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Agriculture Resources and Economics
Final Exam
30
Economics
Undergraduate 2
12/14/2010

Additional Economics Flashcards

 


 

Cards

Term
Command Economy
Definition
A central authority decides what is produced and who gets what.
Term
Market/Price Economy
Definition
Relies on individual self-interest to decide how resources are used.
Term
Oppurtunity Cost
Definition
The cost of anything is the value of what you can't buy with those same
resources
Term
Microeconomics
Definition
the economics applied to households and businesses and their
their interaction in the market (market is simply where buyers and sellers come
together)
Term
Macroeconomics
Definition
the economics applied to the national economy and government
economic policy
Term
Incentive
Definition
market economy is based on ______. Seller's _____ to make a profit. Consumer's _______ to improve their lives.
Term
price
Definition
"signal" to business
Term
The "Invisible Hand"
Definition
Adam Smith- RESOURCES MOVE TO
WHERE THEY ARE HIGHEST VALUED – BY
PRICE – WITHOUT ANY CENTRAL AUTHORITY BEING INVOLVED
Term
Utility
Definition
benefit we get from buying something
Term
Marginal Utility
Definition
an additional unit of something falls the more units you are already using.
Term
Normal Good
Definition
people with more income usually purchase more, at any price, than
people with less income
Term
Inferior Good
Definition
people with higher income purchase less than people with lower income, second hand
clothes, fast food, and inexpensive vehicles.
Term
Preferences
Definition
influences on purchases and use
that aren't based on prices and income. Ex: advertising, peer-pressure,
health concerns
Term
Real Dollars
Definition
Past $ amount in Y x (cpi in 2010/CPI in Y year)
Term
Salary (or wage)
Definition
price of labor
Term
open shop states
Definition
states where unions are not allowed to require membership
Term
Closed Shop State
Definition
states that allow unions to control an industry - that is, they are allowed to require membership
Term
Stocks
Definition
ownership of net assets of a company
Term
Inflation hedges
Definition
items with limited supply ex. real estate, precious metals, collectibles
Term
Cash
Definition
investments easily convertible to cash, like money-market funds and
very short term CDs
Term
Long-term bonds
Definition
investments earning a fixed interest rate over a long period
Term
Passive Management
Definition
diversify investments among all the types
Term
Active Management
Definition
Try to perceive what stage the economy is in and then
buy the type of investment that does best in that stage
Term
Tax-favored investments
Definition
investments which get a tax break, by having their
interest earnings either not taxed or taxed at a lower rate
Term
sole proprietorship
Definition
one owner runs everything
Term
partnership
Definition
multiple owners
Term
corporation
Definition
shareowners own the business; shares can be bought and sold;
shareholders hire a CEO (chief executive officer) to run the corporation
Term
quota
Definition
limitation on amount of imports
Term
tariff
Definition
tax on import
Term
implicit price deflator
Definition
the consumer price index plus the producer price index
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