Test 6 economics Flashcards
(193 cards)
1
Q
The human desire to have and use a certain good
A
Want
2
Q
The study of the choices that individuals and societies make in the production, distribution, and consumption of goods.
A
Economics
3
Q
The study of specific components within a major economy and how the choices made by individuals, households, and businesses affect that economy.
A
Microeconomics
4
Q
A tangible item that people want and for which they will pay
A
Good
5
Q
Intangible goods produced by labor for which people expect to pay
A
Service
6
Q
The quantity of a good for sale at a certain price under certain conditions or simply the amount of a good that is produced
A
Supply
7
Q
The amount of a good that is bought at a certain price under certain conditions
A
Demand
8
Q
First thing to understand about economics
A
Everything has to be worked for
9
Q
People who work to provide goods
A
Producer
10
Q
Those who use goods
A
Consumers
11
Q
Anything used in the production and distribution of goods and services
A
Capital
12
Q
What type of good is a computer?
A
It depends
13
Q
2 things that determine value
A
Scarcity and utility
14
Q
Worth that consumers attach to an item
A
Value
15
Q
Diamond-water paradox
A
Carl Menger
16
Q
Founder of the Austrian school of economics
A
Carl Menger
17
Q
System built on the state treasury, national wealth, and based on silver and gold
A
Mercantilism
18
Q
Tax on imported goods
A
Tariffs
19
Q
Philosophy that says that a nation’s wealth is based in how it uses its land
A
Physiocracy
20
Q
Very influential with the physiocrats
A
Samuel Du Pont
21
Q
Means “hands off”
A
“Lissez-Faire”
22
Q
Founder of modern economics
A
Adam Smith
23
Q
What book did Adam Smith wrote?
A
“The Wealth of Nations”
24
Q
The separation of work into individualized tasks
A
Division labour
25
Putting people in jobs they do best
Specialization
26
Who created the "invisible hand"?
Adam Smith
27
Economic success, or the condition of enjoying many goods, including services.
Prosperity
28
Goods can by produce only by certain amount of...?
Labour
29
Factors of production
1. Natural Resources
2. Labor
3. Capital
4. Entrepreneurship
5. Information
30
System that makes it decisions based upon customs, heredity and cast
Traditional economy
31
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
Direct economy
32
Economic system that provides barely enough to keep a society alive
Subsistence economy
33
Anyone who owns producer goods or owns a share of some business that produces goods
Capitalist
34
Was Robinson Crusoe a capitalist?
Yes
35
Gunpowder Industry
E.I. Du Pont
36
Basic components of capitalism
Freedom of enterprise in a market environment
Limited government
Property rights
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 two types of value
Value in use
Value in exchange
40
The amount of money that a buyer pays the seller for a particular item
Price
41
Phenomenon that states that as one's supply of a specific good or service increases, the satisfaction derived from each additional unit tends to decrease
Diminishing marginal utility
42
The amount of satisfaction that results from a one-unit increase of a product, tends to become smaller with each additional unit
Marginal utility
43
When the price of a good falls, consumers tend to buy more of that good or of other items because they can do so without giving up anything
Income effect
44
Indicates that people tend to substitute less expensive goods for ones whose prices have risen
Substitution effect
45
What must be to something to be elastic
Substitutes
46
A list of numbers that compares price with quantity demanded
Demand schedule
47
To which direction does the demand row goes?
Down and to the right
48
A good whose demand is directly related to consumers' incomes is called...
Normal good
49
Demand for these items decreases as consumers' incomes increase, and vice versa
Inferior good
50
A good often used in conjunction with another
Complement
51
What affect quantity demanded?
Price
52
Point at which supply and demand meet
Equilibrium
53
Area above the equilibrium
Surplus
54
The availability of what? is the reason many goods are elastic
Substitutes
55
When governments place a limit on how high a producer may charge for his product, we call it...
Price ceiling
56
Price ceiling results in?
Shortage
57
Price levels set above the equilibrium prices
Price floors
58
What do we have along the vertical axis?
Price
59
Reasons why wages and salaries may not be equal
Experience
Advanced degrees
Geographical location
Productivity
60
Ways in which business get you to buy more
Bo go's deal
Putting urgency on it
61
Amount of goods and services that a worker produces in an amount of time
Productivity
62
Wage employers will pay and workers will accept in an open competitive market
Market value
63
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
64
Goods that have a life expectancy of less than three years
Nondurable goods
65
Illegal systems for exchanging goods
Black Markets
66
The reason that a person is willing to trade certain goods wether they are tangible items, or other goods.
