • number of sellers
  • expectations of sellers
  • input price
  • technology
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Quantity demanded

A

the amount of a good buyers are willing to and able to purchase
(moves along curve)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

law of demand

A

quantity demanded of a good falls when the price of the good rises

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

quantity supplied

A

amount of a good that sellers are willing to and able to sell
(moves along curve)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

law of supply

A

quantity supplied of a good rises when the price of a good rises

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

expectation of consumers

A

demand shifters

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

number of consumers

A

demand shifter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

tastes

A

demand shifter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

price of related goods (complementary and substitute)

A

demand shifters

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

consumer income

A

demand shifter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

weather

A

supply shifter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

government policies

A

supply shifter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

number of sellers

A

supply shifter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

technology

A

supply shifter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
input price
supply shifter
26
expectations of sellers
supply shifter
27
price floor
lowest a price can be
28
price ceiling
highest a price can be
29
normal good
a good you would normally buy with a normal income (steak)
30
inferior good
a good you would buy because the better quality item couldn't be bought with that income (ramen)
31
complementary good
a good often bought alongside another (hotdogs and bun)
32
substitute good
a good bought instead of another good (hotdogs instead of hamburgers)
33
normal rate of unemployment
inevitable unemployment that will always be there
34
cyclical unemployment
"sick" economy happens during recession or depression when unemployment rate increases from normal rate
35
structural unemployment
long term unemployment when there are fewer jobs than people
36
frictional unemployment
short term unemployment that happens when people are looking for a job that suits their skills
37
discouraged workers
workers that have stopped looking for work but are still without jobs
38
who sends survey to calculate unemployment rate
bureau of labor statistics
39
labor force
employed+unemployed
40
employed
full time or part time workers, unpaid workers in a family business, self employed
41
unemployed
- 16+ - able to work - have looked for work in past 4 weeks
42
unemployment rate formula
unemployed/labor force
43
cpi (consumer price index)
what and quantity of what consumers buy
44
base year cpi
100
45
cpi formula
100xbasket price this year/basket price base year
46
inflation rate formula
100%xcpi current year-cpi last year/cpi last year
47
who calculates cpi
bureau of labor statistics
48
real interest rate
adjusted for inflation | nominal interest rate-inflation rate
49
nominal interest rate
not adjusted for inflation
50
Demand pull inflation
when the aggregate demand exceeds aggregate supply
51
cost push inflation
when overrall prices increases due to an increase in cost of wages or materials
52
Aggregate demand
GDP, demand for all finished goods and services produced in the economy
53
elasticity
how responsive the consumer is to a change in price
54
inelastic
not responsive to a change in price
55
is cereal elastic or inelastic
inelastic
56
are rice krispies elastic or inelastic
elastic
57
price elasticity of demand
percentage change in quantity/percentage change in price
58
liquidity
how easily something can be used as a medium of exchange
59
rank from most to least liquid - painting - money in bank account - cash
1. cash 2. money in bank account 3. painting
60
functions of money
- medium of exchange - standard of value (unit of account) - store of value
61
medium of exchange
an item buyers give sellers to purchase a good or service
62
unit of account (standard of value)
yardstick people use to post prices and record debts
63
store of value
item people use to transfer purchasing power from present to future
64
Cost of Living Adjustment (COLA)
an agreement based on the cpi negotiated with boss that increases your salary each year according to inflation rate
65
Classical economics
market economics worked except for temporary upheavals | laissez faire
66
Keynesian theory
supported government involvement and spending
67
keynesian multiplier
used to predict changes in gdp based on changes in spending and taxes one person's spending becomes another's income
68
Marginal propensity to save
change in saving/change in disposable income
69
marginal propensity to consume
change in spending/change in disposable income
70
spending multiplier
1/mps
71
tax multiplier
-mpc/mps
72
fiscal policy
taxes and spending applied by congress with long inside lag, short outside lag
73
monetary policy
federal reserve manipulation manipulation of the money supply with a short inside lag and long outside lag
74
monetary policy actions
- buy bond - manipulate reserve requirement - change interest rate
75
fiscal policy actions
- reduce/increase tax rates | - increase/decrease gov spending
76
indexation
dollar amount is indexed for inflation if automatically corrected for inflation by contract/law

Econ Final (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions