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41 Cards in this Set
- Front
- Back
- 3rd side (hint)
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inadequate production or less the expectation |
under production |
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It will result to shortage that may lead to disequilibrium of the market |
under production |
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Labor |
wages/capital - exertions of skills |
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Land |
Rent |
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meets the demand, and meets their consumer |
Production |
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objective analysis of the economic study. This includes investigating of what happened VS. what's happening, allowing economist to predict what will happen in the future. |
Positive Economics |
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P=QD |
unitary elastic |
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Basic economic activities |
Consumption Production Distribution Growth over time |
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Capital |
Interest - Man - made resources |
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Demand for good or service remains relatively unchanged when the price moves up or down. |
Inelastic |
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Economic activities of individuals |
Microeconomics |
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economics decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses. |
Market Economy System |
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economic measure of how sensitive an economic factor is to another. |
Elasticity |
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economics based on facts |
Positive economics |
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A system that combines aspects of both capitalism and socialism |
Mixed economic system |
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a term that describes a situation in which a change in one variable results in a equally proportional change in another variable. |
Unitary elastic |
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Allocation of resources |
Production |
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also known as economic equality which emphasizes the fairness in economics. |
Equity |
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An economic system in which traditions, customs and beliefs shape the goods and services economy produces, as well as the rule and manner of their distribution. |
Traditional Economic system |
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(machinery, equipment, factories, buildings etc) are produced just like any other consumer goods such as cars, televisions, and food items. |
Capital Goods |
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is a simplified exposition of money and physical or real flows through the economy which serves as a basis for macroeconomic analysis |
Circular Flow Model |
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refer to nominal values, such as nominal prices, earnings, wags, or interest rates. |
Nominal |
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are always values in comparison, or relatives, to other related economic variables. |
Real values |
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are facts or relationships which can be proven or disproven |
Positive economic |
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is someone's opinion or value judgement about an economic issue. |
normative economic |
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the value of broker's services is included in GDP because they perform a service. |
Buying and Selling securitires |
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are payments for which no productive services are concurrently provided in exchange. |
Government transfer payments |
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this is private transfer of funds from one person to another and these are jot included in GDP. |
Private Transfer Payments |
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is included in the GDP in the year they were produced |
Transfer of Second-hand Goods |
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what are the three ways to measure GDP? |
The expenditure approach The income approach The industrial approach |
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it measures GDP by adding all the spending for final goods and services during a period of one year |
The Expenditure Approach |
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is spending by households on goods and services. |
personal Consumption expenditures |
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is the purchase of goods that will be used in the future to produce more goods and services. |
Gross Private Domestic Investment |
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this account includes the value of goods and services that government at all levels (i.e., national provincial, city, and municipal levels) purchases measured by their costs. |
Government Consumption Expenditures and Gross Investment |
GCEAGI |
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it measures GDP by adding all the incomes earned by households in exchange for the factors of production during a period of time |
The Income Approach |
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is the largest of the national income accounts |
Compensation of employees |
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its is an income from rent and royalties receive by property, owners who permit others to use their assets during a period of time |
Rental Income of Persons |
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includes those earned by self-employed proprietorships and partnerships who simultaneously manage their business and at the same time pay themselves for labor services rendered to their firms |
Profits |
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household both receive and pay interest |
Net Interest |
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to reconcile the above accounts with GDP Requires adding the consumption of fixed capital |
Depreciation |
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are levied as a percentage of a prices of goods and services sold and therefore become part of the revenue received by the firms |
Indirect Business taxes |
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