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| 11674590748 | economics | the study of how society manages its scarce resources | 0 | |
| 11674591809 | ceteris paribus | latin phrase that means "all other things held constant" | 1 | |
| 11674596640 | macroeconomics | the study of economics on a larger scale; focuses on the bigger picture rather than small details studied in micro- needle in a haystack from 30000 ft analogy | 2 | |
| 11674624869 | marginal analysis | method used to find the relationship between the cost/benefit of a product when adding or losing another unit of labor, capital, etc. | 3 | |
| 11674695922 | utility | the usefulness of a good or service to a consumer or producer | 4 | |
| 11674703166 | 3 basic economic questions | what to produce? how to produce? for whom to produce? | 5 | |
| 11674733838 | economic resources | goods and services available to individuals and businesses | 6 | |
| 11674720469 | 4 factors of production | cell: capital, entrepreneurship, land, & labor | 7 | |
| 11674742086 | investment | the purchase of a good that will not be used on that day, but will give the buyer money in the future | 8 | |
| 11674845575 | full employment | occurs when all labor is being used in the most efficient way possible | 9 | |
| 11674851408 | full production | all employed resources are used so that they provide the maximum possible satisfaction of our material wants | 10 | |
| 11693323928 | allocative efficiency | when the combo of goods being produced is at the point that society most desires; socially optimal price and quantity | 11 | |
| 11693341438 | productive efficiency | when a good is produced at the lowest cost and maximizing price | 12 | |
| 11693349310 | consumer goods | goods produced for public and individual consumption | 13 | |
| 11693369743 | capital goods | goods produced to produce other goods; machines | 14 | |
| 11693397422 | production possibilities curve | graph that shows all possible ways to achieve maximum profits from two goods | 15 | |
| 11693489390 | opportunity cost | what you give up when you make one choice instead of another; lower salary at new job, etc | 16 | |
| 11693505928 | laissez-faire capitalism | free market ideal created by Adam Smith, no government interference in economics; ex. United States, Canada | 17 | |
| 11693567016 | command economy | system where the government is in full control of the economy; ex. North Korea, Cuba | 18 | |
| 11693594325 | traditional economy | economic system that relies on cultural beliefs, traits, and customs to decide what goods and services the country produces and how their economy functions; ex. Haiti, African nations, etc | 19 | |
| 11693628574 | resource market | market where inputs such as labor, capital or raw materials are exchanged | 20 | |
| 11693695771 | product market | market where final goods and services are bought and sold | 21 | |
| 11693710914 | increasing opportunity cost | idea that as each additional unit is produced or bought, the opportunity cosy rises | 22 | |
| 11693726384 | constant opportunity cost | idea that opportunity cost does not change as more or less units are produced or bought | 23 | |
| 11693849429 | zero opportunity cost | occurs when there is no opportunity cost in a situation | 24 | |
| 11730662526 | circular flow model | model that explains the flow of goods and services through the labor and product markets- households and firms | 25 | |
| 11730669396 | economic growth | an increase in the GDP of a nation or business | 26 | |
| 11730673207 | scarcity | limited quantities when there is unlimited demand | 27 | |
| 11730678058 | comparative advantage | the ability of a firm or person to have a lower opportunity cost in comparison to another firm or individual; more productively efficient | 28 | |
| 11730688585 | absolute advantage | the ability to produce a good using fewer inputs than another producer | 29 | |
| 11730689276 | market | a group of buyers and sellers of a particular good or service | 30 | |
| 11730691531 | demand | willingness of a consumer and their ability to buy products | 31 | |
| 11730693924 | demand schedule | table that shows the relationship between the price of a good and the quantity demanded | 32 | |
| 11730700697 | elasticity formula | % change in quantity / % change in price | 33 | |
| 11730701344 | elastic demand | demand that is sensitive to change in price | 34 | |
| 11730706226 | inelastic demand | demand that is not affected by changes in price | 35 | |
| 11730712693 | demand curve | a graph that shows the amount of a product that would be bought at all possible prices in the market | 36 | |
| 11730715367 | law of demand | states that the quantity demanded varies inversely with its price | 37 | |
| 11730716513 | supply curve | graph of the relationship between the price of a good and the quantity supplied | 38 | |
| 11730718359 | law of supply | producers offer more of a good as its price increases and less as its price falls | 39 | |
| 11730753404 | equilibrium price and quantity | The point at which the supply and demand curves meet; profit maximizing point | 40 | |
