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131 Cards in this Set

  • Front
  • Back
Maximizing output with the given inputs is called what?
EFFICIENCY
A factory that emits pollution into a neighboring stream as a by-product of its production is creating a what?
EXTERNAL DISECONOMY
If a good has a price tag, then we call it what?
ECONOMIC GOOD
If that is a high price tag, then the good must be?
SCARCE
The frontier line of Maximum output capabilities that may be achieved when all available factors of production are being fully employed at their highest and est use.
PRODUCTION POSSIBILITIES CURVE or FRONTIER
The classical factors of production are what?
LAND, LABOR, and CAPITAL
Marxism is distribution according to need, meritocracy is distribution according to?
SCARCITY
author of Summa Theologica.
St. Thomas Aquinas
I’m a Bullionist in England, who is my ideological leader?
Thomas Mun
My French mercantilist friends would look up to who?
COLBERT
Who first proposed that wealth did not come from gold?
DAVID HUME
Who set out to prove David Hume wrong regarding wealth did not come from gold only to prove him right?
Adam Smith
Who explained that when equal amounts of a variable input are successively added to a fixed input, the MPP will eventually diminish due to unbalanced growth.
MALTHUS
A Mercantilist would support MFN status for China. (True or False?)
FALSE
Mr. Smith hung his ornaments on the Christmas Tree of Laissez Faire in what 1776 published inquiry?
WEALTH OF NATIONS
What kind of progression is represented by the following series of numbers: 2 - 4 - 8 - 16?
GEOMETRIC PROGRESSION
David Ricardo was a proponent of import tariffs. (True or False?)
FALSE
Of paper, rock, scissors, Ricardo preferred scissors to explain the Supply & Demand of whom?
MARSHALL
Who thought the Lyceum had a better football team than the Academy?
ARISTOTLE
Stationary State Doctrine is to Ricardo as Iron Law of Wages is to?
MARX
Do what your best at relative to everything else you do. It’s the law of?
COMPARATIVE ADVANTAGE
Who’s law is the law of comparitive advantage? (not that he wrote much more than 3 pages on the subject)
RICARDO
Demand is a function of?
UTILITY
Quantity Demanded is a function of?
PRICE
Who coined the terms util and widget?
MARSHALL
In Cardinal Utility Analysis, who was responsible for Total Utility?
J.S. MILL
As quantity increases, Marginal Utility must be?
DECREASING
If you’re as happy as you’re going to get you must be saturated. (True or False?)
FALSE
Who is credited with the law of diminishing marginal utility?
MENGER
TBEL is?
To Be Explained Later
The slope of MU is always negative, so the second derivative of TU will always be positive. (True or False?)
FALSE
How many indifference curves do we need in order to plot a properly derived demand curve?
2
I’m going to change demand! I’ll lower price. Did I change demand?
NO!!
If I raise the price, Pareto would say I decreased what?
WELFARE TRIANGLE
If I raise the price, Pareto would say I decreased the welfare triangle. Marshall would call it?
CONSUMER SURPLUS
Who gave us the Ordinal Utility Analysis?
EDGEWORTH
Ordinal Utility Analysis uses the Law of?
SUBSTITUTION
An indifference curve is described as a function where the quantity of whatever you are measuring is the same regardless of where you are on the curve. That means we can call this function what?
ISOQUANT
A reverse substitution effect is indicative of what type of consumer behavior?
CONSPICUOUS CONSUMPTION
Giffen also observed goods that did not obey the normal laws. These “inferior goods” represent the reverse of what effect?
INCOME
By “inferior” Marshall was referring to relative quality. (True or False?)
FALSE
If Victoria Secret’s raised its prices by 10% across the board and Farrell G’s total dollar value purchases rose by 8%, the verbal description
of Farrell G’s price elasticity of demand for lingerie would be?
RELATIVELY INELASTIC
If silkworms around the world miraculously increased production in celebration of Farrell’s passing Price Theory and subsequently the price of silk dropped, Farrell’s Budget Constraint would:
A. Shift Inward
B. Shift Outward
C. Pivot Inward
D. Pivot Outward
E. Remain Unchanged
D. Pivot Outward
Steve has a new plan to increase demand for his What’s The Course Record? Brand of Golf Clubs. One of these things just doesn’t belong…:
A. I’m going to hire Tiger Woods to promote my Holy Whaler Custom Drivers

