Econ Exam 01 Dom's Misc Flash Cards

Front 1

Normative Ambiguity
Activism
Pro-Prosperity

Back 1

MARK 7:7
Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you
(Dr. G - assertiveness training to get out there and get it done)

Front 2

Normative Ambiguity
Activism
Anti-Prosperity

Back 2

MARK 5:5
Blessed are the meek: for they shall inherit the earth.

Front 3

Iron Law of Wages (MARX)
is the same as...

Back 3

Stationary State Doctrine (Ricardo)
is the same as...

Front 4

First said that gold is not wealth

Back 4

David Hume

Front 5

Quantity Theory of Money

Back 5

Hume-Fisher Equation
MV=PQ

Front 6

Who claimed:
Wealth = Goods + Services

Back 6

David Hume

Front 7

Invisible Hand Doctrine

Back 7

Adam Smith

Front 8

Theory of Absolute Advantage

Back 8

Adam Smith
Everyone do what you are best at.

Front 9

What single thing made Adam Smith the Father of Economics?

Back 9

Water-Diamond Paradox

Front 10

Utility Theory

Back 10

Jeremy Bentham

Front 11

What mistakenly became the rationalization of Imperialism?

Back 11

Ricardo's "Wage Fund Doctrine"
(Pie chart from board)

Front 12

Weakness in Deductive Logic

Back 12

1. Applicability of assumptions
2. The more assumptions the less useful

Front 13

Weakness in Inductive Logic

Back 13

1. Fallacy of composition or assuming what's true for the part is true for the whole

Front 14

What is Normative Ambiguity?

Back 14

Norm = a standard
Ambi = greek for 2
DEF: 2 Tenets (maxim or principals) of social behavior that suggest counter-directional outcomes when applied arbitrarily to the same set of circumstances.

Front 15

Where did Dr. G use the word gestalt and what does it mean?

Back 15

Gestalt = German The whole is greater then the sum of its parts
He used this to describe Macroeconomics

Front 16

Total Rent = ?

Back 16

Economic Rent + Quasi Rent

Quasi Rent = premium over E.Rent

Front 17

Analects

Back 17

Confucius kept asking questions. The questions were always the same but the answers changed over time.

Front 18

Comment on Mencius and economic expansion

Back 18

Mencius discovered that economic expansion needed to happen within by managing the internal budget; NOT EXTERNAL EXPANSION

Front 19

Who first developed the idea of "division of labor"

Back 19

Mencius

Front 20

Syllogism

Back 20

Aristotle Developed
Set Theory
Internally consistant hypothesis
DEDUCTIVE

Front 21

NATURAL LAW #1

Back 21

Hedonism (from Aristotle)
All men seek pleasure and avoid pain; "creature comforts"

Front 22

Mercantilists

Back 22

Gold = Wealth
Gold is limited.
Wealth is limited.

DEDUCTIVE LOGIC with fallacy of composition.

Front 23

Quote Keynes on why money is valuable

Back 23

Money is not valuable because it is backed by gold, but rather, gold is valuable because it is backed by money.

Front 24

2 Most Important things about HUME

Back 24

1. Hume-Fisher Equation
2. Told Smith that GOLD IS NOT WEALTH

Front 25

NATURAL LAW - SMITH

Back 25

Employ capital to greatest value; Try to get rich and you will actually help society.
BUILD A BETTER MOUSETRAP

Front 26

Robinson Crusoe

Back 26

"and along came Friday"

What happens when you change the number of people in society.
Specialization of labor.
Amazing thought process.

Front 27

NATURAL LAW - Quesnay et.al.

Back 27

Wealth ultimatly comes from the soil

Front 28

Malthus on FOOD and POPULATION

Back 28

Eventually the rate of increase of food will increase at an arithmatic progression but population will increase at a geometric progression.

Front 29

Who was the father of cost benefit analysis?

Back 29

Malthus

Front 30

Who were John Stuart Mill's mentors?

Back 30

James Mill
Jeremy Bentham

Front 31

Who is the Father of Utility Theory?

Back 31

John Mill

Utility Theory:

Front 32

Who created the concept of DEMAND?

Back 32

John Mill

Front 33

Who was the greatest student of Hegel

Back 33

Karl Marx

Front 34

2 bad assumptions by MARX

Back 34

1. Everything that was going to be invented already was
2. Never made his SYNTHESIS a new THESIS as HEGEL (and Plato) suggest.

Front 35

Who contributed MARGINAL DISUTILITY?

