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Study sets matching "principles macroeconomics"

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Study sets matching "principles macroeconomics"

50 terms
Principles of Macroeconomics
The rationality assumption says that
Which of the following statements conc…
A scientist who is studying earthquake…
The most basic concept of economics is
people do not intentionally make decisions that would leave t…
Positive statements are concerned with what is, while normati…
failing to hold all other things constant.
scarcity
The rationality assumption says that
people do not intentionally make decisions that would leave t…
Which of the following statements conc…
Positive statements are concerned with what is, while normati…
18 terms
Principles of Macroeconomics
Scarcity
Economics
Macroeconomics
Microeconomics
a situation in which there is not enough of a resource to mee…
the social science that seeks to understand the choices peopl…
the branch of economics that studies large-scale economic phe…
The branch of economics that studies the choices of individua…
Scarcity
a situation in which there is not enough of a resource to mee…
Economics
the social science that seeks to understand the choices peopl…
111 terms
Principles of Macroeconomics
Unemployment
Law of supply
Supply curve always goes
Gnp stands for
Does not have a job and wants one
An increase in the price of a good leads to an increase in qu…
Upward
Gross national product
Unemployment
Does not have a job and wants one
Law of supply
An increase in the price of a good leads to an increase in qu…
20 terms
Macroeconomics - Principles
income must equal
3 uses of GDP data
GDP
GDP (Y) =
expenditure - for every buyer there must be a seller
1. measure of living standards (gdp per capita compared to ot…
the market value of all final goods and services produced wit…
C + I + G + NX
income must equal
expenditure - for every buyer there must be a seller
3 uses of GDP data
1. measure of living standards (gdp per capita compared to ot…
135 terms
principles of macroeconomics
depends upon the preferences of society
specialization and trade are beneficia…
Market failure
final goods and services should be cou…
the optimal or best combination of output for any society
1) scarce resources are utilized more efficiently... 2) the outp…
when the competitive market system does not allocate resource…
to avoid multiple counting in national income accounts
depends upon the preferences of society
the optimal or best combination of output for any society
specialization and trade are beneficia…
1) scarce resources are utilized more efficiently... 2) the outp…
11 terms
Principles of Macroeconomics
scarcity
economics
microeconomics
macroeconomics
the limited nature of society's resources
the study of how people allocate their limited resources to s…
the study of the individual units that make up the economy
the study of the overall aspects and workings of an economy,…
scarcity
the limited nature of society's resources
economics
the study of how people allocate their limited resources to s…
11 terms
Principles of Macroeconomics
Macroeconomics
Ceteris Paribus
Adams Smith - The Wealth of Nations
Economic Models: Trade-Offs and Trade
Focuses on the broader economic issues confronting the nation…
All other relevant factors held constant
-Suggested a free market economic theory.... -the "invisible han…
Three main models-stylized approach-models are meant to be de…
Macroeconomics
Focuses on the broader economic issues confronting the nation…
Ceteris Paribus
All other relevant factors held constant
50 terms
Principles of Macroeconomics
The rationality assumption says that
Which of the following statements conc…
A scientist who is studying earthquake…
The most basic concept of economics is
people do not intentionally make decisions that would leave t…
Positive statements are concerned with what is, while normati…
failing to hold all other things constant.
scarcity
The rationality assumption says that
people do not intentionally make decisions that would leave t…
Which of the following statements conc…
Positive statements are concerned with what is, while normati…
199 terms
Principles of Macroeconomics
Microeconomics
Macroeconomics
Who is Keynes?
Great Depression
-Object of analysis is a single market... -Behavior of individua…
-Object of analysis is overall economy... -Behavior of aggregate…
-The General Theory of Employment, Interest and Money... -Examin…
-High unemployment, low production... -Stock market crash
Microeconomics
-Object of analysis is a single market... -Behavior of individua…
Macroeconomics
-Object of analysis is overall economy... -Behavior of aggregate…
8 terms
Principles of Macroeconomics
Diminishing Returns
Optimization
Rationality
Insatiable Wants
If inputs are increased at a constant rate, outputs will incr…
The aim of the consumer is to maximize his satisfaction.... Cons…
People are able make logical choices given the small amount o…
People will always want more
Diminishing Returns
If inputs are increased at a constant rate, outputs will incr…
Optimization
The aim of the consumer is to maximize his satisfaction.... Cons…
287 terms
Principles of Macroeconomics
[1] constant
[1] fallacy of false clause
[1] opportunity cost
[1] scarcity
Something whose value does not change.
