Part Four Flashcards
(50 cards)
Government Paternalism
The condition that exists when the political leadership believes that the principle of caveat emptor cannot or should not be relied upon
Gross Domestic Product (GDP)
The total dollar value of all new goods and services sold during a fiscal year, which were produced within the geographic borders of a country regardless of the nationality of the producers. (See gross national product)
Gross National Product (GNP)
The total dollar value of all new goods and services sold during a fiscal year, which were produced by a nation’s permanent residences, regardless of where they produced it. (See gross domestic product)
Growth and Development
As defined by Joseph Alois Schumpeter, economic growth means more, as opposed to economic development which means change. Economic development is the result of entrepreneurial innovation. (See innovation and entrepreneurship)
Hard vs. Soft Science
An academic discipline is considered hard or soft as a reflection of the degree to which mathematics is used to describe or teach the type of subject matter
Harrod-Domar Accelerator Principle
In a growing economy, the rate of growth must continually increase to create the requisite new capital and simultaneously replace worn out capital, thus guaranteeing that continuous growth is possible.
Hedging
Paying a premium to another party (e.g., insurance company) to bear or absorb a risk
Hedonism
Aristotle set for this natural law: All men seek pleasure and avoid pain.
Hegelian Logic
George Wilhelm Friedrich Hegel’s application of Plato’s dialectics (thesis, antithesis, synthesis) to the study of history. (See dialectic and dialectical materialism)
Height of Function
Where a function intersects the y-axis when x=o
History of Economic Thought
The study of the development of economic principles and analysis. (See economic history)
Homestead
In law, a state statute that protects real estate from seizure from creditors
Homogeneity
The condition that exists when all physical characteristics are identical
Homogenous Products
Goods standardized by government regulation or industrial convention. (See differentiated products)
Hypothesis
In logic, a conditional proposition, i.e., an assumption or set of assumptions provisionally accepted as a basis for reasoning or argument. It may be internally consistent, as in a syllogism, or experimental, as in scientific proposition advanced as possibly true.
Illiquidity
When current liabilities are greater than current assets. (See Note on Accounting and Finance)
Imperialism
The use of force to establish authority of one nation over another for the extension of its political sphere, the exploitation of raw materials, the development of foreign trade, or genocide; e.g., 19th century English colonies, the Soviet Union, or Chinese hegemony over Tibet.
Import License
Government authorization that requires the recording or transactions and is sometimes used to restrict the amount and/or kinds or products that can be imported
Incidence of a Tax
The ultimate burden of a tax. The tax paid that would otherwise be captured by the buyer or seller if there were no tax
Income Effect
When the price of a good is decreased and it thereby increases real income, and as a result, the quantity demanded is increased. (See substitution effect, superior good, and reverse income effect)
Income Redistribution
The result of a change in government policy whereby one group or sector is made better off by making another group or sector worse off; e.g., a Robin Hood scheme.
Income Statement
(See note on Accounting and Finance)
Indifference Curve
A function that shows how much of one good it takes to make someone ambivalent to a given amount of some other good. An asymptomatic isoquant that assumes convexity, rationality, and transitivity.
Inductive Logic
Reasoning from the particular to the general. The logic of empiricism; extrapolating the future from the experience of the past. (See methodology and deductive logic)
