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1
Q

what is economics?

A

the study of how individuals and societies choose to allocate scarce resources, why they choose to allocate them that way, and the consequences of those decisions

2
Q

what is capital?

A

things produced to produce other things (tools, not financial assets)

3
Q

what is microeconomics?

A

a social science that focuses on choices made by individual actors

4
Q

what is macroeconomics

A

a social science that focuses on the overall ups and down in the economy

5
Q

what are positive economics?

A

a statement that can be tested in theory regardless if agreeable or not

6
Q

what are normative economics?

A

a statement that speaks from morals, opinions, and ethics and cannot be tested

7
Q

machinery in a factory is an example of _______

A

capital

8
Q

what is ceteris paribus?

A

a Latin phrase meaning “all else equal” (all things are equal)

9
Q

what is scarcity?

A

it is essential to economics and is the fact that there is a limited amount of resources to satisfy unlimited wants

10
Q

what is opportunity cost?

A

the desirable alternative given up as a result of a decision

11
Q

“people who aren’t working, even though they could work, is wrong and unfair” is a _________ statement

A

normative

12
Q

“the price of milk should be $6 a gallon to give dairy farmers a higher living standard and to save the family farm” is a _________ statement

A

normative

13
Q

“programs like welfare reduce the incentive for people to work” is a ________ statement

A

positive

14
Q

“raising taxes on the wealthy to pay for government programs grows the economy” is a ________ statement

A

positive

15
Q

what is absolute advantage?

A

when a producer, given the same amount of time and resources, can produce more of a given item than another producer

16
Q

what is comparative advantage?

A

when a producer has a lower opportunity cost than another producer

17
Q

“raising taxes on the wealthy slows economic growth” is a ________ statement

A

positive

18
Q

what is a free resource?

A

something that has abundant amounts where everyone gets as much as they like

19
Q

what is law of demand?

A

as prices increase, the quantity demanded decreases. as prices decrease, the quantity demanded increases

20
Q

what is quantity demanded?

A

a movement along the curve

21
Q

caviar is an example of a _______________

A

scarce resource

22
Q

what are substitutes?

A

when the rise in price of one good leads to an increase in demand of another good

23
Q

what are complements?

A

goods that are consumed together

24
Q

what are normal goods?

A

goods that increase in its demand due to a rise in consumers’ income

25
Q

what are inferior goods?

A

goods that decrease in its demand due to a rise in consumers’ income resulting in normal goods becoming the superior

26
Q

what is the law of supply?

A

the higher the price, the more producers want to produce

27
Q

working in a factory is an example of _____

A

labor

28
Q

planting seeds is an example of _____

A

labor

29
Q

harvesting crops is an example of _____

A

labor

30
Q

farms are an example of ____

A

land

31
Q

natural resources such as minerals, oil, air, and energy are all examples of ____

A

land

32
Q

what is a recession?

A

when a country’s output and employment is falling

33
Q

what is unemployment?

A

the measure of all the people without a job, but actively looking for one

34
Q

what is inflation?

A

a sustained increase in the general price level in an economy

35
Q

natural resources such as minerals, oil, air, and energy are all examples of ____

A

land

36
Q

the great depression is an example of a ______

A

trough

37
Q

the ______________ crisis of 1923 in Germany (after ww1) is an example of _________

A

hyperinflation;inflation

38
Q

trade-off is measured in terms of _______________

A

opportunity cost

39
Q

if an economy is _________ then it means that no missed opportunities anywhere along the curve

A

efficient

40
Q

a production possibilities curve is ________ when the opportunity cost does not ______ as you move along the curve

A

straight;change

41
Q

what table shows how much of a particular good or service people are willing to buy at different price points?

A

demand schedule

42
Q

the ____________ is a graph of the demand schedule

A

demand curve

43
Q

the ____________ is a graph of the demand schedule

A

demand curve

44
Q

change in _________________ is only affected by price

A

quantity demanded

45
Q

change in ______ indicates an increase in demand at ___________

A

demand;every price

46
Q

as demand increases, the curve shifts to the _____

A

right (rightward shift)

47
Q

as demand decreases, the curve shifts to the ____

A

left (leftward shift)

48
Q

as demand decreases, the curve shifts to the ____

A

left (leftward shift)

49
Q

a change in the price of related goods or services (complements/substitutes) is an example of…