| 11730766997 | factors that determine supply | GOSPIT 1. Government actions 2. Outlook 3. Size of industry 4. Price of related goods 5. Input costs 6. Technology | 41 | |
| 11747203129 | change in supply | supply curve shifts causing the price and quantity to increase or decrease depending on the direction of the shift | 42 | |
| 11747215193 | change in quantity supplied | the change in amount offered for sale in response to a change in price | 43 | |
| 11747218901 | total revenue test | a test that determines a product's elasticity by examining what happens to total revenue when price changes | 44 | |
| 11747226054 | diminishing marginal returns | occurs when marginal production levels increase, then decrease, and then go negative as each additional worker is added or product is produced | 45 | |
| 11747274611 | income and substitution effect | as your income goes up the want for substitute goes down and vice versa | 46 | |
| 11747277937 | normal good | a good thats demand increases as income increases | 47 | |
| 11747285392 | inferior good | a good thats demand decreases when income increases | 48 | |
| 11747290877 | factors that determine demand | POINT 1. Price of related products 2. Outlook 3. Income 4. Number of consumers 5. Tastes | 49 | |
| 11747320136 | change in demand | shift in the demand curve which can cause price and quantity to change | 50 | |
| 11747331646 | change in quantity demanded | causes movement of the demand curve | 51 | |
| 11747336482 | supply | amount of goods available | 52 | |
| 11747342491 | supply schedule | table that shows the relationship between the price of a good and the quantity supplied | 53 | |
| 11747348606 | surpluses | occurs when there is an excess of products etc.; supply is greater than demand | 54 | |
| 11747641464 | shortages | occurs when there are not enough products etc.; demand is greater than supply | 55 | |
| 11747651107 | price ceiling | maximum price for a good or service set by the government | 56 | |
| 11747657025 | price floor | minimum price for a good or service set by the government; ex- minimum wage | 57 | |
| 11747665029 | tax incidence | the division of the burden of a tax between buyers and sellers | 58 | |
| 11747668111 | subsidies | money given to a firm/company from the government to produce more of a product; can be per-unit or a lump-some | 59 | |
| 11763517763 | economic profit | total revenue minus total cost, including both explicit and implicit costs | 60 | |
| 11763526937 | normal profit | total profit equals total cost | 61 | |
| 11763537687 | business profit | sales revenue minus the cost of doing business | 62 | |
| 11763564970 | explicit cost | direct monetary cost; ex-rent, payroll, supplies, etc. | 63 | |
| 11763580701 | implicit cost | opportunity cost that is not monetary; ex- better pay at old job that you hate, etc | 64 | |
| 11763642869 | short run time | firms have fixed and variable costs, some resources may be limited or fixed, cannot expand, number of firms in industry is fixed, will produce at market price and profits can be positive, zero, or negative | 65 | |
| 11763774304 | long run time | firms do not have fixed costs, resources and firms in industry are unlimited, make normal profit (zero) | 66 | |
| 11763826517 | law of diminishing returns | states that with each input (worker, machine, etc.), production diminishes at an increasing rate | 67 | |
| 11763876247 | average revenue (AR) | total revenue divided by the quantity sold | 68 | |
| 11763887397 | total revenue (TR) | price x quantity | 69 | |
| 11763890953 | total product (TP) | total output produced by the firm | 70 | |
| 11763901411 | marginal product (MP) | the change in output with each unit of input (labor) | 71 | |
| 11763908652 | average product (AP) | TP/LABOR | 72 | |
| 11763922635 | average variable cost (AVC) | VC/Q | 73 | |
| 11763931118 | average total cost (ATC) | TC/Q | 74 | |
| 11763974157 | profit maximizing | MR=MC | 75 | |
| 11763978784 | MR=MC rule | rule that states a firm is maximizing profit when marginal revenue equals marginal cost | 76 | |
| 11764310645 | break-even point | the level of sales at which profit is zero; cost equals sales | 77 | |
| 11764320497 | elastic supply | high sensitivity of quantity supplied when price is increased or decreased; elastic band (stretchy) | 78 | |
| 11764515411 | inelastic supply | supply that is unresponsive to change in price | 79 | |
| 11764557362 | marginal cost | the cost of producing one more unit of a good | 80 | |
| 11764605818 | economies of scale | the costs of each unit of output decreases as the scale grows | 81 | |
| 11764756281 | diseconomies of scale | increases in cost per unit when output increases | 82 | |
| 11764777127 | pure (perfect) competition | competition where an industry sells identical products at the same, set price; sellers do not control the price, the market does | 83 | |
| 11764819316 | price taker | buyer/seller that accepts and has no control over the market price | 84 | |
| 11764834886 | shut down rule | firm should shut down if P| 85 | | |
| 11764944977 | Herfindahl-Hirshman Index (HHI) | measures the concentration of industry to avoid breaking any antitrust laws | 86 | |
