Econ Test 1

Front 1

The study of how people allocate their limited resources to satisfy their unlimited wants

Back 1

Economics

Front 2

things used to provide goods and services to satisfy people's wants

Back 2

Resources

Front 3

What people would by if their incomes were unlimited

Back 3

Wants

Front 4

Rewards for engaging in a particular activity

Back 4

Incentives

Front 5

Neurotransmitters pass through the synaptic knob's membrane into the ____ ___

Back 5

Synaptic Cleft

Front 6

The study of decision making undertaken by individuals.

Back 6

Microeconomics

Front 7

The study of the behavior of the economy as a whole.

Back 7

Macroeconomics

Front 8

Total amounts of quantities

Back 8

Aggregates

Front 9

Unproven ideas that can predict behavior and relationships

Back 9

Theories

Front 10

Simplified reppresentations of the real world.

Back 10

Models

Front 11

What do you receive from models? (3)

Back 11

1. Useable valid predictions
2. Utilize only essential relationships
3. Useful though not always realistic

Front 12

Not taking any chances! Investing in places that are not risky though they do not yield as much money.

Back 12

Risk Adverse Behavior

Front 13

The assumption that nothing changes except the factors

Back 13

Ceteris paribus Assumption

Front 14

Approach to the study of consumer behavior that emphasizes psychological limitations and complications that potentially interfere with rational decision making.

Back 14

Behavioral Economics

Front 15

Hypothesis that people are nearly, but NOT fully rational so they can not examine every possible choice.

Back 15

Bounded Economics

Front 16

What are the 3 Unrealistic Characteristics?

Back 16

1. Unbounded Selfishness
2. Unbounded Willpower
3. Unbounded Rationality

Front 17

The idea that people are able to consider every relevant choice.

Back 17

Unbounded Rationality

Front 18

The idea that choices are always consistent with long term goals

Back 18

Unbounded Willpower

Front 19

The idea that people are always interested in their own satisfaction

Back 19

Unbounded Selfishness

Front 20

Can you get a preliminary injunction if the claim is for money damages?

Back 20

NO. If it's an action that seeks SOLELY money damages you CANNOT get preliminary injunction. Only remedy, if any, is attachment.

E.g., P sues D for nonpayment of a debt. Prior to judgment, P cannot enjoin D from transferring assets or spending money. P’s remedy, if any, would be attachment (Lien).

Front 21

If A then B

Back 21

Positive Economics

Front 22

Analysis involving value judgements about economic policies

Back 22

Normative Economics

Front 23

If A then B

Back 23

Positive Economics

Front 24

Analysis involving value judgements about economic policies

Back 24

Normative Economics

Front 25

What are the 3 Unrealistic Characteristics?

Back 25

1. Unbounded Selfishness
2. Unbounded Willpower
3. Unbounded Rationality

Front 26

The idea that people are able to consider every relevant choice.

Back 26

Unbounded Rationality

Front 27

The idea that choices are always consistent with long term goals

Back 27

Unbounded Willpower

Front 28

The idea that people are always interested in their own satisfaction

Back 28

Unbounded Selfishness

Front 29

Analysis that is STRICTLY limited to making either purely descriptive statements or scientific predictions

Back 29

Positive Economics

Front 30

If A then B

Back 30

Positive Economics

Front 31

Analysis involving value judgements about economic policies

Back 31

Normative Economics

Front 32

An increase in one variable is associated with an increase in the other.

Back 32

Direct Relationship

Front 33

Increase in one leads to a decrease in another.

Back 33

Inverse Relationship

Front 34

Change in Y divided by the change in X

Back 34

Slope

Front 35

A situation in which the ingredients for producing the things that people desire are insufficient to satisfy all wants at a zero price.

