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163 Cards in this Set
- Front
- Back
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Quotas, import licenses, and exchange controls are all examples of
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Non tarriff barriers to trade
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Quotas on Manufactured goods protect whom?
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Domestic Producers
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Domestic Producers are protected by Quotas? True or False.
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True
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Profit, Losses, Revenues, Expenses depreciations are all reported on a company's
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Income Statement
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On an income statement, a company's profit, losses, revenues, expenses are found?
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True
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The financial statement that reports the company's position as of a single date is called?
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Balance Sheet
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A Balance Sheet is Prima Facie and static?
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True
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A company's assets minus liabilities and net worth are found on
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Balance Sheet
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Goodwill is an intangible asset?
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Yes.
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What are two examples of an goodwill intangible asset?
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company's reputation, location, and management team.
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Cash is what kind of Asset
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Current Assets
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Land, Buildings, equipment are what kind of assets?
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Fixed Assets.
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Patents, Copyrights, goodwill are what kind of assets?
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Intangible Assets
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If the net worth of a company is negative, the firm is said to be
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Insolvent
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If total liabilities are greater than total assets, when net worth is negative, the company is said to be?
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Insolvent
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When current liabilities are greater than current assets, a company is considered to be?
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Illiquid. Illiquidity.
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Which system of logic is not based on empiricism?
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Deductive logic
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Which sytem of logic is based on Plato's thesis antithesis?
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Inductice logic
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Which system of logic is based on empiricism?
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Inductive logic.
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Fallacy of composition is what?
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What is true for the part is true for the whole.
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What does it mean to economize?
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To minimize inputs wtih given outputs.
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What does it mean to be efficient?
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To maximize outputs with given inputs.
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What is the difference between external economy and external diseconomy?
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Beneficial vs. detrimental
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The indifference curve for a perfect substitute is linear?
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True
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The indifference curce for a complimentary good is?
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A right angle.
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If the price of an inferior good is increased and I want more if it, this is called?
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Reverse substitution.
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If the price of an inferior good is increased and I want less of it, this is called?
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Substitution
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Merchantilists prefer tarrifs and subsidies?
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True
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Merchantilists favor free trade?
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False
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Where MU=0, TU is
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Maximized
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When TU begins to decrease with consumption, MU starts to become positive or negative?
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Negative
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When TU begins to increase, MU starts to become?
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Positive
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Is effective demand necesary condition of a market transaction?
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No, Effective demand is a sufficient condition of a market transaction.
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Demand is necessary condition?
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Yes.
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Demand is a sufficient condition?
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False. Demand is a necessary condition.
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What do we call the curb market today?
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American Stock Exchange
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What is the order of the queue?
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Price, size, and time.
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When you buy more stock as the price falls, it is called?
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Averaging down.
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An option to sell a stock?
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Put
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A option to buy a stock?
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Call
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Featherbedding is what?
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Lying around all day and getting paid?
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Lying around all day and getting paid is an example of what?
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Featherbedding
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Public law 480 does what?
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Allows the government to sell surplus grains to the poor.
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Counter funds are used to pay for government surplus grains?
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True
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Parity price times change in qunatity is what?
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government purchaswe program
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Quantity equilibrium times the change in price is what?
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Price differential program.
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Which government program pays farmers subsidies (unilateral transfer payments)?
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Price differential program.
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Utility received but not paid for?
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Consumer surplus
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Economics is an engine for the discovery of concrete truths?
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Marshall
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Who said Wealth = Goods and Services?
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Hume
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Who wrote Equilibrium theory in his book Elements of Pure economics?
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Walras
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Who created the indifference curve?
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Edgeworth
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Scissor Analogy to describe suppy and demand?
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Marshall
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Who believed in the consumer surplus?
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Marshall
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The economist of the theory of the firm?
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Marshall
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Quesnay was a ?
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Physiocrat
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Who was responsible General Theory of Employment?
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Keynes
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Is it more advantageous for a monopolist to operate in the short run?
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Yes, a monopolist wants to operate in the short run.
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Does a perfect competitor operate in the short run?
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No, the perfect competitor operates in the long run.
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Iron Law of wages is who's law?
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Ricardo
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If you are happy as you're going to get, you must be SATURATED?
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False, you are satiated.
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If you are happy as you're going to get, you must be satiated?
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True.
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The inflection point a TC curve represents the point of what?
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Minimal Marginal Costs
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The inflection point on a VC curve represents the point of what?
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Minimal Average Costs
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AC is at a minimum when it is equal to what?
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Marginal Costs
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Fixed Supply is Totaly inelastic?
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True.
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Three rules of gambling?
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P(E) > 1
Repetitive Gamble Always take a small loss. |
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When the provider of a gamble gets paid?
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Vigorish
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Double zeros are added to the roulette wheel to increase
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the Vigorish
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Buying car insurance is an example of
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hedging
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A non cash expense that is incurred as a natural resources are used up?
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Depletion
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A natural resource can be depreciation on a balance sheet?
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No, it is a depletion.
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A non-cash expense that is incurred as capital goods are used up.
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Depreciation.
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Capital goods can be depleted.
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No, capital goods are depreciated.
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To maximize profits, a company must go beyond the point of diminishing returns?
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True
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TR=TC
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Break even
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Variations above and below the trend line with periods measured from trough to trough?
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Business cycle
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The optimal level of production
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The capacity point. The minimum point on the average cost curve.
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All else remains constant
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ceteris paribus
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ceteris paribus
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all else remains constant
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An economic territory with the abscence of internal tarriffs.
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A Common Market
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When one good requires the use of another good?
