Term
| names of things we are comparing are called |
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Definition
Verticle -y axis on table this is a verible the amounts under the varibles are values.
the varible has different values
Horizontal - X axis |
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Term
| the line on the graph is / we say there is a _____ or _____ relationship |
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Definition
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Term
| The line on the graph is downward from top to bottom we say there is a ____ or ___ relationship. |
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Definition
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Term
| If there is a postive relationship between two variables we say as one varible ___ the other varible ___ |
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Definition
increase the other varible inc
or
Dec the decrease |
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Term
| If there is a negative relationship between the two varibles we say that if one varible ___ the other ____ |
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Definition
| Inc the dec or dec the inc |
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Term
| If the line on the graph is verticle or horizontal there is ____ relationship |
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Definition
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Term
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Definition
| "other things equal" or we are going to analyze the relationship between two varibles. ( all other things are considered constant and unchanging) |
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Term
| What is the scientific method |
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Definition
1. Series of Steps
2. to try to explain
3. something we observe
4. so that we can develop cause & effect statements
5. that we use to predict what will happen if we change this or that( cause &effect statements)
6. That we use to explain things we observe that we could not explain before |
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Term
| What are the 5 STEPS of the scientific Method |
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Definition
1. Hypothesis
2. Hypothesis testing
3. theory
4. laws and principals
5. Models |
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Term
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Definition
| After careful observation of some observable phenomena, a cause and effect statement is proposed to explain the cause behind some observed effect. |
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Term
| Define #2 Hypothesis Testing |
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Definition
| Experiments are conducted which hold everything else constant (ceteris paribus) except the cause and effect in question and yeild obserable results that wil either support or reject the hypothesis. If we cant come-up with a valid experiment to test the hypothesis then we must go back to step 1 and come-up with a new hypothesis |
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Term
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Definition
| The Points are the values of the varibles and we say this is a positve or direct relationship |
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Term
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Definition
| This is a positve or direct relationship the points represent the values of the varabile pair |
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Term
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Definition
| The Laws of Supply and Demand |
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Term
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Definition
| there is a positive relationship between possible prices and possible quantities supplied, where an increase in possible price causes an increase in possible quantity supplied |
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Term
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Definition
| there is a negative relationship between possible prices and possible quantities demanded, where an increase in possible price causes a decrease in possible quantity demanded. |
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Term
| the scientific method does not tell us whether a hypothesis, theory, law, or principle is |
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Definition
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Term
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Definition
| “looking at the individual parts” (such as individual consumers, individual business firms, and individual industries).The study of how households and businesses interact in markets and make choices, and how the government attempts to influence these choices |
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Term
MACROECONOMICS...
(this course) |
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Definition
| looking at the whole, or the sum of the parts” (such as whether the entire economy is getting bigger or getting smaller). The study of the economy as a whole, including topics such as inflation, unemployment, and economic growth. Macroeconomics also concerns itself with studying, investigating and trying to understand the business cycle: Alternating periods of economic expansion and economic recession. |
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Term
| THE “FOUNDATION" OF ECONOMICS |
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Definition
| IS THAT WE ASSUME PEOPLE HAVE AN UNLIMITED APPETITE(WANTS) FOR THINGS THAT THEY WANT... |
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Term
| EVERYONE HAS “LIMITED” OR “SCARCE” RESOURCES AVAILABLE TO GET THOSE WANTS |
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Definition
| satisfy their “wants” within the constraint of having a limited budget |
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Term
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Definition
| is an organized system that produces goods and services |
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Term
| We use economic resources to produce goods (like a car) and services (like a massage). How many resources (inputs, or factors of production) are there? |
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Definition
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Term
| What are the names of the resources (factors of prodution)(inputs) |
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Definition
Property Resources A)Land (also called natural resource) (B)Captial (tractor and things that we use to produce)
Human Resources (C) Labor (D) Entrarepreneuarail ability |
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Term
| The more captial we have the more we can |
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Definition
|
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Term
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Definition
| those human beings that have a special and rare ability to successfully bring together land, capital & labor to produce goods and services PROFITABLY |
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Term
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Definition
1. limited resources
2. no chage in the resources
3. no change in technology
4. full employment
5. productive effeniency |
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Term
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Definition
| at some point in time there is always a limited amount of resources (land, capital, labor & entrepreneurial abilty) |
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Term
| 2. no change in resources |
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Definition
| at some point in time the amount of land, capital, labor, & entreprenaurial abilty is fixed or constant or cannot change. |
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Term
| 3. no change in technology |
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Definition
| Technology is anything that allows us to produce more than before without changing the amount of resources |
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Term
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Definition
| using all the limited resources available. |
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Term
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Definition
| 1. we are getting the most we can out of our resources. 2. we are using the minium amount of resources required. |
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Term
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Definition
| amount of teaching or training . |
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Term
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Definition
| does not help to produce something else. ( is not capital) |
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Term
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Definition
| is a good that helps us to produce something else (a capital good is capital) |
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Term
| If all things are in effect 1. limited resources 2. no change in resources 3. no change in technology 4. full employment 5. productive effeciency it is said that we must ____ one thing in order to have more of another thing. |
