Final for economics
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| 395175976 | Economics | the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence these choices | 0 | |
| 395175977 | Microeconomics | the study of the choices that individuals and businesses makeand the way these choices interact and are influenced by governments | 1 | |
| 395175978 | Macroeconomics | the study of the aggregate (or total) effects on the national economy and the global economy of the choices that individuals, businesses, and governments make | 2 | |
| 395175979 | Scarcity | the condition that arises because wants exceed the ability of resources to satisfy them | 3 | |
| 395175980 | Marginal Benefit | the benefit that arises from a one-unit increase in an activity; the marginal benefit of something is measured by what you are willing to give up to get one additional unit of it | 4 | |
| 395175981 | Marginal Cost | the opportunity cost that arises from a one-unit increase in an activity; the marginal cost of something is what you must give up to get one additional unit of it | 5 | |
| 396913412 | Tradeoff | must give up something to get something else | 6 | |
| 396913413 | Opportunity Cost | the best thing you must give up to get an item | 7 | |
| 396913414 | Factors of Production | Land, Capital, Labor, Entrepreneurship | 8 | |
| 396913415 | Sunk Cost | a previously incurred and irreversible cost | 9 | |
| 396913416 | Human Capital | the knowledge and shill that people obtain from education, on-the-job training, and work experience | 10 | |
| 396913417 | Ceteris Paribus | other things remaining the same | 11 | |
| 396913418 | Physical Capital | the funds that firms use to buy and operate physical capital | 12 | |
| 396913419 | Physical Capital | the tools, instruments, machines, buildings, and other items that have been produced in the past and that are used to produce goods and services | 13 | |
| 396945114 | Rational Choice | looking at all possible resources first before making a decision | 14 | |
| 396945115 | Factor Market | markets in which the services of factors of production are bought and sold | 15 | |
| 396945116 | Product Market | markets in which goods and services are bought and sold | 16 | |
| 396945117 | Income | Rent, wages, interest, and profit | 17 | |
| 396945118 | Market | any arrangement that brings buyers and sellers together and enables them to get information and do business with each other | 18 | |
| 396945119 | Change in demand | shift on the DS curve | 19 | |
| 396945120 | Change in quantity demanded | movement on DS curve | 20 | |
| 396945121 | Inferior Goods vs. Normal Goods | higher the income, the more brand-name items you will buy lower the income, the more generic items you will buy | 21 | |
| 396945122 | Market equilibrium | when the quantity demanded equals the quantity supplied - when buyers' and sellers' plans are in balance | 22 | |
| 396945123 | Shortage | below equilibrium | 23 | |
| 396945124 | Surplus | above equilibrium | 24 | |
| 396945125 | Price ceiling | the highest price at which it is legal to trade a particular good, service, or factor of production | 25 | |
| 396945126 | Price floor | the lowest price at which it is legal to trade a particular good, service, or factor of production | 26 | |
| 396945127 | Business Cycle | different phases of the economy - expansion, peak, recession, trough | 27 | |
| 396945128 | Gross Domestic Product (GDP) | the market value of all the final goods and services produced within a country in a given time period | 28 | |
| 396945129 | Final goods and services | a good that is produced for its final user and not as a component of another good or service | 29 | |
| 396945130 | Intermediate goods and services | a good or service that is used as a component of a final good or service | 30 | |
| 396945131 | Investment | the purchase of new capital and additions to inventories | 31 | |
| 396945132 | Transfer payments | financial aid, welfare | 32 | |
| 396945133 | Expenditure Approach | C + I + G + NX consumption expenditure + investment + gov. expenditures + net exports of goods and services | 33 | |
| 396945134 | Income Approach | wages for labor services + interest for the use of capital, rent for the use of land + profits for entrepreneurship | 34 | |
| 396945135 | Real GDP | compared to base year | 35 | |
| 396945136 | Nominal GDP | compared to same year | 36 | |
| 396945137 | Standard of Living | The level of consumption of goods and services that people enjoy, on the average, measured by average income per person | 37 | |
| 396945138 | Real GDP per person | real GDP divided by the population | 38 | |
| 396945139 | Consumer Price Index | a measure of the average of the prices paid by urban consumers for a fixed market basket of consumption goods and services | 39 | |
| 396960417 | GDP deflator | nominal GDP divided by real GDP multiplied 100 | 40 | |
| 396960418 | Inflation Rate | the percentage change in the price level from one year to the next | 41 | |
| 396960419 | Frictional unemployment | workers in between jobs; normal sort of unemployment | 42 | |
| 396960420 | Structural unemployment | arises when the job changes; maybe from technology | 43 | |
| 396960421 | Seasonal unemployment | short term employment during specific times of the year | 44 | |
| 396960422 | Cyclical unemployment | business slows down; workers are laid off | 45 | |
| 396960423 | Labor force | people employed and unemployed | 46 | |
| 396960424 | Full employment | the lowest possible unemployment rate with the economy growing and all factors of production being used as efficient as possible | 47 | |
| 396960425 | Potential GDP | the level of real GDP that the economy would produce if it were at full employment | 48 | |
| 396960426 | Unemployment rate | the percentage of the people in the labor force who are unemployed number of people unemployed/ labor force x 100 | 49 | |
| 396960427 | Classical macroeconomics | a body of theory about how a market economy works and why it experiences economic growth and fluctuations | 50 | |
| 396960428 | Keynesian macroeconomics | theory about how a market economy works that stresses the need for active government intervention to achieve full employment growth | 51 | |