A

factors that shift the demand curve

50
Q

changes in income are an example of…

A

factors that shift the demand curve

51
Q

changes in taste are an example of…

A

factors that shift the demand curve

52
Q

changes in expectations are an example of…

A

factors that shift the demand curve

53
Q

changes in the number of consumers are an example of…

A

factors that shift the demand curve

54
Q

going to chic-fil-a when getting more income instead of going to mcdonalds is an example of…

A

normal goods (chic-fil-a would be the normal good)

55
Q

everyone wanting to buy fidget spinners in 2017 but now they are considered “dead” and no longer in high demand is an example of…

A

tastes (people no longer are interested in fidget spinners)

56
Q

the price of gummy bears increasing so the demand in gummy worms increases is an example of…

A

substitutes (more people are willing to buy gummy worms at any price)

57
Q

people waiting until july to buy a macbook laptop because apple decreases the price in july is an example of…

A

expectations (not buying a laptop because of an expected price drop)

58
Q

people waiting until july to buy a macbook laptop because apple decreases the price in july is an example of…

A

expectations (not buying a laptop because of an expected price drop and changing the demand of laptops in june)

59
Q

a surge in population thus more demands (wantholes) is an example of…

A

changes in number of consumers (an increase in population=more consumers)

60
Q

a surge in population thus more demands (wantholes) is an example of…

A

changes in number of consumers (an increase in population=more consumers)

61
Q

TRIPE (the factors that shift demand curve)

A

tastes, related goods, income, population, expectations

62
Q

changes in the input prices are an example of…

A

factors that shift the supply curve

63
Q

changes in the prices of related goods are an example of…

A

factors that shift the supply curve

64
Q

changes in technology are an example of…

A

factors that shift the supply curve

65
Q

changes in expectations are an example of…

A

factors that shift the supply curve

66
Q

changes in the number of producers are an example of…

A

factors that shift the supply curve

67
Q

changes in the number of producers are an example of…

A

factors that shift the supply curve

68
Q

to make gummy bears, producers need inputs such as gelatin so if the price of gelatin rises producers are more likely to produce less gummy bears which is an example of…

A

changes in input prices

69
Q

cars and gasoline are examples of…

A

complements

70
Q

if a producer can create new technology that can make their product cheaper so they are more likely to produce more of the product is an example of…

A

changes in technology

71
Q

since gasoline demand spike in the summer, so gas manufacturers (producers) hold on to the excess supply of gas during the winter and spring and wait until the summer to bring the gas to market. which is an example of…

A

changes in expectations

72
Q

since gasoline demand spike in the summer, so gas manufacturers (producers) hold on to the excess supply of gas during the winter and spring and wait until the summer to bring the gas to market. which is an example of…

A

changes in expectations

73
Q

if there are more companies (producers) making gummy bears, then there are more gummy bears supplied to the world, which is an example of…

A

changes in the number of producers

74
Q

when demand for a good or service increases, then the _________________ will rise and the ____________________ will rise

A

equilibrium price;equilibrium quantity

75
Q

when supply of a good or service _________, the equilibrium price _________ and the equilibrium quantity _________

A

decreases;inccreases;decreases

76
Q

when demand _________ and supply _________, then the equilibrium price will ________

A

increases;decreases;increase

77
Q

what is the total quantity demanded across all consumers in a market for a given good?

A

market demand

78
Q

what is the total quantity demanded across all consumers in a market for a given good?

A

market demand

79
Q

what is the business cycle stage that follows a recession?

A

recovery

80
Q

what is the low point of the GDP before it begins to turn upward?

A

trough

81
Q

what is the low point of the GDP before it begins to turn upward?

A

trough

82
Q

what is a business cycle?

A

the upward and downward movement levels of the GDP

83
Q

what is the price in a market at which the quantity demanded and the quantity supply of a good are equal to one another?

A

equilibrium price

84
Q

__________________ is determined by the intersection of the supply and demand curves

A

market equilibrium

85
Q

what is the quantity that will be sold and purchased at the equilibrium price?

A

equilibrium quantity

86
Q

______________ is the relationship between how much money a country pays for its imports and how much it brings from exports

A

terms of trade

87
Q

what is the method of production whereby a producer focuses on a production of a good for the sake of efficiency?

A

specialization

88
Q

what is an industry where input prices do not change when industrial output changes?

A

constant costs

89
Q

_____ is a general tendency for the value of a variable to rise or fall.

A

trend