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58 Cards in this Set
- Front
- Back
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Fiscal Policy
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government
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Monetary Policy
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money; "Fed"
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Opportunity Cost
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this for that; 1:1
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Marginal Analysis
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marginal cost vs marginal benefit
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allocative efficiency
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appoint resources to industry to meet society needs
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social society trust fund
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saves extra SS tax to be used for SS benefits
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U.S. securities
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treasury notes, bills, bonds (any debt obligation)
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proportional tax
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flat tax; equal
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regressive tax
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lower income= higher tax; higher income= lower tax
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progressive tax
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high income= high tax; low income= low tax
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menu cost
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cost of printing a new menu as PL changes
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efficiency wage
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elicit max efficiency throguh lower labor cost and raising incomes
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vertical range
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GDP stationary and PL rises; full capacity
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intermediate range
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growth
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injection
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adding money into economy
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structural unemployment
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unwanted skills
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discouraged worker
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left work force
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labor force
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16+, not in school, woth or looking for job
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disposable income
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after taxes
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trade surplus
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exports > imports
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trade defecit
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emports < imports
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smoot hawley tarriff
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increase tarriffs to encourage domestic spending
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substiture good
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something else for the same product (store vs name brand)
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determinants of demand
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everything except PL
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factors of production
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land, capital, human, entrepreneur
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ceterus paribus
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all things equal
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"after this therefore because of this" fallacy
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B after A therefor A cause B
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leakage
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taking money out
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diminiahing marginal utility
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consumer consumption incrwases so price level per unti decreases
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income effect
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income effects spending (changes qty demanded)
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substitution effect
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change in qty = changes in relative expense = change in production costs
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law of supply
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increase $ = increase qty supplied
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rationing function of prices
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ability of market to change consumption throguh price change
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plant
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place of work
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LLC
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Limited liability company
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public good
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indivisible products
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horizontally intergrated
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several plants performing same function
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vertically intergrated
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plants that do different functions at various stages of production
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federal finance
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govt spending: social securities, military, health. govt income: income tax, pay roll tax, sales tax
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intermediate goods
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resale or further processing
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personal income
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before taxes
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consumer price index
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measure prices fixed on typically purchased goods
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potential output
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all resources being used efficiently
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Okun's law
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1% change in unemployment = 2% change in GDP gap
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avg propenaity to consume
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APC= %/ frac spent out of disposable income
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horizontal range
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level of output increases but PL stays same; heading towards FE
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employment act of 1946
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Board of Economic Advisors and Joint Economic Committee. govt can intervene in economy
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token money
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face value worth more than intriatic value
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network effect
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increase value per each user as total number of users increases
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functional finance
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fiscal policy, noninflation, FE, RGDP without regard to public debt
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economies of scale
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less cost per unit; increased market size
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law of incrwasin opp cost
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prod of g/s increase so does PL per unit
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command system
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organized economy were private resources are publicly owned
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surplus
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supply > demand
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shortage
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demand > supply
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firm
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multi plant
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inductry
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multi firm
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conglomerate
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everthing (ex Samsung)
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