Exam 1 economics Flashcards
(114 cards)
1
Q
The study of specific components within a major economy
A
Microeconomics
2
Q
Tangible item that people want and for which they would pay
A
Good
3
Q
Intangible good of labour for which people intend to pay
A
Service
4
Q
A mechanism that allows people to exchange goods
A
Market
5
Q
What is the human desire to have or use a certain good
A
Want
6
Q
The quantity of a good sell at a certain price under certain conditions
A
Supply
7
Q
The amount of a good that is bought at a certain price under certain conditions
A
Demand
8
Q
The first thing to understand about economics
A
Everything has to be work for
9
Q
The old fashioned word “spend more than you made”
A
Prodigality
10
Q
Anything used in the production and distribution of goods and services
A
Capital good
11
Q
Things produced for direct use for consumers
A
Consumer goods
12
Q
A truck is a consumer good or capital good
A
Depends
13
Q
The worth that consumers attach to something
A
Value
14
Q
2 things that determine the value
A
Scarcity and utility
15
Q
Founder of the Austrian school of economics
A
Carl Menger
16
Q
Carl Menger solved what riddle?
A
Water-Diamond Paradox
17
Q
The belief that a nation’s wealth is based on the amount of gold and silver that it possess
A
Mercantilism
18
Q
The difference in value of the goods that a country sells compared to those that purchases from other countries
A
Trade balance
19
Q
Taxes that government supply on imported goods
A
Tariffs
20
Q
The establishment of colonies and extensive territories created to benefit their mother countries
A
Imperialism
21
Q
Who would oppose to the mercantilism and say that wealth is based upon lands
A
Physiocrats
22
Q
“Hands off” approach to the economy
A
Laizess faire
23
Q
Founder of modern economics
A
Adam Smith
24
Q
What book did Adam Smith wrote
A
The wealth of nations (1776)
25
What did Adam Smith said brought the consumer and the producer together?
The invisible hand
26
Economic success, or the condition of enjoying many goods, including services.
Prosperity
27
The value of all the things that people own
Wealth
28
Factors of production
Labour
29
Natural resources
30
Capitalist
31
Robinson Crusoe was a capitalist?
Yes
32
Who wrote Robinson Crusoe
Daniel Dafoe
33
Who started the physiocrats?
Samuel Du Pont
34
Entrepreneurship in gunpowder
E.I. Du Pont
35
Components of capitalism
Free enterprise and competition in a market environment
Private property
Limited government
36
A song is what type of private property?
Intellectual
37
The relationship between a good's price and the amount that people are willing to buy
Demand
38
As the relationship between a good's price and the amount that producers are willing to provide for consumers
Supply
39
The 2 types of value
Value in use and value in exchange
40
The amount of money that a buyer pays the seller for a particular item
Price
41
As one's supply of a specific good increases the satisfaction derived for each additional unit decreases
Diminishing marginal utility
42
The amount of satisfaction that results from a one unit increase tends to become smaller with each additional unit
Marginal utility
43
The total amount of satisfaction for receiving a particular good is called
Total utility
44
As the price of a good increases the quantity demanded decreases
Law of demand
45
When the price of a good falls consumers tend to buy more of that good or other items because they can do so without giving up anything
Income effect
46
What indicates that people tend to substitute less expensive goods for ones who's prices has risen
Substitution effect
47
What is a list of numbers that compare price with quantity
Demand Schedule
48
Graphic representation of the quantity of goods purchased at different prices
Demand curve
49
Things that affect in quantity supplied
Price
50
A good who's demand is directly related to consumers incomes
Normal good
51
Demand for what type of items decreases as what incomes increases?
Inferior goods
52
A good often use in conjunction with other
Complement
53
"Other things remaining equal, as the price of a good increases, the quantity supplied also increases in a free market economy"
Law of supply
54
Graphic representation of quantity supplied
Supply curve
55
Things that affect in change supplied
Technology
56
What is called when a government would give money to improve production
Subsidies
57
What is point in which quantity supplied and quantity demanded stay equal
Equilibrium
58
The availability of what is a major reason that many goods are elastic
The availability of substitute
59
The sharper the curve, the more what?