Back 35

Carl Menger

Front 36

Marginal Utility Theory - Name 3 people that contributed to its development

Back 36

Carl Menger (verbal)
William Jevons (math)
Leon Walras (both)

Front 37

Who invented the LAW OF SUPPLY AND DEMAND?

Back 37

Leon Walrus

Front 38

Who contributed ELASTICITY THEORY?

Back 38

Alfred Marshall

Front 39

Consumer Surplus

Back 39

Utility received but not paid for

Front 40

Marshall's Profit Theory

Back 40

Theory of the Firm
How does a company maximize profits

Front 41

Who came up with INDIFFERENCE CURVES?

Back 41

Edgeworth
Tells where you want to be on the curve (based on taste - liver and pork bellies)

Front 42

Who was the greatest student of MARX?

Back 42

John Maynard Keynes

Front 43

What theory developed by Keynes offered a solution to the depression?

Back 43

The General Theory

Keynes claimed that MARX showed him the way

Front 44

Who was the worlds first demographer?

Back 44

Malthus

Front 45

NATURAL LAW - WALRUS

Back 45

The law of supply and demand

Front 46

Quotient Rule

Back 46

if y=u/v

y'=(u'v-uv')/v^2

Front 47

Marshallian Cross
Partial Equilibrium

Back 47

y axis = P; x axis = Q
S & D curves meet at Q=QsubE and P=PsubE

Front 48

Keynesian Cross
General Equilibrium

Back 48

y axis = C,I,G; x axis = Y
C+I+G and Y curves meet at Y=YsubE

Front 49

Aggregate Supply and Aggregate Demand

Back 49

Y & Z respectivly

Front 50

Cliometrics

Back 50

use of stasticical observations and mathematical modeling to measure economic causes and consequences

Front 51

DEMAND
D =
QsubD =

Back 51

D = f(U)
QsubD = f(P)

Front 52

SUPPLY
S =
QsubS =

Back 52

S = f(C)
QsubS = f(P)

Front 53

Q v. q

Back 53

Q = entire industry or market

q = a single firm

Front 54

P is an E

Back 54

Price is an equilibrium

Front 55

PsubE conditions

Back 55

QsubS = QsubD
QsubE or the quantity at equilibrium is known to "clear the market"

Front 56

Elasticity of Supply
v.
Elasticity of Demand

Back 56

Responsiveness of consumer to price change
v.
responsiveness of seller to price change

Front 57

Define TU

Back 57

Total Utility: Total satisfaction from all units consumed

NOTE: if MU is neg. use TDU (total disutility)

Front 58

Ax =

where x = C (TC), FC, VC, R

Back 58

Average x (Ax) = x/q
q = # units produced
Ex. AC = TC/q; AFC = FC/q

Front 59

PIE = ?

Back 59

AKA profits
PIE = TR - TC

NOTE: at max when MR=MC

Front 60

Y =

Back 60

Y (National Income) = Aggregate Demand

Y = C(consumption) + I(investment) + G(gov. exp.)

Front 61

C =

Back 61

C = f(Y)

Front 62

I =

Back 62

I = f(r)

r = interest rate

Front 63

T =

Back 63

T(gov. receipts) = TsubX(direct/indirect tax) + TsubP(unilateral gov. transfer)

Front 64

Y =

Back 64

Y(disposable personal income) = C(consumption) + S(savings)

Front 65

S =
(for disposable income)

Back 65

S = f(Y)
&
S = I(investment) + H(hoarding)

Front 66

APC =

Back 66

APC(avg. propensity to consume) =

C/Y

Front 67

APS =

Back 67

APS(avg. propensity to save) =

S/Y

Front 68

MPC + MPS =

Back 68

MPC + MPS = 1

Front 69

k =

Back 69

k = 1/MPS

Front 70

N =
NsubF =
NsubU =

Back 70

Employment Level
Full Employment
Unemployment

Front 71

YsubE =
NsubE =
YsubF =

Back 71

Equil. level of Nat. Income
Eq. level of Employment
Full Employment Income

Front 72

Wsubm =
W/P =

Back 72

Wsubm = Absolute or money wages (amts. paid)
W/P = relative or real wages (buying power)

Front 73

Money Supply =

Back 73

M = coin + currency + credit money

Front 74

L =

Back 74

L(demand for money or liq. pref.) =
Lsubt(trx. demand) + Lsuba(asset demand)

Front 75

DD =
TD =

Back 75

DD = Demand Deposit (checking)
TD = Time Deposit (savings)

Front 76

Marshall Quote on Economic Analysis

Back 76

"Economics is not a body of concrete truths, but an engine for the discovery of concrete truths"