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Macro Test 1
Chp.1-chp.4
42
Economics
Undergraduate 3
09/20/2008

Additional Economics Flashcards

 


 

Cards

Term
opportunity costs
Definition
to obtain more of one thing the society forgoes the oppirtunity of getting the next best thing.(Oprah)
Term
marginal means
Definition
Extra, additonal, chg in
Term
macroeconomics
Definition
study of the economy as a whole or basic subdivisons or aggregates a( gov't business sectors and household)
Term
economizing problem
Definition
the need to make choices because economic wants exceed economic need
Term
budget line (Budget constraint)
Definition
range of products available to the indivdual consumer
Term
economic resources
Definition

all natural, human, and manufactured resources that go into the production of goods and services

Term
Economic sources
Definition

Land

Labor

Captial

Entrpreneurial ability

Term
land
Definition

includes all nature resources ( the gift og nature)  production process aravbel forests, mineral and oil desposits etc...

Term
labor
Definition
constists of the physical and mental talents of the indivdual used in producing goods and services
Term
capital
Definition
all manufactured aids used in producing consumer goods and services
Term
entreprneurial ability
Definition
special human resource , they are risk bearers,make stragetic business decisions etc...
Term
law of increasing opportunity costs
Definition
" as the production of a particular good increases the opportunity cost of the producing the product and addtional unit rises
Term
optimal output
Definition
marginal benefit= marginal cost
Term

command system

(socialism/communism)

Definition
the government owns the all property and resources andmake all economical deciscion for a specific country(russia)
Term

market system

(capitalism)

Definition

their is privat ownership of resources and the indivdual and the businesses achieve the economic goal in a society

(US)

Term
competition
Definition

freedom of sellers to enter and leave a market

two buyers/sellers acting independently in a particular product or resource market

Term
market
Definition
institiution that brings buyers and sellers into contact
Term
invisible hand
Definition

Adam Smith( the wealth of nations)

 

Term
Demand
Definition
a curve that shows the various amounts of a product that consumers are willing and able to pruchase at a specific time ( down to the right)
Term

determinants of demand

Definition

chg in buyer taste

chg in the number of buyers

chg in income

chg in the prices of related goods

chg in consumer exceptions

Term
sub. goods
Definition

a good that can be in place of another good

Term
complementary good
Definition

a good that is used together with another good

( chips and salsa)

Term
normal goods
Definition

products whose demand varies directly with money income

(superior goods)

Term
Supply
Definition

shows the various amounts of a product that producers are willing and able make available

(increase upward from the left to right)

Term
determinants of supply
Definition

chg in resource prices

chg in tech

chg in taxes and subsidies

chg in prices of other goods

chg in the producer exception

chg in number of suppliers

Term
chg. in quantity supplied
Definition
movement of from one point to another on fixed supply fixed supply curve
Term
equlibrium quantity
Definition
the quantity demanded and quantity supplied at the equilibrium price in com. market
Term
productive efficiency
Definition
the production of any particular good in the least costly way
Term
allocative efficiency
Definition
particular mix of goods and services most highly valued by a society
Term
black market
Definition
Term
price floor
Definition
min. price fixed by the government a price at or above the price floor is legal a price below it is not legal
Term
surplus
Definition
excess in supply
Term

shortage

Definition
excess in demand
Term
price ceiling
Definition
max. legal price a seller may charge for a product or service
Term
sole proprietorship
Definition

business owned and operated by one person

( high libablity)

Term
partnership
Definition
forms of business organization is a natural outgrowth of sole prop. two or more indivduals agree to own and operate the business together
Term
corporation
Definition

a legal creation that can acquire resources,own assets, produce and sell products incur debts, extend credit

Term
public goods
Definition

nonrivalry and nonexcudability

certain goods and services ( national defense and street lights)

Term
free-rider
Definition

people benefit from public good w/o contributing to costs

Term
monopoly
Definition

single seller

Term
negative externality
Definition

(enviromental pollution)

(spillover costs)

 

Term
positive externality
Definition

uncompensated spillov third parties accuring or community at large

(wireless internet/education)

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