Shared Flashcard Set

Details

Macroeconomics 1
Intro, Chapter 1, and Chapter2
36
Economics
Undergraduate 4
09/08/2011

Additional Economics Flashcards

 


 

Cards

Term
Scarcity
Definition
the limited nature of society's resources
Term
economics
Definition
the study of how society manages its scarce resources
Term
Efficiency
Definition
the property of society getting the most it can from its scarce resources
Term
equity
Definition
the property of distributing economic prosperity fairly among the members of society
Term
The ten principles of economics
Definition
1. people face tradeoffs
2. the cost of something is what you give up to get it
3. rational people think at the margin
4. people respond to incentives
5. trade can make everyone better off
6. markets are usually a good way to organize economic activity
7. governments can sometimes improve market outcomes
8. a country's standard of living depends on its ability to produce goods and services
9. prices rise when the government prints too much money
10. society faces a short-run tradeoff between inflation and unemployment
Term
People face _______.
Definition
tradeoffs
Term
The cost of something is ________ you _______ up to ______ it.
Definition
what, give, get
Term
_________ people think at the ________.
Definition
rational, margin
Term
People ________ to ___________.
Definition
respond, incentives
Term
__________ can make everyone _________ off.
Definition
Trade, better
Term
Markets are usually a _________ way to _______ economic activity.
Definition
good, organize
Term
Governments can sometimes ________ market ________.
Definition
improve, outcomes
Term
A countries _________ of living depends on its ability to _________ goods and _______.
Definition
standard, produce, services
Term
Prices ________ when the government _______ too much ________.
Definition
rise, prints, money
Term
Society faces short-run ________ between _________ and ___________.
Definition
tradeoffs, inflation, unemployment
Term
Philips curve
Definition
a curve that shows the short-run tradeoff between inflation and unemployment
Term
inflation
Definition
an increase in the overall level of prices in the economy
Term
productivity
Definition
the amount of goods and services produced from each hour of a worker's time
Term
market failure
Definition
a situation in which a market left on its own fails to allocate resources efficiently
Term
externality
Definition
the impact of one person's actions on the well-being of a bystander
Term
market power
Definition
the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices
Term
market economy
Definition
an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services
Term
opportunity cost
Definition
whatever must be given up to obtain some item
Term
marginal changes
Definition
small incremental adjustments to a plan of action
Term
circular-flow diagram
Definition
a visual model of the economy that shows how dollars flow through markets among households and firms
Term
production possibilities frontier
Definition
a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology
Term
microeconomics
Definition
the study of how households and firms make decisions and how they interact in markets
Term
macroeconomics
Definition
the study of economy-wide phenomena, including inflation, unemployment, and economic growth
Term
positive statments
Definition
claims that attempt to describe the world as it is
Term
normative statements
Definition
claims that attempt to prescribe how the world should be
Term
Economists study
Definition
how people make decisions, how they interact with one another, analyze forces and trends
Term
Economists study
Definition
how people make decisions, how they interact with one another, analyze forces and trends
Term
In relation to pie how can efficiency and equity be described
Definition
efficiency refers to the size of the pie, equity to how the pie is divided
Term
The three principles concerning economic interactions.
Definition
1. trade can make everyone better off
2. markets are usually a good way to organize economic activity
3. governments can sometimes improve market outcomes
Term
What are the three economic principles that concern the workings of the economy as a whole?
Definition
1. a country's standard of living depends on its ability to produce goods and services
2. prices rise when the government prints too much money
3. society faces a short-run tradeoff between inflation and unemployment
Term
what are the four economic principles that reflect how people make decisions?
Definition
1. people face tradeoffs
2. the cost of something is what you give up to get it
3. rational people think at the margin
4. people respond to incentives
Supporting users have an ad free experience!