| 11765037730 | pure monopoly | firm that sells a unique product or service; barriers to entry are extremely strong, almost no one can replace them | 87 | |
| 11765073139 | monopolistic competition | a market structure in which many companies sell products that are similar but not identical | 88 | |
| 11765170105 | oligopoly | A market structure in which a few large firms dominate a market; similar to a monopoly structure but there are several firms working together to dominate the industry | 89 | |
| 11765253686 | price maker | firm that makes their own price rather than taking the price of other competitors within the market | 90 | |
| 11765447050 | marginal revenue (MR) | the change in total revenue from selling one more unit of a product | 91 | |
| 11765673784 | short-run supply curve | portion of its marginal cost curve that lies above its average variable cost curve | 92 | |
| 11765847447 | long-run supply curve | found by examining the responsiveness of short‐run market supply to a change in market demand | 93 | |
| 11765920433 | constant cost industry | entry or exit of firms does not shift the cost curves of firms in the industry | 94 | |
| 11765938652 | increasing cost industry | entry of new firms shifts the cost curves for all firms upward | 95 | |
| 11765982002 | homogeneous oligopoly | an oligopoly with identical products | 96 | |
| 11766012274 | differentiated oligopoly | an oligopoly in which the firms produce a differentiated product | 97 | |
| 11766017056 | kinked demand curve | when a price within an oligopoly becomes "stuck" with an elastic range above and an inelastic range below the stuck price | 98 | |
| 11766158573 | collusive (monopoly) | a situation in which firms act together and in agreement to fix prices, divide a market, or otherwise restrict competition | 99 | |
| 11766163522 | cartel | a formal organization of producers that agree to coordinate prices and production | 100 | |
| 11766176793 | normal economic profit | P = ATC | 101 | |
| 11766179461 | accounting profit | total revenue - explicit costs | 102 | |
| 11766183031 | socially optimal price | P=MC; most allocatively efficient point | 103 | |
| 11766204928 | fair-return price | P=ATC | 104 | |
| 11766213564 | prisoner's dilemma | situation in which each of two players must choose between two scenarios to decide which one benefits them the most | 105 | |
| 11781055449 | nash equilibrium | a situation in which economic players interacting with one another each choose their best strategy given the strategies that all the other actors have chosen | 106 | |
| 11781084192 | derived demand | business demand that comes from the demand for consumer goods | 107 | |
| 11781108860 | marginal physical product (MPP) | the change in total output associated with one additional unit of input | 108 | |
| 11781171072 | marginal revenue product | the change in total revenue associated with one additional unit of input | 109 | |
| 11782064386 | marginal resource cost (MRC) | the additional cost caused by employing one more unit of the input | 110 | |
| 11782079998 | MRP=MRC rule | rule that states profit is maximized when the marginal revenue profit is equal to marginal resource cost | 111 | |
| 11782762389 | substitution and output effects | the idea as prices rises or incomes decrease consumers will replace more expensive items with less costly alternatives; price is above marginal cost, selling one more unit at going price will raise profit | 112 | |
| 11782857339 | least-cost combination of resources | the combination of resources (labor, capital, etc.) that has the least cost possible | 113 | |
| 11782967864 | profit maximizing combination of resources | the combination of resources (labor, capital, etc.) that is the most profit maximizing | 114 | |
| 11782989663 | marginal productivity theory of income | the idea that every factor of production is paid its equilibrium value of its marginal product | 115 | |
| 11783012229 | distribution | the way total output, income, or wealth is distributed among individuals or among the factors of production | 116 | |
| 11783770949 | nominal wages | wage levels based on current dollars | 117 | |
| 11783780194 | lorenz curve (gini coefficient) | graphical representation of the distribution of income or of wealth; the gini coefficient is a measure of income inequality in nations | 118 | |
| 11793519679 | mixed market system | modern economies are mixed where the means of production are shared between the private and public sectors | 119 | |
| 11793545154 | externalities (positive and negative) | a side effect of production of a good or service that creates a positive or negative side effect/spill over; ex: vaccinations (positive) or pollution (negative) | 120 | |
| 11793594521 | marginal social cost (MSC) | the cost to society of producing an extra unit of a good; occurs with externalities | 121 | |
| 11793605224 | marginal social benefit (MSB) | the additional benefit that society gains from consuming an extra unit of a good; occurs with externalities | 122 | |
| 11793615380 | public goods | an item consumed by society as a whole and not necessarily by an individual consumer; non-excludable and non-rivalrous | 123 | |
