Quiz #11 Vocab Flashcards Preview

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Flashcards in Quiz #11 Vocab Deck (18):
0

Costs that do not change with levels of production
Ex: rent or lease payments

Fixed costs

1

Costs that change with levels of production
Ex: wages

Variable cost

2

A drop in business activity or fall in aggregate demand
GDP shrinks

Recession

3

The pay off an entrepreneur seeks when she/he goes into business

Profit

4

Price at which quantity supplied equals quantity demanded

Equilibrium

5

Something that motivates a certain behavior

Incentive

6

Something that motivates you not to do something

Disincentive

7

Dislike of or desire to avoid

Averse

8

To discourage

Deter

9

Goods used to produce other goods

Capital goods

10

Getting the most production/benefit for the lowest cost

Efficiency

11

Goods that are nonexcludable and non-divisible; cannot be efficiently produced by the private market and are provided by the government
Ex: roads, streetlights

Public goods

12

Economics that involves value judgments; inserting personal values into Data

Normative economics

13

Sudden restrictions in supplying that cause high prices and shortages

Supply shocks

14

Statement of international flows of money

Balance of payments

15

Fall in value of an asset or currency

Depreciation

16

Rise in value of an asset or currency

Appreciation

17

Economics that confines itself to data analysis and avoids value judgments

Positive economics