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Complementary goods
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Utility received, but not paid for
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Consumer surplus
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When reach exceeds the grasp.
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entrepreneurial capacity constraint
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The fourth factor in production
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entrepreneurship.
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The price at which the quantity supplied equals the quantity demanded.
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equilibrium price
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a good used in the production of another good
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factor good
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THe absence of artificial barriers to entering a market
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free entry
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Interchangeable
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fungible. A good that can be substituted for a like good.
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making a decision today, the validity of which depds upon a future event.
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gambling
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the whole, where the whole is greater than the sum of the parts
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gestalt
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paying a premium to another party (insurance company) to bear or absorb a risk.
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hedging
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the tax paid that would otherwise be captured by the buyer or seller if there were no tax.
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incidence of tax
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goods standardized by government regulation or industrial convention.
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homegenous products
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a conditional proposition. An assumption or set of assumptions provisionally accepted as the basis for reasoning.
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hypothesis
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An asymptotic isoquant that assumes convexity, rationality, and transitivity.
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indifference curve
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Reasoning from the particular to the general.
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inductive logic
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Reasoning from the general to the particular.
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deductive logic
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Let the buyer beware
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caveat emptor. Everyone must be responsible for their economic decisions.
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The use of borrowed money at a fixed rate to invest in a security or other asset.
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leverage
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Buying stocks on margin
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leverage
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A good for which the elasticity of demand is greater than one.
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luxury
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A good for which the elasticity of demand is less than one.
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necessity
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the amount of profit required to maintain a business without attracting competitors.
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normal profit
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The profit that is not made in the best opportunity foregone.
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opportunity cost.
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two tenets of social behavior that suggest counter directional outcomes when applied arbitrarily to the same set of circumstances
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normative ambiguity
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A rule of conduct inherent in man's nature and discoverable by reason alone.
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natural law.
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The inflection point on the total cost or variable cost function.
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point of diminishing returns
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at first view, so far as it first appears
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prima facie
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Any market behavior that drives the price away from the trend line or moving average.
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pro-cyclical
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Buying and selling that destabilizes the market price by exagerating the vagaries of the cycle.
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pro-cyclical
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Profit maximization point
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MR=MC
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This for that. Something for something.
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quid pro quo
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a trade restriction which protects a domestic producer by limiting the amount of a particular good that may be imported
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quota
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TR=VC
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Shutdown point
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The decision stands.
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Stare Decisis. All future decisions must be in common with the previous decisions.
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a unilateral transfer of payment from the government to the business sector.
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subsidy
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a reasoned proposition derived from the established assumptions which explains past or predicts the future.
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theory
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the total satisfaction derived from all units consumed.
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Total utility.
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A unilateral transfer payment made to the household sector.
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Welfare
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Granted 30,000 arces of public land for colleges
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Morrill Act
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Government agricultural consultants in every farming community
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Hatch Act
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Price established by federal farm board
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Parity price
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Where the slope of a vector from the origin = the slope of TC function?
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min. ac
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a business with either the abscence of external tarriffs and internal tarrifs is called?
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free trade area
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This is the model that describes for whom the economy produces?
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distribution theory
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To tie or connnect a commodity to money is called
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monetize
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An increase in price followed by an increase in quantity demanded is called
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reverse income effect
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Business with an output that weighs significantly less than the raw materials used?
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weight subtracting industry
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an increase in price will cause the MU/P ratio to increase?
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False
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This is a form of a natural monopoly?
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decreasing cost industry
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What is a French merchantilist called?
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colbertist
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Any quantity of production before the point of dimishing returns is called?
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decreasing marginal cost
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What is the first degree of price discrimination?
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perfect
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What is the second degree of price discrimination?
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quantity discounts
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what is the third degree of price discrimination?
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market separation. Time Labeling Geographic
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A good for which the elasticity of demand is less than one?
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necessity
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a good for which the elasticity of demand is greater than one?
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luxury
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output is called what?
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product
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economic rent is a payment to
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factor of production
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A function that shows how much of one good it takes to make someone ambivalent to a given amoung of some other good is called
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indifferent curve
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Terms of trade is the Ricardian name for
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market price
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The ability and willingness to enter the market at some specific price is sufficient condition?
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True
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output per input is called
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productivity
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Decribe productivity when proportional increases in input correspond to an output increase from 100 to 150 to 175
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decreasing return to scale
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when price of fish goes down and quantity demanded decreases, what kind of effect is this?
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reverse income effect
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TR is maximized when demand is
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unit elastic
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what kind of effect is it when the price of a good decreases and more of it is demanded
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income effect
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a business that is located without regard to the factors of production is called?
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footloose
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an essential requirement for a specific outcome is called
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a necessary condition
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when two lines on a graph touch but do not cross, the are said to be
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tangent
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The straight line drawn from the initial point assumed to be the origin?
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vector
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a good or service used by the business sector
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investment good
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ordinal utility uses the law of
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substitution
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what is a good or service used by the household sector called?
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consumption good
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Any quantity of production beyond the minimum point on the mc function is called?
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area of increasing MC
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Utility companies separate markets according to time, this form of pricing is called?
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peak load
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a good or service which has 2 characteristcis of which both are necessary conditions is called?
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normal
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What is a good that is bought in large quantities as income increases called?
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superior
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This is the act that forbids predatory pricing?
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Patman act
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When is a firm said to be insolvent
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Net worth is negative
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When is a firm said to be illiquid?
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when the current ratio is >1
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In accounting, what does the term liquid mean?
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convertible to cash in less than 1 year.
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