| 396960429 | Demand for labor | the relationship between the quantity of labor demanded and real wage rate when all other influences on firms' hiring plans remain the same | 52 | |
| 396960430 | Efficiency wage | a real wage rate that is set above the full-employment equilibrium wage rate to induce greater work effort | 53 | |
| 396960431 | Union wage | a wage rate that results from collective bargaining between a labor union and a firm | 54 | |
| 396969638 | Labor Productivity | the quantity of real GDP produced by one hour of labor equation: (real GDP/ aggregate hours) | 55 | |
| 396969639 | Rule of 70 | 70 divided by the annual percentage growth rate of the variable | 56 | |
| 396969640 | Economic Growth Rate of Real GDP | ((real GDP in current year - real GDP in previous year)/real GDP in previous year) x 100 | 57 | |
| 396969641 | Economic freedom | precondition for economic growth people are able to make personal choices and are free to buy and sell in markets | 58 | |
| 396969642 | Property rights | the social arrangements that govern the protection of private property | 59 | |
| 396969643 | Demand for loanable funds | the relationship between the quantity of loanable funds demanded and the real interest rate when all other influences on borrowing plans remain the same | 60 | |
| 396969644 | Supply for loanable funds | the relationship between the quantity of loanable funds supplied and the real interest rate when all other influences on lending plans remain the same | 61 | |
| 396969645 | Money | any commodity or token that is generally accepted as a means of payment | 62 | |
| 396969646 | Functions of money | medium of exchange, unit of account, store of value | 63 | |
| 396983349 | M1 | currency held by individuals and businesses and traveler's checks plus checkable deposits owned by individuals and businesses | 64 | |
| 396983350 | M2 | M1 plus savings deposits and small time deposits, money market funds, and other deposits | 65 | |
| 396983351 | Federal Reserve System ( the Feds!) | the central bank of the U.S. | 66 | |
| 396983352 | FOMC (Federal Open Market Committee) | the Fed's main policy-making committee | 67 | |
| 396983353 | Open market operations | the purchase or sale of government securities by the NY Fed in the open market | 68 | |
| 396983354 | Monetary base | the sum of coins, Federal Reserve notes, and banks' reserves at the Fed | 69 | |
| 396983355 | Discount rate | the interest rate at which the Fed stands ready to lend reserves to commercial banks | 70 | |
| 396983356 | Reserve requirement | the minimum percentage of deposits that the Fed requires banks and other financial institutions to hold in reserves | 71 | |
| 396983357 | Federal Funds Rate | the interest rate on interbank loans | 72 | |
| 396983358 | Demand for money | the relationship between the quantity of money demanded and the nominal interest rate, when all other influences on the amount of money that people wish to hold remain the same | 73 | |
| 396983359 | Supply for money | the relationship between the quantity of money supplied and the nominal interest rate | 74 | |
| 396983360 | Hyperinflation | inflation at a rate that exceeds 50 percent a month | 75 | |
| 396983361 | Aggregate demand | the relationship between the quantity of real GDP demanded and the price level when all other influences on expenditure plans remain the same | 76 | |
| 396983362 | Aggregate supply | the relationship between the quantity of real GDP supplied and the price level when all other influences on production plans remain the same | 77 | |
| 396983363 | Fiscal Policy | changing taxes, transfer payments, and government expenditures on goods and services | 78 | |
| 396983364 | Monetary Policy | Changing the quantity of money and the interest rate | 79 | |
| 396996991 | Above full-employment equilibrium | when equilibrium real GDP exceeds potential GDP | 80 | |
| 396996992 | Below full-employment equilibrium | when potential GDP exceeds equilibrium real GDP | 81 | |
| 396996993 | Inflationary Gap | a gap that exists when real GDP exceeds potential GDP and that brings a rising price level | 82 | |
| 396996994 | Recessionary Gap | a gap that exists when potential GDP exceeds real GDP and that brings a falling price level | 83 | |
| 396996995 | Induced expenditure | the components of aggregate expenditure that change when real GDP changes | 84 | |
| 396996996 | Autonomous expenditure | the components of aggregate expenditure that do not change when real GDP changes; independent | 85 | |
| 396996997 | Consumption function | the relationship between consumption expenditure and disposable income, other things remaining the same | 86 | |
| 396996998 | Marginal Propensity to Consume | the fraction of a change in disposable income that is spent on consumption - the change in consumption expenditure divided by the change in disposable income that brought it about equation: change in consumption expenditure/ change in disposable income | 87 | |
| 396996999 | Automatic stabilizers | features of fiscal policy that stabilize real GDP without explicit action by the government | 88 | |
| 396997000 | Budget deficit | the negative budget balance when outlays exceed tax revenues | 89 | |
| 396997001 | Federal Budget | an annual statement of the revenues, outlays, and surplus or deficit of the government of the U.S. | 90 | |
| 396997002 | Tax wedge | the gap created by a tax between what a buyer pays and what a seller receives. In the labor market, it is the gap between the before-ta wage rate and the after-tax wage rate | 91 | |
| 396997003 | Laffer Curve | the relationship between the tax rate and total tax revenue it rises, reaches a maximum, then falls | 92 | |
| 396997004 | Discretionary fiscal policy | a fiscal policy action that is initiated by the act of Congress | 93 | |
| 396997005 | Core inflation rate | annual percentage change in the Personal Consumption Expenditure deflator excluding the prices of food and fuel | 94 | |
| 396997006 | Inflation targeting | a monetary policy strategy in which the central bank makes a public commitment to achieving an explicit inflation target and to explaining how its policy actions will achieve that target | 95 | |
| 397315992 | Labor force participation rate | labor force / working age participation x 100 | 96 |
