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32 Cards in this Set
- Front
- Back
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Ceteris Paribus
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All things being equal
All things being constant |
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Macro Economics Def:
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Concerned with Eco as a whole or with basics subdivision or aggregate. (ex: unemployement, deficet)
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Micro Economics Def:
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Is concerned with specifics eco units and with detail consideration of these units
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Normative
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Deals with what ought to be
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Positive economics
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deals with what is
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2 Economic Fallacies
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- Fallacy of composition
- Post hoc fallacy |
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4 Factors of production AKA RESOURCES
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Land- (factor= rent)
Capital- (factor= interest) Labor- (factor= wages) Entreprenuership- (factor= profits...Rarest of all) |
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Production possibility curve
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the increasing production of one good reduces production of the other good
TRADE- OFFS (spending or keeping money) |
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Opportunity Costs
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Measures what is giving up to produce or consume another good.
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Economic profits AKA PURE PROFITS
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Any profits that are increased normal profits
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Mixed economy
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is an economy that has a mix of economic systems
(ex:private-owned and state-owned enterprises) |
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Bartering
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a type of trade in which goods or services are exchanged for other goods and/or services.
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Circular flow on income model
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shows the relationship between money income and spending for the economy as a whole
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Market Def:
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A facility that brings buyer and seller together
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Quantity Demand:
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Change in price along the same demand curve
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2 Kinds of Inflation
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Inflation Demand Side
Inflation Supply Side |
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Inflation demand side is AKA
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DEMAND PULL INFLATION
(too much $ chasing too few goods) |
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Inflation supply side
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COST PUSH INFLATION
(wage push, profit push, supply side shock) |
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3 Kinds of unemployement
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Fictional
Structural cyclical (bad one) |
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Bussiness Cycle
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The Peak
The Recession The Trough The Recovery |
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The Recession
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Is 2 or more negative quartes of GDP growth.
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Consumer Sovereingnty
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Consumers are responsible for how succesful the bussines is going.
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Okun's Law
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Measures economic causes of unemployement. (for every 1% point the actual unemployement rate is above the natural rate creates the 5% GDP GAP)
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Externalities
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They are also known as SPILLOVERS
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Public Goods
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consumption of the good by one individual does not reduce the amount of the good available for consumption by others; and no one can be effectively excluded from using that good
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Free Rider Goods
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are people who consume more than their fair share of a resource
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GDP Def:
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The market value of goods and services produced by labor and property in the US
Total GDP Final goods & Services "YEAR" the year the good's were made in. |
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Disposable Personal Income
(DPI) |
Personal Income
- Personal Taxes |
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Value Added
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* another way of measuring GDP
* Looks @ its good stage of production |
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2 methods of GDP is:
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Value Added & Final Sales
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Real GDP
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Takes into account inflation(or price changes) that occur in an economy.
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3 Price of related goods
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- complements
- substitutes - independant goods |