Profit motive
67
The value of the best alternative that is foregone when a different alternative is taken
Opportunity cost
68
The wage that will cost people who run their own establishments to hire managers to manage their business for them
Wage of management
69
What makes possible a better standard of living in a prosperous society
Competition
70
The purest form of competition, also called pure competition
Perfect competition
71
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 taker
72
The situation that arises when a single firm is the only supplier of a good for which no substitute exists
Monopoly
73
Example of natural monopoly
Utility
74
Deodorant is a type of what industry?
Monopolistic competition
75
A market that occurs when an industry is dominated by only a few firms
Oligopoly
76
When all firms get together is called?
Collusion
77
One of the first and most important antitrust laws was the...
Sherman act
78
Act that outlawed several practices that were not specifically addressed in earlier laws
Clayton act
79
Force the consumer to buy a certain product before he can buy the product he really wants
Tying contract
80
Selling the same type of goods at different prices to different buyers
Price discrimination
81
The quality of producing effectively with a minimum of waste
Efficiency
82
The sum of all the factors of production used in making goods
Total cost
83
The sum cost of all the factors of production used in producing one unit of a good
Average cost
84
3 elements of the American mass production
Division of labour
Assembly line
Standardized parts
85
When specialization it is carried beyond the maximum efficiency
Overspecialization
86
The ability of one entity to produce goods or provide services more efficiently than his competitors when given the same resources
Absolute advantage
87
The ability of an entity to produce a good or provide a service at an opportunity cost that is lower than that of another producer
Comparative advantage
88
The production of goods in which a region has an absolute or a comparative advantage
Geographic specialization
89
Person who advocate of the principle of comparative advantage and talk about the risks of protectionism
David Ricardo
90
The theory that domestic manufacturers need government protection against foreign competitors
Protectionism
91
The commitment of resources to a project or purpose that is expected to bring future profit to the investor
Investment
92
What does RND stands for?
Research and development
93
Where did much of the capital of RND goes to
Insurance companies
94
One who borrows money or capital is a...?
Debtor
95
One who lends money or capital
Creditor
96
Check is what type of account?
Transaction account
97
An account that guarantees a certain interest rate and has a specified maturity date
CD account
98
An account that allows limited transactions and pays an interest rate that changes with the demand for loans
Money market account
99
The FDIC ensures your money until what amount?
$250,000
100
Payments to insurance companies
Premium
101
An arrangement provided by an individual's employer for the intent of providing for the employee's retirement from work
Pension plan
102
A legal entity which is distinct from the people who own it
Corporation
103
Shares of a corporation's profit
Dividends
104
Safest form of investment
Bond
105
Investment companies that combine the resources of all their shareholders and invest the money in a wide variety of areas
Mutual funds
106
Assets that flow easily since they can be converted into other investments or cash without much time or difficulty
Liquid assessments
107
3 elements of investments
Amount invested, time, rate of return
108
Anything that is generally accepted as a means of payments
Money
109
The three purposes of money
1. Be a medium of exchange
2. Provide a measure of value
3. Provide a store of value
110
The direct exchange of one good for another good without a standard form of money passing from hand to hand
Barter
111
Money slow to wear out
Durability
111
When money is easy to carry about
Portability
112
Coined metallic money
Specie
113
The idea that people will save forms of money that seem more stable and valuable and spend forms of money that seems less valuable; named after Sir Thomas Greshman's observation that **"bad money drives out good"**
Gresham law
114
If prices decrease because money seems more valuable and stable
Deflation
115
A system which allows banks to hold less than 100 percent of deposits in reserve
Fractional Reserve Banking
116
Legal tender that is backed by nothing but a government's promise
Fiat money
117
More narrowly defined type of money
M1
118
Agency that prints money
United States Department of the Treasury
119
The central banking network of the United States ultimately responsible for forming American monetary policy and for controlling the national money supply
Federal Reserve System
120
"Chicago school of ecomonics", Monetarism
Milton Friedman
121
The theory that the variation in the money supply is the main source of economic fluctuations
Monetarism
122
An stablished system of political administration by which a nation, state, society, or organizations is ruled
Government
123
Year of the gold rush
1849
124
When was the gold discovered?
1848
125
In who's mill was the gold discovered?
John Sutter
126
President during the Louisiana purchase
Thomas Jefferson
127
Year of the Louisiana purchase
1803
128
An economic system based upon collective ownership and control of national resources
Socialism
129
Large, complex organizations made up of appointed officials and their numerous agencies and departments
Bureaucracies
130
Governmental practices which have harmed economic systems over centuries
1. Excessive taxation
2. Inflation and debasement of money
3.Excessive public expenditure
4.Excessive regulation and direction of the economy
5. Political plundering of the economy
131
Who said "The government ought to confine activity to everything that is truly and properly public"
Edmund Burke
132
President who advocated the New Deal
T. Roosevelt
133
Who is the British economist who advocated "spending your way out of debt"
John Maynard Keynes
134
Criticism on the free market
Competition
Business cycle
Inflation
135
Highest point of the business cycle
Peak
136
After the peak it follows a
Recession
137
In a recession we spect to last no longer that how much?
