Econ Final

Front 1

why does economics exist?

Back 1

Scarcity

Front 2

What is scarcity?

Back 2

a situation where resources needed to satisfy human want are insufficient

Front 3

the resources in the united states...

Back 3

are not sufficient to meet the desires of its citizens

Front 4

Is the united states a prosperous nations?

Back 4

yes

Front 5

If the country did not face opportunity cost that would mean ..

Back 5

the country had unlimited resources

Front 6

what are externalities?

Back 6

a cost imposed on innocent third party
example: pollution
-It is also an example of market failure

Front 7

the production possibilities curve demonstrates how society responds to the for_____question.

Back 7

WHAT

Front 8

Words used in econ have the smae meaning as they do in our everyday conversation.

True or False

Back 8

FALSE

Front 9

In order to produce a combination of goods and services beyond its current production possibilities curve technology would need to ____

Back 9

improve

Front 10

additional factors of production can result in..

Back 10

economic growth

Front 11

The best answer the the _____ to produce question for an economy is the method of production that uses the most labor

Back 11

WHAT

Front 12

The doctrine of "leave it alone"of nonintervention by government in the market mechanism

Back 12

Laissez Faire

Front 13

Adam Smith encouraged a policy of "laissez faire " because he believed that the market mechanism

Back 13

provided society with the best answer to the WHAT, HOW, and FOR WHOM questions.

Front 14

what are income transfers?

Back 14

payments to individuals for which no current goods or services are exchanged
Example: Social Security, welfare, unemployment benefits

Front 15

a regressive tax system is one in tax rates ____and income ____

Back 15

falls, rises

Front 16

_____ are the difference between the social and private costs (or benefits) of a market activity

Back 16

Externalities

Front 17

The study of individual economic behavior in the economy, of the components of the larger economy

Back 17

Microeconomics

Front 18

The study of aggregate economic behavior of the economy as a whole

Back 18

Macroeconomics

Front 19

the assumption that nothing else changes

Back 19

ceteris paribus

Front 20

What is the formula for Per capita GDP

Back 20

Total GDP / Total Population

Front 21

The knowledge and skill expressed by human work force

Back 21

human capital

Front 22

choices must be made and there are not enough goods and services because of

Back 22

Scarcity

Front 23

opportunity cost is

Back 23

opportunity lost

Front 24

economics growth is

Back 24

an outward expansion of the production possibilities curve

Front 25

the action of making or manufacturing from components or raw materials, or the process of being so manufactured

Back 25

production

Front 26

what is an example of a negative externality?

Back 26

your class mate leaving banana peel on the ground

Front 27

the inflation-adjusted value of GDP; the value of output measured in constant prices

Back 27

real GDP

Front 28

The totale value of goods and services produced within a nation's borders; measured in current prices

Back 28

nominal GDP

Front 29

Real GDP mesures changes in

Back 29

production only

Front 30

What causes an increase in real GDP because of increased production possibilities

Back 30

Economic growth

Front 31

What is the most important expenditure in expanding a country's production possibilities

Back 31

investment good

Front 32

GDP is equal to the sum of

Back 32

consumption, investment, net exports, and government services

Front 33

any place where goods are bought and sold

Back 33

the market

Front 34

the markets for the factors of production, namely land, labor, capital, and entrepreneurship

Back 34

factor markets

Front 35

a table showing the quantities of good a consumer is willing and able to buy at alternative prices in a given time period

Back 35

a demand schedule

Front 36

If you lose your job your demand curve will shift to the..

Back 36

left

Front 37

the amount of satisfaction obtained from entire consumption of a product

Back 37

total utility

Front 38

the change in total utility obtained by consuming one additional unit of good or service consumed

Back 38

marginal utility

Front 39

with greater consumption, total utility

Back 39

increases as long as marginal utility increase

Front 40

the percentage change in quantity demanded divided by the percentage change in price upper limit imposed on the price of a good

Back 40

price elasticity of demand

Front 41

upper limit imposed on the price of a good

Back 41

price ceiling

Front 42

lower limit imposed on the price of a good

Back 42

price floor

Front 43

a technological relationship expressing the maximum quantity of a good attainable from different combinations of factor inputs

Back 43

production function

Front 44

which of the following would cause a firm's production function to shift upward?

Back 44

increased investment in capital

Front 45

The increase in total cost associated with a one unit increase in production

Back 45

marginal cost

Front 46

the market value of all resources used to produce a good or service

Back 46

total cost

Front 47

cost of production that do not change when the rate of output is altered

Back 47

fixed cost

Front 48

total cost divided by the quantity produced in a given time period

Back 48

average total cost

Front 49

total cost will always increase as long as

Back 49

output increases

Front 50

the short run is characterized by the existence of ___costs

Back 50

fixed

Front 51

competitive market is..

Back 51

where no buyers or sellers have market power

Front 52

a period of time long enough for all inputs to be varied

Back 52

long run

Front 53

in a competitive market where firms are incurring losses, which of the following should be expected as the market moves to long-run equilibrium, ceteris paribus?

Back 53

a higher price and fewer firms

Front 54

what equal what in long-run competitive market?

Back 54

price = minimum average total cost

Front 55

a fee imposed on polluters based on the quantity of pollution

Back 55

emission charge

Front 56

emission charges can cause an upward shift of

Back 56

polluting firm's MC curve and polluting firm's ATC curve

(it can also cause a reduction in the polluting firm's output)

Front 57

which market failure is addressed if local government forbids smoking in restaurants?

Back 57

externalities

Front 58

which market failure is the free-rider dilemma associated with?

Back 58

public goods

Front 59

a good or service whose consumption by one person does not exclude consumptions by others

Back 59

public good

Front 60

the ability to alter the market price of a good or service

Back 60

market power

Front 61

the cost of environmental protection can be measured by the ______ of resources used to protect the environment

Back 61

opportunity cost

Front 62

alternating period of economic growth and contraction and resulting from recurrent shift of the aggregate supply and demand curve

Back 62

business cycle

Front 63

unemployment caused by mismatched between the skills (or location) of job seekers and the requirements (or location) of available jobs.

Back 63

structural unemployment

Front 64

what is the lowest point on the business cycle?

Back 64

trough

Front 65

what is the highest point on the business cycle?

Back 65

peak

Front 66

what alternated through the business cycle?

Back 66

recession and expansion