| 11793709513 | shared consumption | good or service where more than one person can simultaneously enjoy it | 124 | |
| 11793856445 | exclusion principle | excludes those who are unwilling or unable to pay for a private good; does not include public goods | 125 | |
| 11794316365 | transfer payments | payments by the government to households for which the government does not receive a new good or service in return; are facilitated by banks | 126 | |
| 11794363893 | personal income tax | percentage of total income deducted from an individual's paycheck; graduated tax | 127 | |
| 11794490841 | decreasing cost industry | long-run supply curve is downward sloping; | 128 | |
| 11794507190 | real wage | wage rate divided by the price level; adjust nominal wage for inflation | 129 | |
| 11794516628 | competitive labor market | market where a large number of firms demand a particular type of labor supplied nonunion workers | 130 | |
| 11794540220 | monopsony | market structure where there is only a single buyer of a good, service, or resource | 131 | |
| 11794556933 | static economy | an economy with constant output, input and other factors within the economy | 132 | |
| 11794726341 | corporate income tax | tax on corporate profits | 133 | |
| 11794731658 | sales tax | a tax on a sale of merchandise or services | 134 | |
| 11794797469 | macroeconomics | the study of economics on a larger scale; focuses on the bigger picture rather than small details studied in micro- needle in a haystack from 30000 ft analogy | 135 | |
| 11794823251 | what 3 questions must producers address before they distribute resources? | what, for who, and how? | 136 | |
| 11794964619 | production possibilities curve | graph that shows all possible ways to achieve maximum profits from two goods | 137 | |
| 11795562717 | traditional economy | economic system that relies on cultural beliefs, traits, and customs to decide what goods and services the country produces and how their economy functions; ex. Haiti, African nations, etc | 138 | |
| 11795572960 | command economy (communism) | system where the government is in full control of the economy; ex. North Korea, Cuba | 139 | |
| 11795597275 | market economy | economy that allocates resources through the decisions of many firms and households as they interact in markets for goods and services | 140 | |
| 11795616418 | explain Adam Smith's invisible hand metaphor | the metaphor states that the market is "an invisible hand" that guides demand and supply of the free market; wanted the government to leave the market alone | 141 | |
| 11796478385 | illustrate (draw) the circular flow of products and resources |  | 142 | |
| 11796494291 | product market | market where final goods and services are bought and sold | 143 | |
| 11796501723 | vertical merger | two or more firms involved in different stages of producing the same good or service | 144 | |
| 11796510157 | horizontal merger | the joining of two firms in the same industry | 145 | |
| 11796514422 | conglomerate | business combination merging more than three businesses that make unrelated products | 146 | |
| 11796530817 | sole proprietorship | business owned and operated by one person | 147 | |
| 11796538171 | limited liability company (LLC) | business organization in which the business (not the owner) is liable for the company's debts | 148 | |
| 11796605267 | s corporation | corporation taxed as though it were a partnership with restrictions on shareholders | 149 | |
| 11796615334 | certificate of deposit | certificate issued by a bank to a person depositing money for a length of time. | 150 | |
| 11796626900 | common stock | security that represents ownership in a corporation; allows members to have voting rights and a board of directors | 151 | |
| 11796659102 | preffered stock | stock that gives stockholders preference in earnings and other rights | 152 | |
| 11796750234 | mutual funds | investment program funded by shareholders that trades in diversified holdings and is professionally managed | 153 | |
| 11796761282 | bonds | a fixed-income security, is a debt instrument created for the purpose of raising capital; essentially loan agreements between the bond issuer and an investor | 154 | |
| 11796937800 | simple interest | interest earned only on the original principal amount invested | 155 | |
| 11796946186 | compound interest | interest calculated on both the principal and the accrued (accumulated) interest | 156 | |
| 11796960075 | explain the how excessive credit card debt may impact your credit score | excessive credit card debt can cause your credit score to drop because credit companies will see that you have a lot of debt and will be raise your interest rates on loans, credit cards, etc. | 157 | |
| 11798816765 | what is liability insurance and why it is important to have it? | insurance that provides protection against claims resulting from injuries and damage to people and/or property; it is important to have this type of insurance in case of accidents and damage; especially important for medical practitioners, business owners, etc. | 158 | |
