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General Economics Knowledge
econ prep for macro E final
43
Economics
Undergraduate 2
05/04/2010

Additional Economics Flashcards

 


 

Cards

Term
consume more of something when marginal
Definition
benefit exceeds marginal cost
Term
Economics
Definition
make optimal choices under scarcity
Term
Economic Perspective
Definition
marginal benefit vs marginal cost
Term
"Other things equal"
Definition
a number of relevant variables are assumed to be constant
Term
Economizing Problem
Definition
need to make choices; wants exceed needs
Term
Slope of Budget Line
Definition
rise/run
P of Dependant over P of Independant
Term
Capital Goods Increase...
Definition
Rapid Growth Rate
Term
A Market
Definition
is a institution that brings together buyers and sellers
Term
personal distribution of income
Definition
refers to the way income is distributed among specific households
Term
functional distribution of income
Definition
to basic resource classes, that is, wages, rents, interest, profits
Term
Marginal Tax Rate
Definition
MTR = %^TT / %^TTI
Term
Import Quotas
Definition
do not facilitate world trade
Term
A Trade Deficit
Definition
occurs when a nation when it imports more than it exports
Term
Comparative Advantage
Definition
A good should be produced in that nation where its domestic opportunity cost is least
Term
NIPA
Definition
is the national income and product accounts, design and implement policies to improve economy's health
Term
GDP
Definition
is the monetary value of all final goods and services produced within the borders of a nation in a year
Term
If depreciation exceeds gross investment
Definition
the economy's stock of capital is shrinking
Term
GDP Formula
Definition
C + I + G + X
Personal Consumption Expense
+
Gross Private Domestic Investment
+
Government Purchases
+
US. Exports minus Imports
Term
NDP
Definition
NDP = GDP - Depreciation
Term
NI
Definition
NI = NDP + Net Foreign Factor
Term
PI
Definition
PI =
NDP
- Social Security
- Corporate Income Tax
- Undistributed Corp Taxes
+ Transfer Payments
Term
Real GDP
Definition
refers to GDP data that have been adjusted for changes in the price level
Term
Real GDP
Definition
Real GDP = GDP / (Price Index/100)
Term
Rule of 70
Definition
Years for GDP to x2 / 70

divide by 73 for better accuracy
Term
Total Output
Definition
TO = worker hours * labor productivity
Term
Significant Innovations
Definition
occur irregularly and unexpectedly
Term
Cyclical Unemployment
Definition
occurs during a recession
Term
Friction Unemployment
Definition
Switch from one job position to another
Term
Structural Unemployment
Definition
involving a mismatch of the skills of unemployed workers vs skills market needs
Term
Tax Break Even
Definition
Additional Disposable Income X MPS
Term
Expansionary Fiscal Policy
Definition
is designed to expand real GDP
Term
MPS
Definition
MPS = 1 - MPC
Term
A check to buy a car is
Definition
a medium of exchange
Term
A price tag is
Definition
a unit of account
Term
M1
Definition
Currency, checkable deposits
Term
M2
Definition
Currency
Small <100k time deposits
stock certificates
MM deposits
MMM fund balances by individuals
Term
Federal Reserve System
Definition
controls the money supply
Term
Federal Reserve System
Definition
controls the money supply
Term
the FOMC is made up of
Definition
the SEVEN member board of governors along with the president of the NYFRSB and four other FRB presidents
Term
Excess Reserves
Definition
ER = AR - RR
Term
Required Reserve Ration
Definition
RRR = Checkable Deposits / RR
Term
Money Multiplier
Definition
1 / RR
Term
Max Expanded Money Supply
Definition
D = multiplier * Excess Reserves
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