Economics

Front 1

economic cycle

Back 1

q

Front 2

aggregate supply curve vs aggregate demand curve

Back 2

w

Front 3

GDP

Back 3

GDP measures production; the price of all goods and services produced by a domestic economy for a year

Front 4

elasticity

Back 4

sensitivity to a price chsnge. 2) price elasticity of demand = the ratio of % change in quantity / % change in price

Front 5

value chain analysis

Back 5

q

Front 6

supply chain operation reference

Back 6

4 steps process: plan. source. make. deliver

Front 7

substitute. vs complementary

Back 7

complementary : the price of steak up the demand for steak source drop.

Front 8

the price elasticity of demand

Back 8

the percentage change of demand / average demand. ÷ the percentage change of the price / average demand ex)

Front 9

SWOT of organizations success

Back 9

success. weakness. opportunity. threat

Front 10

economics content

Back 10

1) changes in economic and business cycle: GDP. indicator. AD curve. AS curve. multiplier effect 2) economic measure / indicator: expenditure approach. unemployment rate. price level and inflation. interest rates. monetary policy. 3) the law of demand and supply: market equilibrium. price elasticity. economic cost 4) market structures and pricing: perfect competition. monopoly oligopoly 5) globalization: international business operations 6) market influences on business strategies: SWOT. 7) financial risk managementa: exchange rate transfer pricing

Front 11

federal reserve vs businesses cycle

Back 11

monetary policy--- reserve requirements-- discount rate ( short term borrowing rate)

Front 12

multiplier effect vs business cycle

Back 12

a

Front 13

opportunity cost

Back 13

not represent actual cash outlay. ; the potential benefit lost. the alternative use

Front 14

deflation vs inflation

Back 14

deflation: a sustained decrease in the general price if goods and services. and in the level of interest rates

Front 15

actual national income vs. potential national income , GDP, the long run aggregate supply

Back 15

?

Front 16

the relevant cost when replacing the old van

Back 16

only purchase price of new van and disposal price of old van

Front 17

CPI

Back 17

measure what customers paid not company or industry. monthly data on changes. what has been paid. 2) a measure of the inflation rate ( the percentage change of the CPI from one period to the next) 3) to compare relative price changes over time. NOT simply establish a cost of living index

Front 18

amount adjusted for the 2% inflation ; the amount worth in real term

Back 18

dividing it by a factor of 1.02 ( $1030 ÷ 1.02 = $1009.80) which is 1 plus the 2% inflation rate

Front 19

inflation vs depreciation

Back 19

inflation undervalue the asset being depreciated. assets historical cost vs an inflation adjusted amount.

Front 20

a price setter vs a price taker

Back 20

a

Front 21

collusive pricing vs dual pricing vs predatory pricing. vs transfer pricing

Back 21

a

Front 22

currency weaken vs strengthen

Back 22

a weaker US dollar makes domestic goods less expensive than imported goods

Front 23

the dollar is depreciating against the euro

Back 23

the dollar is getting less expensive

Front 24

forward contract ( hedge)

Back 24

concerned about price drop then forward hedge to sell

Front 25

externalities benefit vs cost

Back 25

equilibrium-- market failure-- government intervention---price ceiling ( rent limit: supply shortage. older society) price floor( minimum wage. over supply. 고학력 공급 사회 ) 2) externalities cost: rain 중 차로 인해 옷이 젖으면 E benefit: 길을 가다가 돈을 주우면

Front 26

utility

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= satisfaction

Front 27

marginal

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= additional unit ( quantity) a one unit increase

Front 28

exchange rate vs currency value

Back 28

currency appreciation then exchange rate drop then import increase. currency depreciation then exchange rate increase then export incresse

Front 29

nominal interest

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= real interest + (inflation) risk premium. 2) fisher 방정식

Front 30

fiscal policy vs monetary policy

Back 30

tax( revenue) government expenditute. 2) monetary policy: open market operating ( sell t-bill) federal Reserve ratio. discount rate

Front 31

PPI: the producer price index

Back 31

the price of a basket of commodities at the point of the first commercial sale.

