economics assesment Flashcards

14120818	demand	the willingness and ability to buy or consume something	0
14120819	law of demand	as price goes up, quantity demanded goes down.	1
14121357	3 factors that influence demand	sustitution effect, real income effect, diminishing marginal utility	2
14121358	substitution effect	as the price of one good or service goes up, quantity demanded for all of its substitutes goes up.	3
14121359	real income effect	as prices rise and your income stays the same, quantity demanded for all goods or services goes down.	4
14121360	diminishing marginal utility	assuming all things stay the same with each additional unit consumed, we recieve less satisfaction then the previous unit consumed.	5
14127294	ceteris paribus	all things held constant	6
14127295	demand curve	the graphical representation of a demand scheduale	7
14127296	only shows how we respond to changes in price	demand curve	8
14127297	market demand	sum of all individual demands in the market	9
14127298	2 causes in shifts	income and expectations	10
14127299	income	ex) normal gods and inferior	11
14127300	normal goods	goods that people buy more of as income increases	12
14127301	inferior goods	goods that people buy less of as income increases	13
14127302	2 factors influencing supply	incentive for greater profit and market entry	14
14127303	what is the largest factor influencing elasticity	time	15
14127304	in the longe run supply becomes more...	elatic	16
14127305	in the short run supply becomes more...	inelastic	17
14127306	GDP	the total dollar value of goods and services produced by the US in a year	18
14127307	inflation	general increase in price levels	19
14127308	real gdp	constant prices	20
14127309	nominal gdp	currrent prices	21
14185657	what do you use to measure inflation	consumer price index	22
14185658	4 limitations of GDP	negative externalities, underground activities, nonmarket activities, quality of life	23
14185659	aggregate	sum of all of the parts	24
14185660	total cost	fixed costs + variable costs	25
14185661	marginal cost	additional cost of producing one more unit	26
14185662	if revenue is >operating costs should you stay open or close down	stay open	27
14185663	if revenue is < operating costs should you stay open or close down	close down	28
14185664	2 tools of fiscal policy	taxes, spending	29
14185665	entitlement programs	medicare, medicaid, social security	30
14186325	3 tools of monetary policy	reserve requirement ratio, discount rate, open market opperations	31
14186326	RRR	percent of deposits banks must keep on hand	32
14186327	examples of RRR	expansionary and contractionary monetary policy	33
14186328	discount rate	intrest banks pay when they borrow money	34
14186329	open market opperations	buying and selling of government securities	35
14186330	porportional	every one pays the same percent of their income	36