Macro Exam 1

Front 1

Economics

Back 1

The study of how best to Allocate scarce resources amoung competing uses.

Front 2

Scarcity

Back 2

Lack of enough resources to satisfy all desired uses of those resources.

Front 3

Factors of Production

Back 3

land
labor
capital
Entreprenuership

Front 4

Capital

Back 4

Final goods produced for the use in the production of other goods--- Equipment Structures Technology

Front 5

Entrepreneurship

Back 5

The Assesmbling of resources to produce new or improved products and technologies

Front 6

Opportunity Cost

Back 6

The most desired goods or services that are forgone to obtain something else.

Front 7

Production Possibilities

Back 7

the Possibility in the number of products produced through given resources in a given time period.

Front 8

Efficiency

Back 8

the amount of product that can be produced with all the resources and technology

Front 9

Economic Growth

Back 9

An increase in output(Real GDP); an expansion of the production possibilities.

Front 10

Economic Decline

Back 10

A decrease in the output
(Real GDP); shrinkage in the production possibilities.

Front 11

Market Mechanism

Back 11

The use of Market prices and sales to signal desired outputs (Or resouce allocation)

Front 12

Laissez Faire

Back 12

The doctrine of "leave it alone," of non intervention in the market meechanism.

Front 13

Mixed Economy

Back 13

An economy that uses both market signals and government directives to allocate goods and resources.

Front 14

Market Failure

Back 14

An imperfection in the market mechanism that prevents optimal outcomes.

Front 15

Government Failure

Back 15

Government intervention that fails to improve economic outcomes.

Front 16

Macroeconomics

Back 16

The study of aggregate economic behavior.

Front 17

Microeconomics

Back 17

The study if individual behavior in the economy,of the components of the larger economy

Front 18

Ceteris Paribus

Back 18

The assumption of nothing changing.

Front 19

what economist focus on when they look at the economy

Back 19

WHAT goods and services does the US Produce?

How is that output produced?

FOR WHOM is the output produced?

Front 20

Per Capitia GDP

Back 20

The dollar Value of the GDP divided by total population; average GPD

Front 21

Income Transfers

Back 21

Payments to individuals for which no current goods or services are exchanged

--> Social security, Finacial aids

Front 22

Exports

Back 22

Goods and services sold to foreign buyers

Front 23

Imports

Back 23

Goods and services purchased from forign sources.

Front 24

Net Exports

Back 24

The value of Exports minus the value of imports.

Front 25

Human Capital

Back 25

The knowlege and skills possesed by the work force

Front 26

Productivity

Back 26

Output per unit of input such as output per labor hour

Front 27

Outsourcing

Back 27

the process of relocating all or part of a production processes to another country.

Front 28

Government responcibilities

Back 28

Provide a leagal framework
Protect the enviroment
Protect the consumers
Protect the labor

Front 29

Monopoly

Back 29

A firm that produces the entire market supply of a particualar good or service.

Front 30

Income Quintile

Back 30

One fifth of the population, rank ordered by income.

Front 31

Factor market

Back 31

anyplace where factors of production(Land labor and capital) are bought and sold

Front 32

Product market

Back 32

Any place where finished goods and services are bought and sold.

Front 33

The law of Supply

Back 33

The total quantities of a good that sellers are willing and able to sell at alternative prices

Front 34

The law of Demand

Back 34

The quantitiy of a good demanded ina given time period increases as its price falls

Front 35

Substitute Good

Back 35

Goods that substitute each other; when the price of a good rises, ther deman for another good increases

Front 36

Complimentary good

Back 36

goods frequently consumed in combination; when the price of goodx rises the deman for good y falls.

Front 37

The determinants of Demand

Back 37

Desire
Income
Other goods
Expectations
Number of buyers

Front 38

The determinants of Market supply

Back 38

Technology
Factor Cost
Other Goods
Taxes and Subsides
Number of sellers.

Front 39

Equilibrium Price

Back 39

The Price at which the quantity of a good demanded in a given timeperiod equalsthe quantity supplied.