Front 32

multiplier effect and accelerated theory

Back 32

multiplier effect : income 의 변화에. 소비 와 저축 의 변화. and accelerated theory. : increase in investment then AD increase. next investment 보다 in a shorter time AD increase

Front 33

BOP: balance of payment

Back 33

(-) trade deficit. (+) trade surplus. trade balance + service account= current account. + capital account = balance of payment

Front 34

inferior goods vs normal goods

Back 34

a

Front 35

GDP

Back 35

produced by a domestic economy for a year. at the current market prices. 2) real GDP > potential GDP. GDP gap is negative then prices begin to rise

Front 36

monopoly vs monopolistic competition

Back 36

m c: numerous firm w differentiated products. few barriers to entry

Front 37

net domestic product

Back 37

GDP minus depreciation. 2) national income= net domestic product. plus income earned abroad minus indirect business taxes

Front 38

marginal cost. vs average total cost

Back 38

the average reaches it's minimum when it is equal to the marginal cost

Front 39

economic rent

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amount more than the next highest bidder the differences

Front 40

the law of diminishing returns

Back 40

as more variables are added to the fixed inputs the efficiency (prosuctivity) begins to decline

Front 41

a necessity vs a luxury good

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necessity: income elasticity < 1. luxury > 1

Front 42

recovery vs expansion

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expansion: rising beyond its average LTG trend

Front 43

trough

Back 43

the job was cut the demand was dropped. the significant excess capacity

Front 44

factors that shift AD

Back 44

change in WEALTH. INTEREST RATE EXPECTATIONS for the future economic outlook. EXCHANGE RATE. GOVERNMENT SPENDING CONSUMER TAXES

Front 45

factor that shift short run AS

Back 45

changes in INPUT PRICES. SUPPLY SHOCK

Front 46

natural rate of unemployment

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frictional + structural + seasonal unemployment. at its potential output level

Front 47

full employment

Back 47

when NO cyclical unemployment. still have natural unemployment

Front 48

GDP

Back 48

net= - depreciation. NI= - indirect business taxes ( sales tax) DI= less personal taxes

Front 49

inflation vs price level

Back 49

cause of inflation: demand - pull. cost-push

Front 50

li flatiron vs the value of money

Back 50

a

Front 51

interest rate

Back 51

real interest rate= nominal interest rate - inflation rate

Front 52

monetary policy

Back 52

the use of money supply. OMO. CHANGES IN DISCOUNT RATE. REQUIRED RESERVE RATIO (RRR)

Front 53

interest rate

Back 53

is determined by the supply and demand. demand vs interest rate. (inverse) supply vs interest rate

Front 54

GDP: income approach

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PRIDE: Profit to corporation and small business. :Rental income: interest income: depreciation: employee pay wage

Front 55

marginal revenue = marginal cost

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a firm produce up to the point mr = mc

Front 56

oligopoly

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kinked curve. oil industry. severe barrier to enter. few firm. significant cost to competr

Front 57

unit elasticity

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equal to 1, no changes

Front 58

a value chain

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a supplier- a firm - a customer- recycle or disposal

Front 59

SCOR: supply chain operation reference

Back 59

plan; sourcing; making; delivery

Front 60

substitute

Back 60

price change of good A vs demand change of good B

Front 61

validity check vs limit test

Back 61

input control; only employee list can transaction. :::: limit test; $5k payroll

Front 62

batch total

Back 62

total hours worked; batch: payroll is run in a batch

Front 63

access control vs input control

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access control: electronic access control: password & firewall

Front 64

average total cost vs total cost vs marginal cost

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average: total cost ÷ # of units. total cost: units × cost. marginal: difference between the total cost of producing 9 units and the total cost of producing 8 units

Front 65

the dollar price of the euro rises

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the euro increases in value in terms of dollars, the dollar depreciates

Front 66

real value after inflation; the amount worth in real terms

Back 66

$1030 , inflation 2% :: $1030 ÷ 1.02 = $1009.8

Front 67

foregone

Back 67

=not chosen

Front 68

law of diminishing return

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with additional workers. revenue increase with a decreasing rate

Front 69

the marginal propensity to consume

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♢consume / ♢ income

Front 70

CPI

Back 70

current year costs × the ratio of base to current year in dices. ex) $100500 × 121.3 / 168.3 ( reduced current year costs)

Front 71

inflation concept

Back 71

vs value of currency.( monetary asset = commodity) vs price level vs interest level. 2) depreciation ; historical costs vs an inflation adjusted amount

Front 72

deflation

Back 72

interest rate = zero. negative. increase money supply

Front 73

inflation : what is the amount in real terms after inflation

Back 73

should be lower. 1030 / 1.02 % = 1009.8$