| 11799515591 | credit unions | nonprofit cooperatives that offer the full variety of banking services to their members | 159 | |
| 11799524969 | aggregate demand | the sum of all the demand in the economy | 160 | |
| 11799528263 | aggregate supply | the sum of all the supply in the economy | 161 | |
| 11799546764 | gross domestic product (GDP) | The sum total of the value of all the goods and services produced in a nation | 162 | |
| 11799647847 | GDP formula | Y = C + I + G + NX | 163 | |
| 11799654929 | business cycles (what happens to unemployment in each cycle?) | GDP rises and unemployment shrinks during expansion phases, while reversing in periods of recession | 164 | |
| 11799682943 | consumer price index (CPI) | measures the cost of living for a typical American family | 165 | |
| 11815508912 | supply-side economics | states that economic growth can be most effectively created by lowering taxes and decreasing regulation | 166 | |
| 11815667844 | demand-side economics | states that economic growth can be most effectively created by raising taxes and increasing regulation | 167 | |
| 11815680935 | cost-push inflation | situation in which inflation rises due to increases in the cost of wages and raw materials | 168 | |
| 11815697315 | demand-pull inflation | occurs when price levels rise because of an imbalance in the aggregate supply and demand | 169 | |
| 11815709545 | how does Gross National Product differ from Gross Domestic Product? | GDP is the market value of all goods, services , and products in a nation within a specific period; GNP is the production of the citizens of one country only, not counting citizens of other countries living in the nation | 170 | |
| 11815774433 | structural unemployment | unemployment that occurs when a worker's skills are not good enough for a job or new technology; ex- older person not being able to keep up at a computer company | 171 | |
| 11815800482 | seasonal unemployment | unemployment caused by seasonal changes in the demand for certain kinds of labor; ex- not needing farm hands in the winter, etc. | 172 | |
| 11815811902 | frictional unemployment | unemployment that occurs when people take time to find a job; ex- finding a better job in a new location | 173 | |
| 11816387914 | cyclical unemployment | unemployment that rises during economic downturns and falls when the economy improves; ex-recession causing people to lose jobs | 174 | |
| 11816403251 | 3 tools of fiscal policy | 1. taxes 2. entitlement spending 3. government spending | 175 | |
| 11816440821 | regressive tax | tax that imposes a higher percentage rate of taxation on low incomes than on high incomes; rich people pay less than the poor | 176 | |
| 11816472215 | proportional tax | tax that imposes the same percentage of taxation on everyone, regardless of income | 177 | |
| 11816511878 | sales tax (how does it affect wealthy vs poor income groups?) | sales tax can be unfair to the poor because while it is a proportional tax, the amount it takes out means more to them than it does a wealthy person; ex- single mom buying medicine for child for $100 plus 6% tax vs wealthy person buying the same for their child- the money means more to the mom | 178 | |
| 11816831091 | purpose of the federal reserve | provide the nation with a safer, more flexible, and more stable monetary and financial system; controls banks across the nation | 179 | |
| 11816844529 | how many districts are in the fed? | 12 | 180 | |
| 11816861607 | 3 tools of monetary policy | 1. open market operations 2. reserve requirements 3. discount rate | 181 | |
| 11816880334 | federal open market operations (FOMO) | the buying and selling of government treasuries between the fed and commercial banks | 182 | |
| 11816884641 | tight money policy | monetary policy that reduces the money supply | 183 | |
| 11816887703 | easy money policy | monetary policy that increases the money supply | 184 | |
| 11816890753 | required reserves | reserves that a bank is legally required to hold, based on its checking account deposits | 185 | |
| 11816968551 | discount rate | the interest rate on the loans that the fed makes to banks | 186 | |
| 11816974472 | fiat money | money that has value because the government has ordered that it is an acceptable means to pay debts | 187 | |
| 11817066510 | commodity money | objects that have value in themselves and that are also used as money | 188 | |
| 11817096425 | the 3 functions of money | 1. medium of exchange 2. unit of account 3. store of value | 189 | |
| 11817458875 | quota (as it relates to international trade) | a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period | 190 | |
| 11817501724 | european union (EU) | the world's largest common market, composed of 28 European nations; all use the common currency of the euro | 191 | |
| 11817577816 | NAFTA (North American Free Trade Agreement) | an agreement for free trade between the United States, Canada, and Mexico | 192 | |
| 11817597532 | foreign exchange market | a market for converting the currency of one country into that of another country; ex- USD to CAD | 193 | |
| 11817747875 | exchange rate | the measure of how much one currency is worth in relation to another | 194 |
