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39 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Cause and cure of deadwight loss |
cause = taxation cure = no taxation |
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GDP |
Gross Domestic Product |
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GNP |
Gross National Product |
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Income Approach to GDP |
(W)ages + (R)ent + (I)nterest + (P)rofit |
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Expenditures Approach to GDP |
(C)onsumption + (i)nvestment + (G)overnment Spending + (N)et E(x)ports |
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GDP & GNP = $?/person = $? trillions
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50k/person and 17tillion |
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What does GDP not count |
household production, intermediate goods, illegal goods, unreported goods, quality impovements, increased leisure, "bads" |
(ie cotton) (ie polution)
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Strength of GDP |
good overall measure of economy |
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GDP Limitation |
not a "perfect" measure of economy |
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Per capita GDP vs. Real GDP |
REAL GDP = per capita GDP adjusted for inflation |
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GDP growth Causes |
more land, capital , and entreprenuers |
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Historical patterns of GDP growth before 1800 and after 1800 |
before the 1800 90% of people were poor |
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Physical Capital |
material goods |
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Human Capital |
What you can do |
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How does society compel free riders to pay |
taxes, tolls, ad views |
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How does corruption effect GDP |
bribes and unfair elections |
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economy of scale |
moving toward efficiency |
(ie bigger is better/cable company)
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diseconomy of scale |
moving toward ineffeciency |
(ie 3+ men and a truck)
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Definition: Employed |
Working an hour or more per week for pay |
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Unemployed |
willing, able, and looking for a job but not working |
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Not in labor force |
not willing, able or looking for a job |
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Labor Force |
anyone 16+ willing and able to work |
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Labor Force Particiapation Rate |
(employed+unemployed)/anyone 16+ |
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Potential Labor Force |
anyone 16 and older |
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Structural Unemployment |
Skill no longer needed |
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Frictional Unemployment |
quit, moved, or fired |
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Seasonal Unemplyment |
seasonal job |
lifeguard, santa clause |
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Cyclical Unemployment |
caused by business cycle |
boom or bust |
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Natural Rate of Unemployment |
over 6% |
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Long Term Unemployment |
over 27 weeks |
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Short Term Unemployment |
less than 27 weeks |
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Discouraged Workers |
Someone who cannot find employment and stops looking |
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How Employee at will affects unemployment rate |
lowers unemployment cause it is easier to release unneeded workers |
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Why is unemployment so harmful |
Long term unemployment causes people to loose skills |
depression/alcoholism |
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Baby Boomers and unemployment |
Baby boomers are starting to retire causing a shortage in the labor force |
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How do unemployment benefits increase unemployment |
people are pickier about the jobs they take |
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Cause of Inflation |
More Money |
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Cure for inflation |
taxation or less money |
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Cause of deflation |
supply of goods is higher than the demand |
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