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26 Cards in this Set
- Front
- Back
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Wealth
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the total value of assets used as a store of value
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Velocity of money
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the ration of nominal GDP to the money supply; in effect, the average number of transactions supported by each dollar of the money supply
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Variable cost
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a cost of production that depends on the quantity produced
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Unemployment rate
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the number of unemployed workers as a fraction of the total labor force
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Unemployment
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the state of actively seeking paid work but being unable to find it
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Tragedy of the common
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the depletion of a common resource due to overuse
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Total surplus
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the sum of consumer and producer surplus
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Total revenue
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the total revenue received by a supplier
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Technology
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knowledge about the techniques bu which inputs are transformed into the goods and services that households desire
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Supply schedule
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a table shwoing the relationship between the price of a good or service and the quanity supplied
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Supply curve
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a graphical representation of the quantity of a good or service supplied as a function of the price
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Substitutes
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two goods for which an increase in the price of one leads to an increase in the demand for the other
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Structural unemployment
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unemployment that results from mismatch in skills, locations, or other important characteristics between job seekers and the available jobs
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Scarcity
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an inescpable fact of human existnce that results from the fact that the available resources are always less than our unlimited wants
* We will always want more than we can have. This causes scarcity.* |
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Savings
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the differnce between a person's disposable income and his or her expenditures
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Rival goods
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goods or services characterized by the fact that one person's enjoyment of the good or service reduces the quanity available for others' enjoyment
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Reserves
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the fraction of deposit liabilities that banks hold to meet depoistor withdrawls
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Reserve requirement
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the amount of reserves the Federal Reserve requires banks to hold
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Rent seeking
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using political influence to increase one's economic profits at the expense of others
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Real GDP
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the production of goods and and services valued at constant prices
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Rationality
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when individual choices are made by comparing the benefits and costs of different actions and then selecting the action that produces the greatest benefit
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Public good
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a good or service for which it is not possible to establish individual property rights
*These are things such as parks, public highways, and even the air we breathe. If no one person can lay claim to it, then it is a public good.* |
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Production possibility frontier
(PPF) |
a graphical depiction of the combinations of output that can be produced by an economy
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Producer surplus
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the difference between the price that producers receive for supplying a good and their marginal cost of producing it
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Price discrimination
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when a business sells tyhe same product to different buyers at different prices
*Think: they have to have a reason to DISCRIMINATE against you to charge you a different PRICE* |
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Potential output
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the quanity of output that would be produced by an economy if all of its resources were being employed at normal rates
*Think: how much OUTPUT could the country POTENTIALLY have?* |
