Term
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Definition
| GDP measured at constant (some base period) prices. |
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Term
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Definition
| the production of goods and services valued at current prices |
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Term
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Definition
| consumption, investment, government purchases, and net exports |
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Term
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Definition
| Spending on goods and services by households |
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Term
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Definition
| Spending on new equipment and structures, including households' purchases of new housing |
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Term
| Define Government Purchases |
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Definition
| Spending on goods and services by local, state, and federal governments |
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Term
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Definition
| The value of goods and services produced domestically and sold abroad (exports) minus the value of goods and services produced abroad and sold domestically (imports) |
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Term
| What is a good measure of economic well-being? |
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Definition
| GDP is a good measure because people prefer higher to lower incomes |
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Term
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Definition
| market value of all final goods and services produced within a country in a given period of time. |
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Term
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Definition
| [Nominal GDP / Real GDP] × 100 |
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Term
| What does GDP deflator reflect? |
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Definition
| the prices of goods and services |
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Term
| Inflation describes what situation? |
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Definition
| economy's overall price level is rising |
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Term
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Definition
| percentage change in some measure of the price level from one period to the next. |
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Term
| What is one measure that economists use to monitor the average level of prices in the economy and thus the rate of inflation? |
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Definition
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Term
| total expenditure in the economy must equal what? |
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Definition
| total income in the economy |
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Term
| Real GDP uses what to value economy's production of goods and services |
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Definition
| constant base-year prices |
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Term
| Nominal GDP uses what to value the economy's production of goods and services |
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Definition
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Term
What is calculated from the ratio of nominal to real GDP?
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Definition
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Term
| What does it GDP Measure? |
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Definition
| measures the level of prices in the economy |
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Term
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Definition
| study of how households and firms make decisions and how they interact |
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Term
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Definition
| the study of economy-wide phenomena, including inflation, unemployment and economic growth |
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Term
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Definition
| the reduction in total surplus that results when the tax reduces the size of a market below the optimum |
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Term
| what is the equation for Price elasticity of demand? |
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Definition
| ( Q 2 – Q 1 ) / [( Q 2 + Q 1 ) / 2] ( P 2 – P 1 ) / [( P 2 + P 1 ) / 2] |
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Term
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Definition
| a group of buyers and sellers of a particular good or service is a group of buyers and sellers of a particular good or service |
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Term
If the demand for a good falls when income falls what is the good called?
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Definition
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Term
If the demand for a good rises when income falls what is the good called?
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Definition
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Term
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Definition
| the limited nature of sciety's resources |
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Term
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Definition
| The study of how society manages its scarce resources |
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Term
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Definition
| the property of society getting the most it can from its scarce resources |
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Term
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Definition
| the property of distributing economic prosperity uniformly among the members of society |
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Term
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Definition
| whatever must be given up to obtaining some item |
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Term
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Definition
| a small incremental adjustment to a plan of action |
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Term
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Definition
| the ability of an individual to own and exercise control over scarce resources |
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Term
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Definition
| the impact of one person's actions on the well-being of a bystander |
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Term
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Definition
| the ability of a single economic actor or group to have a substantial influence on market prices |
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Term
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Definition
| an increase in the overall level of prices in the economy |
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Term
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Definition
| fluctuations in economic activity, such as employment and production |
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Term
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Definition
| input costs that do not require an outlay of money by the firm |
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Term
| Define: accounting profit |
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Definition
| total revenue minus total explicit cost |
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Term
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Definition
| total revenue minus total cost |
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Term
| Equation of Marginal Product of Labor |
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Definition
| Change in quantity divided by change in labor |
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Term
| Law of diminishing marginal product of labor is demonstrated by? |
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Definition
| Total output increases at a decreasing rate as you increase the quantity of labor |
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Term
| when someones marginal free-throw percentage is below the average, what can be determined? |
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Definition
| that the average must be falling |
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Term
| when the marginal cost curve is below the average total cost curve what must be happening to the total cost? |
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Definition
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Term
| when the marginal cost curve is above the average total cost curve then what is happening to the average total cost? |
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Definition
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Term
| for a U-shaped average total cost curve, the marginal cost curve intersects the average total cost curve where? |
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Definition
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Term
| What is the average total cost equal to? |
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Definition
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Term
| The model of a perfectly competitive market relies of three core assumptions, which is one of these? |
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Definition
| there must be many buyers and sellers - a few can't dominate the market. |
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Term
| The model of a perfectly competitive market relies of three core assumptions, which is one of these? |
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Definition
| firms must produce a standardized product - buyers must regard all sellers as equivalent |
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Term
| The model of a perfectly competitive market relies of three core assumptions, which is one of these? |
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Definition
| firms and resources must be fully mobile, allowing for free entry into and exit from the industry. |
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