Inelastic
60
Price ceilings results in what?
Shortage
61
Signs that are used by consumers and producers to determine how much of a good to buy or sell at a given price and time
Market signals
62
Non durable goods have a last expectancy less then?
3 years
63
Shadowy, underground systems
Black market
64
The part of an economy that is controlled by private individuals, businesses, and organizations.
Private sector
65
The reason that a person is willing to trade certain goods wether they are tangible items, or other goods.
Profit motive
66
The diminishing of the value of goods that is caused by wear and time.
Depreciation
67
The excess of the total revenue paid by buyers for goods over the seller's total expense of producing those goods
Profit
68
The value of the best alternative that is foregone when a different alternative is taken
Opportunity cost
69
The wage that will cost people who run their own establishments to hire managers to manage their business for them
Wage of management
70
Total value of a business minus any liability
Equity
71
A group of firms that produce similar products or provide similar services
Industries
72
Characteristics of the market models
73
How is known each firm in the market because it has no real control over the price it receives for its product- the firm *takes* whatever price it can get
Price takers
74
Can there be close substitutes in a monopoly?
No
75
Occurs when a single firm can fill the demand for a good more efficiently than if there were multiple firms in the industry.
Natural monopoly
76
Trade market is an example of what?
Legal monopoly
77
Example of monopolistic competition
Shampoo
Soap
78
American automobile manufactory is an example of what?
Oligopoli
79
4 leading forms must control what percent?
40%
80
When all firms get together is called?
Collusion
81
One of the first and most important antitrust laws was the...
Sherman Act
82
Act that outlawed several practices that were not specifically addressed in earlier laws
Clayton act
83
Force the consumer to buy a certain product before he can buy the product he really wants
Tying contracts
84
Selling the same type of goods at different prices to different buyers
Price discrimination
85
A governmental agency whose purpose is to investigate trade practices
Federal Trade Commission (FTC)
86
The quality of producing effectively with a minimum of waste
Efficiency
87
The total amount invested in the production of a good
Input
88
The total amount of a good that is produced
Output
89
What creates the Wealth of Nations?
Intelligent work
90
What makes possible a better standard of living for everyone?
Competition
91
The sum of all the factors of production used in making goods
Total cost
92
The sum cost of all the factors of production used in producing one unit of a good
Average cost
93
3 things that we need for mass production
Division of labor, or specialization
Standardized parts
Automatic conveyance (the assembly line)
94
Advantages of division of labour
Specialization
More goods produced per person
95
Disadvantage of division of labour
Boredom
96
Parts of the American system
Standardized parts
Specialization
Assembly line
97
When specialization it is carried beyond the maximum efficiency
Overspecialization
98
The ability of one entity to produce goods or provide services more efficiently than his competitors when given the same resources
Absolute advantage
99
The ability of an entity to produce a good
Comparative advantage
100
The production of goods in which a region has an absolute or a comparative advantage
Geographic specialization
101
Person who advocate of the principle of comparative advantage and talk about the risks of protectionism
David Ricardo
102
Whenever there are no restrictions or penalties placed upon the exchange of goods is called
Free trade
103
Taxes that must be paid on imported goods before they are allowed to enter an area
Tariffs
104
Why wages and salaries are not equal?
Location
Experience
105
Schemes to convince costumers to buy
Products o lower shelfs
106
If the supplies of workers decreases, the wages would?
Increase
107
Amount of works and goods that a worker produces in an amount of time
Productivity
108
What does PPC Stand for>
Production Possibility Curve
109
A shift outward demonstrates what?
Expanding economy
110
A system in which a centralized authority determines the production and distribution of goods and services as well as things like savings, investments, and prices
Command economy
111
A system in which people are free to make their own economic choices.
Free enterprise economy
112
When a system combines a good measure of free enterprise in some areas with heavy state regulation in others results on
Mixed Economy
113
Economic system that provides barely enough to keep a society alive
Subsistence economy
114
System in which the majority of a nation's capital is owned and controlled by private individuals and businesses.
Private capitalism
