Shared Flashcard Set

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Econ 340
Midterm
21
Business
Undergraduate 3
03/06/2013

Additional Business Flashcards

 


 

Cards

Term
Foreign Exchange Rate
Definition
The price of one country's money in terms of another.
Term
types of foreign exchange rate systems
Definition
Fixed exchange
Flexible Exchange
Term
Fixed Exchange Rate
Definition
central banks buy and sell their own money to keep their exchange rates fixed at a certain level
Term
Flexible Exchange rate
Definition
exchange rates fluctuate according to the forces of demand and supply in the marketplace.
Term
Demand for dollars
Definition
Demand for dollars is from people and businesses who
want to spend in the U.S., either to buy goods or assets.
Term
Supply of dollars
Definition
Supply of dollars is from people and businesses in the
U.S. who want to buy goods or assets in other countries.
Term
Appreciation of money
Definition
when your money rises, its price in terms of other country's money rises
Term
Depreciation of money
Definition
when your money decreases, its price in terms of other country's money goes down
Term
reasons for changes in supply and demand of FX
Definition
Interest rates, Price Levels, expectations, gov. policy
Term
Balance of payments
Definition
A record of economic transactions between the home country and the rest of the world during a given period
Term
Current Account
Definition
Exports and imports
Term
Capital Account
Definition
US assets(-) vs. Foreign assets in the US(+)
Term
Majority and Supper Majority
Definition
decisive with 2 choices, 51% for majority nad 66% super majority
Term
Plurality voting
Definition
easiest voting method, most votes wins
Term
Plurality voting with a run off.
Definition
2 round election, top two vote getters in first round compete in second round
Term
Condorcet Voting
Definition
Majority rule between 2 alternatives. Run winner against the other. This type of social choice mechanism can result in
what is called cycling, or the voting paradox.
Term
Approval Voting
Definition
votes for as many canaditates as they want. Candidate with most votes wins
Term
Borda Voting
Definition
First place receives most votes and so on. Used for ranking teams in college sports.
Term
Game theory
Definition
A theory of decision making by the
participants in an interdependent context
Term
Dominant Strategy
Definition
An action rule that
maximizes the decision maker’s welfare
independent of the actions of other player, i.e., no matter what the other player does
Term
Dominant Solution
Definition
The result of a game when both players follow a dominant strategy.
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