2 months
138
The value of all finished goods and services produced within a country during a year's time
Gross Domestic Product, GDP
139
The value of all finished goods and services produced by a **nation's** citizens during a year's time
Gross National Product, GNP
140
What immediately follows a through
Boom
141
Components of the economy that normally change before the rest of the economy
Leading indicators
142
Inflation that is caused when the demand becomes greater than the supply resulting in shortages
Demand-pull inflation
143
When a demand-pull inflation occurs, what happen?
There is a shortage
144
Inflation triggered when businesses face rising production costs, forcing them to increase the prices they charge for their goods
Cost-push inflation
145
Common tool to measure inflation
Consumer Price Index, CPI
146
Years of the base periods
1982-1984
147
Period that serves as a reference point to which prices are compared in the Consumer Price Index
Base period
148
Economic condition in which high inflation is combined with high unemployment, resulting in stagnation of productivity
Stagflation
149
President who popularise the idea of supply-side economics
Ronald Reagan
150
The theory that reduction of taxes makes more money available for private investment in capital and research, thereby increasing productivity.
Supply-side economics
151
Year for the Bolshevik revolution
1917
152
Economic system based upon public ownership and governmental control of the production and distribution of nearly all national resources
Communism
153
In which writing did Karl Marx established "In order to establish equality we must establish inequality"?
Dus Capital
154
Property owners
Burgeois
155
Common working class
Proletariat
156
"to each according to its abilities, to each according to its needs"
Karl Marx
157
Communism society lack what?
Competition
158
Names given by economists to the different socialistic economic systems
Welfare capitalism
Managed capitalism
Democratic socialism
Market socialism
159
When a government saves an organization from going to bankruptcy
Bail out
160
A philosophy which regards the entire world as one giant community that should be unified politically and economically
Globalism
161
One of the most prominent global bodies, created to maintain world peace
The United Nations, UN
162
How much countries are in the UN?
193
163
Permanent members on the security council
5
164
Problem with the general assembly vote
Equal voting regarding of population size
165
First established at the end of WWII to lend money to Japan and the countries of Wester Europe. Now it transformed into a type of international welfare agency that lends funds to some of the world's poorest governments.
World bank
166
Institution of the World Bank that focuses on the world's poorest countries
International Bank for Reconstruction and Development (IBRD)
167
Special agency linked to the UN created at the same time as the World Bank
International Monetary Fund (IMF)
168
Not an UN agency but cooperates with it. Is hailed as the only global body dealing with the trade rules that have been stablished among the world's countries.
World Trade Organization (WTO)
169
This agreement called for the elimination of tariffs and other trade restrictions that existed between these countries to encourage free trade
North American Free Trade Agreement (NAFTA)
170
The UN has what currency?
Euro
171
The exclusive power of an independent state to rule and regulate internal affairs without foreign interference
National Sovereignty
172
Which agreement is better in a international trade?
Bilateral agreement
173
Organization that enforces the most favour policies
The WTO
174
Its said by the globalists that the ...have the moral obligation to aid the Less developed countries (LDC)
Industrial Advance Countries (IAC)
175
Arguments of the globalists
Environment
176
One way of reducing global warming designed to require nations to buy allowances of "carbon credits" to decrease CO2 and reduce greenhouse emissions.
Kyoto Protocol
177
Prophet of Doom, published Essay on the Principle pf Population as It Affects the Future Improvement of Society
Thomas Robert Malthus
178
Incredibly clean form of energy
Nuclear energy
179
What represented the private sector
The goose
180
Material prosperity depends upon what?
Moral convictions and behavior
181
Quality work in an effective manner
Industriousness
182
The willingness to take risks, the strength to endure hard times, and the ability to hold out against the disappointment, harassment, ingratitude, and folly that may occur.
Fortitude
183
Idea that have people invest in me and pay investors with that.
Ponzi scheme
184
Two types of taxes
Direct taxes
185
Tax payed directly to the government
Direct taxes
186
Taxes payed by someone else responsability
Indirect taxes
187
Example of indirect tax
Sales tax
188
Which type of tax has the American government that says that the more you make, the more you are taxed
Progressive income tax
189
The amount of money that I owe
National debt
190
What is full employment
Those who are able and willing to get a job
191
Legal construct owed by stockholders
Corporation
192
Corporation of 100 shares
S corporation
