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35 Cards in this Set

  • Front
  • Back
Gary Becker
Human Capital

Discrimination is an economic decision
Alfred Marshall
Father Of neoclassical economics


Ceteris Paribus -All else being equal
St Thomas Aquinas
usury is the most questionable of trade practices
Joseph Shrumpeter
Business Cycle Theory

Capitalism will fall to its own success
Jeremy Bentham
Father of Utility theory
--Greatest Happiness principle
Adam Smith
Theory of Moral Sentiments

Credited with notion of rational self interest
Karl Marx
workers would rise up and overthrow capitalism
Thomas Malthus
population will rise faster than the food supply
high GDP
***Should Raise interest Rates

Decrease interest Rates would increase inflation
David Ricardo
law of comparative advantage
-Mutually beneficial exchange is possible whenever relative production costs differ prior to trade.
Conspicuous Consumption
-term used to describe the lavish spending on goods and services that are acquired mainly for the purpose of displaying income or wealth
government involvement in the free enterprise is....
intended to protect the market system from abuses
Natural rate of unemployment
Frictional + structural unemployment
scholar in latin means?
taxes have same effect on change in supply as...
increase in cost of inputs
positive growth in GDP =
2.5 - 5.5 % increase in GDP
Brettenwoods, NH after WW2...
All listened to keynes

Created World Bank + international Monetary Fund
merger of government + Corporations
John Maynard Keynes - Solution to depression
General Theory of Employment, Interest and money.
- Government puts people to work
- debt in short run, profit in long

Starts "engine" of Capitalism
Misery Index
Unemployment rate + inflation rate = Misery Index
John Maynard Keynes - the economic consequences of the peace
-Social, economic and political consequences

-prophesized WW2 + Hitler

-British Peace Conference mistakes
John Maynard Keynes was..
_Father of Macroeconomics

- More Government in economy

- Led to golden years
Federal Reserve
-Keeps inflation in check
--stables prices
--makes money worth something
(value + wealth are a concept)
-"Sound Money"
-"Modest" tax rates
-minimal government spending
Social Security
-Generation income transfer program
-Designed in 1935
--had to be 62 1/2
Mikhail Gorbachev
Gaisnost = openess
Perestroika = restructuring
Federal Open Market (FOMC)
-12 presidents
-7 governer's
-meets every 6 weeks
- meet 8 times a year

Ben Bernanky is Chairman
4 Measures of money
m1= cash, atm, chcek
m2= m1 + savings up to 100,000, credit
m3= M1 + M2 + savings over 100,000
L = All money ( M1+M2+m3)
Federal Reserve
-created 1913
-consists of 12 banks
-- 25 branch offices
Quantity Equation of Exchange
Velocity- CONSTANT
Transactions_ CONSTANT
Rising of Unemployment + rising of Inflation
John Kenneth Galbraith
wrote the "The Affluent Society"
- Could Satisfy citizens needs if outputs were distributed equally
Friedrich August Von Hayek
wrote the "Road to Serfdom"
---discredited himself

Thought market would fix itself
Milton Friedman
-demonstrated a close correlation between changes in money supply on the one hand and inflation on the other
-free market
-Unconcerned with fairness
-individualism, freedom, markets
for every 1% increase in unemployment
UP 4% prison incarcerations
UP 1% Suicide
UP 5.7% Homicide
UP 7.8% Child abuse