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Economics Final Review Mr. Rogers Millennium 2013
Terms in this set (68)
study of making,buying, and selling of goods and services.
The cost of a missed opportunity
all natural resources used to produce goods
any person devoted to a task
human made reaources
someone who creates a product or a service.
it is limited quantities but a unlimited amount of needs
what is the difference between scarcity and shortage?
more people demanding a product( not enough supply)
What is PPC curve?
The production possibility curves is a hypothetical representation of the amount of two different goods that can be obtained by shifting resources from the production of one, to the production of the other.
Why dont economists deal with specific values?
They all look out for self interest
an economy that runs by habit,custom,and ritual.
an economy that runs on what, how, and for questions when making decisions.
people in Firms act on their own best interest.
tax on imports
a limit on imports to a specific number
what does US gain from trade?
get goods we
wouldnt have, or made, and getting them cheaper
if you make more you are an absolute advantage
produce it at a lower oportunity cost.
doing what you do best
frictional reserve banking
the banks only hold a small percentage
dif. between tight and lose monetary policy
tight: is used when inflation is high
loose: inflation is low but gdp is slow at growing
what is a recession?
6 months of growth thats less than 3%
how can inflation be controlled?
with monetary policy, sell bonds, shred money
3 contractionary actions
tight monetary policy,increase taxes,decrease spending
expansionary actions gov takes
loose monetary policy , cut
taxes, increase spending
controlling money supply with reserve requirement
value of all final goods and services produced in a country in a year.
consumer price index.measures inflation
% of people who want to work but cant find a job.
leading , coincident, and lagging indicators.
leading:crystal ball of economics
lagging :lag behind( after)
how can business reduce risks
better managers and be diverse
personal income vs disposable
personal : total earnings
what is inflation
it is higher prices so you cannot purchase as much
national income accounting
when workers unite for better wages, benefits, and working conditions.
conditions for using an arbitrator?
binding, both sides agree
factors that can change wages
education,gender,location, and age.
experienced, with years of
requires some training
very little training
why do businesses use marketing?
to convince people to buy things
how do you spot oligopolies
few producers many buyers
how do you spot monopolies?
what is a monopoly
one industry that controlls market from top to bottom
competitive markets characteristics
advertising, many buyers as well as sellers.
many buyers, many sellers,undifferentiated
the amount of product that would be offered for sale
desire and ability to buy a product
factors that affect demand
consumer expect.,change in population,change in comsumer taste, change in compliments and substitutes
is the point where quantity supplied and quantity demanded are equal.
input costs change, government regulation, future expectations, change in tech, disasters man made or natural, number if suppliers
occurs when consumers react to an increase in a goods price by consuming less of that good and more of others.
model that is used to predict future economic events.
law of diminishing marginal utility.
a person increases consumption of a product while keeping consumption of all other products constant.
a product or service that satisfies the need of a consumer that another product or service fullfills.
a good that has a negative elasticity of demand
an economic system combining private and public enterprise. ** U.S IS A MIXED ECONOMY
happens when a persom changes his/her consumption of goods and services as a result of change in income.
demand for a good that consumers will buy despite of price increase
demand for a good that us very sensitive to change in price
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