B. I’m going lobby Bubba Clinton to sign a law requiring Golf to be taught in Public Schools

C. I’m going to publish a book that will reveal all of Dr. G’s stock picking secrets and raise everybody’s income.


D. I’m going to cut the price of my golf clubs by 25%.

E. I’m going to sabotage the local powerplant causing a blackout which will create a mini babyboom and eventually increase population.
D. I’m going to cut the price of my golf clubs by 25%.
A Linear demand function, downward sloping and extending to both axes crosses the quantity axis at 200. Where would MR be zero?
100
The inflection point on a TC curve represents the point of what?
DIMINISHING RETURNS
The inflection point on a VC curve represents the point of what?
DIMINISHING RETURNS
AC is at a minimum when it equals what?
MC
Fixed Supply can be described in the vocabulary of elasticity as?
TOTALLY INELASTIC
As output increases AFC stays constant. (True or False?)
FALSE
An increase in price for Golf Clubs will likely lead to an increase in price for Golf Balls. (True or False?)
FALSE
In the long run excess profits must remain positive for the firm to stay in business. (True or False?)
FALSE
What female economist showed her flair for creative terminology in describing different degrees of price discrimination?

A. Lauren Issacson
B. V. Lauren Day
C. Joan Robinson
D. Toni Kelly
E. Samantha Schumpeter
F. Maya Gershony
G. Lisa Adams
H. Frances Miranda
I. Veronica Lake
C. Joan Robinson
In perfect competition, the demand curve facing the industry is always Totally Elastic. (True or False?)
FALSE
Sven, the proud farmer, would prefer Government Purchase or Price Differential?
GOV’T PURCHASE
Ralph Nader would prefer Government Purchase or Price Differential?
PRICE DIFFERENTIAL
Our friend from Bangladesh would prefer Government Purchase or Price Differential?
GOV’T PURCHASE
Dr. G prefers Pandas to Bears and Bears to Raccoons, therefore Dr. G prefers Pandas to Raccoons. What assumption of the indifference curve model is
demonstrated in this example?
TRANSITIVITY
As between 6 utils and 7 utils, I’ll take 7, thank-you. What assumption of the
indifference curve model is demonstrated in this example?
RATIONALITY
Little Master G (long before the Ph.D.), stood at the origin and looked into the cave. A concave indifference curve would indicate what?
ADDICTION & TOLERANCE
Monopolists produce past the point of (to the right of) minimum AC so as not to allow idle capacity. (True or False?)
FALSE
PASS GO, COLLECT $200…Your budget constraint line shifts in, shifts out, pivots in, or pivots out?
SHIFTS OUT
Steve came up with one more way to increase demand for his golf clubs. He decided to buy as many golf courses as possible and lower the greens fees. Steve is:

