Econ 201 - Concordia

Front 1

macroeconomics

Back 1

the study of the economy as a system in which interactions and feedbacks among sectors determine national output, employment and prices.

Front 2

microeconomics

Back 2

the study of individual behaviour in the context of scarcity.

Front 3

goal of decision making

Back 3

do as well as they can, given the constraints imposed by the operating environment.

Front 4

mixed economy

Back 4

goods and services are supplied both by private suppliers and government.

Front 5

model

Back 5

a formalization of theory that facilitates scientific inquiry.

Front 6

theory

Back 6

a logical view of how things work, and is frequently formulated on the basis of observation.

Front 7

opportunity cost

Back 7

what must be sacrificed when a choice is made.

Front 8

Production Possibility Frontier (PPF)

Back 8

combination of goods that can be produced using all of the resources available.

Front 9

Consumption Possibility Frontier (CPF)

Back 9

the combination of goods that can be consumed as a result of a given production choice.

Front 10

Economy-Wide PPF

Back 10

the set of goods and services combinations that can be produced in the economy when all available productive resources are in use.

Front 11

productivity of labour

Back 11

output of goods/services per worker

Front 12

capital stock

Back 12

the buildings, machinery, equipment and software used in producing goods and services.

Front 13

recession

Back 13

when output falls below the economy's capacity output.

Front 14

boom

Back 14

period of high growth that raises output above normal capacity output.

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Full Employment Output

Back 15

Yc=(number of workers at full employment)×(output per worker).

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Time series data

Back 16

set of measurements made sequentially at different points in time.

Front 17

Cross-section data

Back 17

values for different variables recorded at a point in time.

Front 18

Repeated c-s data

Back 18

cross-section data recorded at regular or irregular intervals.

Front 19

Longitudinal data

Back 19

follow the same units of observation through time.

Front 20

% change

Back 20

(change in values)/original value×100.

Front 21

Consumer Price Index (CPI)

Back 21

the average price level for consumer goods and services.

Front 22

Inflation/deflation rate

Back 22

the annual percentage increase (decrease) in the level of consumer prices.

Front 23

Real price

Back 23

the actual price adjusted by the general (consumer) price level in the economy.

Front 24

Index #

Back 24

value for a variable, or an average of a set of variables, expressed relative to a given base value.

Front 25

Regression line

Back 25

representation of the average relationship between two variables in a scatter diagram.

Front 26

Positive econ

Back 26

studies objective or scientific explanations of how the economy functions.

Front 27

Normative econ

Back 27

offers recommendations that incorporate value judgments.

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Econ equity

Back 28

concerned with the distribution of well-being among members of the economy.

Front 29

Demand

Back 29

the quantity of a good or service that buyers wish to purchase at each possible price, with all other influences on demand remaining unchanged.

Front 30

Supply

Back 30

the quantity of a good or service that sellers are willing to sell at each possible price, with all other influences on supply remaining unchanged.

Front 31

Quant. demanded

Back 31

defines the amount purchased at a particular price.

Front 32

Quant. supplied

Back 32

refers to the amount supplied at a particular price.

Front 33

Equilibrium price

Back 33

equilibrates the market. It is the price at which quantity demanded equals the quantity supplied.

Front 34

Excess supply

Back 34

exists when the quantity supplied exceeds the quantity demanded at the going price.

Front 35

Excess demand

Back 35

exists when the quantity demanded exceeds quantity supplied at the going price.

Front 36

Short side of the market

Back 36

determines outcomes at prices other than the equilibrium.

Front 37

Demand curve

Back 37

graphical expression of the relationship between price and quantity demanded, with other influences remaining unchanged.

Front 38

Supply curve

Back 38

graphical expression of the relationship between price and quantity supplied, with other influences remaining unchanged.

Front 39

Subsitute goods

Back 39

when a price reduction (rise) for a related product reduces (increases) the demand for a primary product, it is a substitute for the primary product.

Front 40

Complementary products

Back 40

when a price reduction (rise) for a related product increases (reduces) the demand for a primary product, it is a complement for the primary product.

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Inferior good

Back 41

demand falls in response to higher incomes.

Front 42

Normal good

Back 42

demand increases in response to higher incomes.

Front 43

Comparative static analysis

Back 43

compares an initial equilibrium with a new equilibrium, where the difference is due to a change in one of the other things that lie behind the demand curve or the supply curve.

Front 44

Price controls

Back 44

government rules or laws that inhibit the formation of market-determined prices.

Front 45

Quotas

Back 45

physical restrictions on output.

Front 46

Market demand

Back 46

horizontal sum of individual demands.