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Definition
|
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Term
|
Definition
| Production Possibilities Curve |
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Term
| Prodution possiblities curve |
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Definition
| maxium combintions when all assumptions are in effect. |
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Term
| Points anywhere “outside” the production possibilities curve (upside) |
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Definition
| such as point W, are unattainable (because all resources were already efficiently being used to get to points on the curve, we can’t get to points anywhere outside the curve without more resources or better technology). |
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Term
| Points anywhere “inside” the production possibilities curve (Downside) |
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Definition
are attainable
but
we either do not have full employment or we do not have productive efficiency or we have less resources or we have worse technology. |
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Term
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Definition
| This shows economic growth. A' is called A prime |
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Term
| Production possibilities curve of frontier |
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Definition
| means border for the maxium production when all assumtions are in effect |
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Term
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Definition
Money flow is perfectly circular
The green line of money does not change |
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Term
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Definition
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Term
| Housholds- sell ___ and buy____ |
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Definition
| Resources and buy goods and services(products) |
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Term
| Business (FIRMS) - buy_____ and sell____ |
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Definition
| resources from the households and sell the goods and products to the households |
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Term
|
Definition
1. land
2. capital
3. labor
4. entreprenaulrial ability |
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Term
|
Definition
| goods and services(products) |
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Term
Household income for Land is ____
capital____
labor ______
entreprenaurial ability ______ |
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Definition
Land -rent
capital-interes
labor-wages
Entreprenuarial abilityy- profit |
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Term
| Business income from goods and services (products) is |
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Definition
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Term
| When a household buys goods and service it is called their |
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Definition
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Term
| When a business buys resources it is called their |
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Definition
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Term
| Resources from the household to the buyers go through the ______ market which sets the ______ |
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Definition
| RESOURCE market which sets the PRICE |
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Term
| When a household buys Goods and services from a business it goes through the _____ market which sets the ____ |
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Definition
| PRODUCT market which sets the price |
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Term
| Resources are not perfectly circular due to |
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Definition
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Term
|
Definition
Government provide goods and services to the business and household in the form of roads, millitary protection and transfer payments.
The Goods and service that flow FROM the government do not go through the resource or product markets.
Businesses and households pay taxes.
Goverment buys resourses and products from the markets. |
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Term
| phases of the business cycle |
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Definition
| peak, recession, through,expansion, peak, recession and through expansion, peak |
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Term
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Definition
|
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Term
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Definition
| is the period of time between A PEAK and A TROUGH during which the economy is shrinking in size |
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Term
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Definition
|
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Term
|
Definition
| is the period of time between A TROUGH and A PEAK during which the economy is growing in size |
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Term
| money goes into the goverment via taxes from households and businesses and then it goes out via |
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Definition
1.Government spending for goods, services, and resources
2. transfer payments (SS, medicaid) |
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Term
|
Definition
|
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Term
|
Definition
| If, after many repetitions of Step (2) with different experiments, the results of the new experiments consistently support the hypothesis and the hypothesis is not rejected, then the hypothesis is now referred to as a theory. |
|
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Term
| define step 4: Laws & Principles |
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Definition
| If, after continued repetition of Step (2) with even more different experiments, the hypothesis still remains un-rejected decade after decade after decade, the hypothesis is now referred to as a law or principle. |
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Term
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Definition
| Combinations of 2 or more laws & principles that allow us to see interrelationships and cause & effect relationships which would otherwise not be so obvious without combining the laws & principles. |
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Term
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Definition
|
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Term
|
Definition
| The period of a business cycle during which the economy’s total output is decreasing (the economy shrinks in size from a peak to a trough) |
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Term
|
Definition
| The period of a business cycle during which the economy’s total output is increasing (the economy expands in size from a trough to a peak). |
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Term
|
Definition
Recovery- from the through to the point of where the last peak was
Prosperity- piont from where the last peak was to the peak of the current expansion |
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Term
| Gross domestic product (GDP) is defined |
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Definition
| as the market value ($) of all final goods and services produced within a country during a period of time. |
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Term
|
Definition
| we mean GDP is calculated over a year or quarter (i.e. 3 months |
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Term
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Definition
| we mean we count only goods and services purchased by a final user (we don’t count intermediate goods). |
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Term
| intermediate good or service |
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Definition
is a good or service that is used as an input into the production of another good or service.
(Capital) |
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Term
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Definition
| we mean GDP is reported as a dollar amount, (even though GDP is supposed to be a measure total production). |
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Term
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Definition
| is the ability to produce a larger total output |
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Term
|
Definition
| itermediate good,Real capital, Physical capital |
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Term
| economic growth is caused by |
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Definition
| increase in resources, better resources, or introdution of technology |
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Term
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Definition
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