Back 35

Scarcity

Front 36

Scarcity does not = (2 things)

Back 36

Shortage
Poverty

Front 37

Things that affect an individuals resources.
When we do not have enough resources to fulfill our wants

Back 37

Poverty

Front 38

Occur in limited quantities

Back 38

Natural Resources

Front 39

The productive contributions of workers

Back 39

Labor

Front 40

All manufactured resources, including buildings, equipment, machines and improvements to land that are used for production

Back 40

Physical Capital

Front 41

The accumulated training and education of workers.

Back 41

Human Capital

Front 42

Innovation, coming up with a new way to do something, or a whole new use for something.

Back 42

Entrepreneurship

Front 43

Not always tangible, bring individuals satisfaction or happiness.

Satisfying a want or bringing pleasure

Back 43

Goods

Front 44

Scarcity and therefore have value

Back 44

Economic Goods

Front 45

A desire, when they are fulfilled we "want/desire" more.

Back 45

Want

Front 46

A necessity. Indefinable, what one person wants another may not

Back 46

Needs

Front 47

Scarcity forces us to make

Back 47

Choices

Front 48

A lost opportunity

Back 48

Cost

Front 49

The highest-valued, next best alternative that must be sacrificed to obtain something or to satisfy a want

Back 49

Opportunity Cost

Front 50

A curve representing all possible combinations of maximum outputs that could be produced assuming a fixed amount of productive resources of a given quantity

Back 50

Production Possibilities Curve (PPC)

Front 51

The pool of applied knowledge

Back 51

Technology

Front 52

Goods produced to produce other goods more efficiently whether it is cheaper or easier

Back 52

Capital Goods

Front 53

The use of goods and services for personal satisfaction

Back 53

Consumption

Front 54

There is always a trade off between Capital Goods and

Back 54

Consumption

Front 55

The ability to produce a good or service at a lower opportunity cost compared to other producers

Back 55

Comparative Advantage

Front 56

The ability to produce more units of a good or service using a given quantity of labor or resource inputs

Back 56

Absolute Advantage

Front 57

All of the arrangements that individuals have for exchanging with one another

Back 57

Demand

Front 58

The observation that there is a negative or inverse relationship between the price of any good or service and the quantity demanded, holding other factors constant

Back 58

Law of Demand

Front 59

The price in relation to something else

Back 59

Relative Price

Front 60

The price of one commodity divided by the money price of another commodity

Back 60

Relative Price

Front 61

The price we observe today, expressed in today's dollars

Back 61

Money Price

Front 62

Gives a schedule of alternative quantities demanded per year at different prices

Back 62

Demand Schedule

Front 63

A graph representation of the demand schedule.

Back 63

Demand Curve

Front 64

A negatively sloped line showing the inverse relationship between price and the number demanded

Back 64

Demand Curve

Front 65

Goods for which demand increases as income increases

Back 65

Normal Goods

Front 66

Goods for which demand goes down as income goes up

Back 66

Inferior Goods

Front 67

Quantity supplied during a given period is usually directly related to the goods price, all other things constant.

Back 67

Law of Supply

Front 68

When quantity demanded = quantity supplied

Back 68

Equilibrium

Front 69

When the supply curve meets the demand curve

Back 69

Equilibrium Point

Front 70

When everything is still moving on the market. (Usually surplus or shortage)

Back 70

Disequilibrium

Front 71

Time required for the market to adjust

Back 71

Period

Front 72

Anything above what consumers will buy. When

Back 72

Surplus

Front 73

When quantity supplied is greater than quantity demanded

Back 73

Surplus

Front 74

When the market reaches equilibrium again.

Back 74

The Market Is Cleared

Front 75

Artificially set prices above the equilibrium price, the minimum it can go

Back 75

Price Floor

Front 76

Legal maximum price that may be charged for a particular good or service

Back 76

Price Ceiling

Front 77

The responsiveness of the quantity demanded of a commodity to changes in its price

Back 77

Price of Elasticity of Demand

Front 78

If and how much the curve will shift

Back 78

Elasticity Resose