A. Wacked (See B.)

B. Spending too much time with Dr. G

C. Hoping to increase demand in one market due to an increase in quantity demanded in an interdependent market.

D. Hoping for a reverse income effect.

E. Hoping for a reverse substitution effect.
C. Hoping to increase demand in one market due to an increase in quantity demanded in an interdependent market.
Steve sold 3 Holy Whaler drivers yesterday for $200 each. If Steve lowers the price to $150 and sells 4 Holy Whalers what is the price
elasticity of demand?
–1
Steve sold 3 Holy Whaler drivers yesterday for $200 each. If Steve lowers the price to $150 and sells 4 Holy Whalers. With a privce elasticity of demand = to -1, verbally describe the elasticity of demand.
Unit
The Belgian Endive production is 100 zuppabushels with a market price of $50. It has been determined that the parity price is $100 per zuppabushel. It has been determined that a price of $100 can only be maintained at an output of 75 zuppabushels. What would a government purchase program cost?
2500
The Belgian Endive production is 100 zuppabushels with a market price of $50. It has been determined that the parity price is $100 per zuppabushel. It has been determined that a price of $100 can only be maintained at an output of 75 zuppabushels. What would a price differential program cost?
5000
The Belgian Endive production is 100 zuppabushels with a market price of $50. It has been determined that the parity price is $100 per zuppabushel. It has been determined that a price of $100 can only be maintained at an output of 75 zuppabushels. What is the elasticity of demand for Belgian Endive?
–3/7
What is the number one rule of gambling or speculation?
ALWAYS TAKE A SMALL LOSS
A Bull market is a falling DJIA. (True or False?)
FALSE
What is a Stock market participant who is pessimistic called?
BEAR
What is the order of the queue?
PRICE-SIZE-TIME
An option to buy a stock at a set future price is called what?
CALL
An option to sell a stock at a set future price is called what?
PUT
What is the curb market called today?
AMEX
What is the Big Board?
NYSE
A chapter 20 bankruptcy is lawyer slang for what two chapters in sequence?
13 THEN 7
Your current ratio must be less than one to seek bankruptcy protection.
FALSE
A fair bet has an expected value of?
1
Would you be more likely to take a fair bet if you were risk seeking or risk adverse?
RISK SEEKING
Corporations must have a future termination date (they cannot live in perpetuity) because of the UCC’s Statue of Frauds. (True or False?)
FALSE
Goodwill is what type of asset?
INTANGIBLE
A Balance Sheet reports quarterly Profits and Losses. (True or False?)
FALSE
Who wrote The Republic?
Plato
Who wrote Summa Theologica?
St. Thomas Aquinas
Who wrote The Book of Mencius?
Mencius
Who wrote Discourse on Trade?
Thomas Mun
Who wrote Politics, Physics, Poetics?
Aristotle
Who wrote Analects?
Confucius
Who wrote Tableau Economique?
Francois Quesnay
Who was a famous Finance Minister?
Jean Baptiste Colbert
Who wrote Division of Labor?
Mencius
Who was the author of The Golden Rule?
Confucius
Who was responsible for the term Bullionism?
Thomas Mun
Who founded the Academy?
Plato
Who originated the term Physiocracy?
Francois Quesnay
Who came up with the term Just Price / Just Wage?
St. Thomas Aquinas
Who was the originator of the term Gold is Wealth?
Jean Baptiste Colbert
Who came up with Syllogistic Logic?
Aristotle
Who authored Traite d'Economique Politique?
Jean-Baptiste Say
Who authored Essay on Principles of Population?
Thomas Malthus
Who authored On Liberty?
John Stuart Mill
Who authored Das Kapital?
Karl Marx
Who authored Elements of Pure Economics?
Leon Walras
Who authored Political Discourse?
David Hume
Who authored Theory of Political Economy?
William Stanley Jevons
Who authored Wealth of Nations?
Adam Smith
Who authored Principles of Morals?
Jeremy Bentham
Who authored Foundations of Political Economy?
Carl Menger
Who came up with the Principles of Political Economics and Taxation?
David Ricardo
Who was the originator of Utility Theory?
John Stuart Mill
Who originated Quantity Theory of Money ?(Wealth=Goods+Services)
David Hume
Who originated the Law of Diminishing Marginal Utility?
Carl Menger
Who originated the General Equilibrium Theory?
Leon Walras
Who came up with the Invisible Hand Doctrine (Division of Labor)?
Adam Smith
Who came up with Business Cycles / Dialectical Materialism?
Karl Marx
Who came up with the Law of Markets?
Jean-Baptiste Say
Who devised the Sunspot Theory (20-year Cycle)
William Stanley Jevons
Who authored the Labor Theory of Value (Classical Rent Doctrine)?
David Ricardo
Who came up with Interventionist Liberalism (taught J.S. Mill)?
Jeremy Bentham
Who came up with the Law of Diminishing Returns (Pessimist)?
Thomas Malthus
.
.
50
.
22,500
If 50, maximizes the TU in the image above, what is maximum TU
.
.
When losing money on a stock, you should always average down (True / False)
FALSE
If your broker wants you to meet a margin, you should hang up on her? (True/False)
TRUE
If your stock is doing well, you should quit while you are ahead? (True/False)
FALSE
You should wait for the best opportunistic time from a tax basis before you sell stock? (True/False)
FALSE
When marrying a stock, you should should always invest 2 months salary? (True/False)
You're kidding right?
When they raided the whorehouse, along with the girls, they also took:

A. The little black book
B. The HBO Crew
C. An American Express Card
D. The Piano Player
E. Charlie Sheen
D. The Piano Player