The incorrect assumption that one event causes another becaus…
The value of the best alternative forgone in making any choice.
The condition of having to choose among alternatives.
[1] constant
Something whose value does not change.
[1] fallacy of false clause
The incorrect assumption that one event causes another becaus…
50 terms
Principles of Macroeconomics 3
The relationship between the quantity…
The AD (Aggregate Demand) curve slopes…
The tendency for increases in the pric…
The ____________ effect on Aggregate D…
Aggregate.... Aggregate Demand (AD) is a schedule, graphically…
Down. ... The downward slopes indicates that the lower the pric…
Wealth. ... Spending is less because the rise in prices will ma…
Substitution. ... When current prices change it does not affect…
The relationship between the quantity…
Aggregate.... Aggregate Demand (AD) is a schedule, graphically…
The AD (Aggregate Demand) curve slopes…
Down. ... The downward slopes indicates that the lower the pric…
8 terms
Macroeconomics Principles
Gains from Trade
Markets move toward equilibrium
Resources should be used efficiently t…
Markets usually lead to equilibrium an…
By dividing tasks and trading, two people can get more of wha…
Quantity Demanded = Quantity Supplied
Making everyone better off without making others worse
people normally take opportunities for mutual gain
Gains from Trade
By dividing tasks and trading, two people can get more of wha…
Markets move toward equilibrium
Quantity Demanded = Quantity Supplied
Principles of macroeconomics
Economics
Factors of production
Economic growth
Scarcity problem
The stuydy of how to make best use of resources
Capital, labor, entrepreneurship and land
When the ppc shifts rightward
The ppc is negatively sloped
Economics
The stuydy of how to make best use of resources
Factors of production
Capital, labor, entrepreneurship and land
12 terms
Principles of Macroeconomics
Demand Curve
Quantity Demanded
Consumer Surplus
Total Consumer Surplus
Function that shows the quantity demanded at different prices.
The quantity that buyers are willing and able to buy at a par…
The difference between the maximum price a costumer is willin…
Is measured by the area beneath the demand curve and above th…
Demand Curve
Function that shows the quantity demanded at different prices.
Quantity Demanded
The quantity that buyers are willing and able to buy at a par…
29 terms
principles of macroeconomics
1
2
3
4
you can't have it all. choices must be made, and choices have…
everything is relative
in the short run, the more of something you make, the more (p…
people have goals, and tend to be rational in pursuit of thos…
1
you can't have it all. choices must be made, and choices have…
2
everything is relative
17 terms
Principles of Macroeconomics
Real GDP
Nominal GDP
US Economy in the Past 200 years
Growth Rate (definition)
Gross Domestic Product adjusted for changes in prices... Quantit…
Quantity x Price
increased
rate at which a nation's Gross Domestic product (GDP) changes…
Real GDP
Gross Domestic Product adjusted for changes in prices... Quantit…
Nominal GDP
Quantity x Price
63 terms
Principles of Macroeconomics
Economics
Economics is a
No choices are needed
In large measure it is the study of how
Is the study of how individuals and societies choose to alloc…
Behavioral, or social science
If unlimited resources
Individuals make choices
Economics
Is the study of how individuals and societies choose to alloc…
Economics is a
Behavioral, or social science
12 terms
Macroeconomic Principles
Scarcity
Independent Relationship
Choice
Socialization
Human want exceeds the availability of time, goods, and resou…
A zero association between two variables. Change in either af…
...
The process of how individuals develop socially appropriate b…
Scarcity
Human want exceeds the availability of time, goods, and resou…
Independent Relationship
A zero association between two variables. Change in either af…
56 terms
Principles of Macroeconomics
Normal Good
Market
Demand Curve
Law of Demand
A good for which, other things equal, an increase in income l…
A group of buyers and sellers of a particular good or service
A graph of the relationship between the price of a good and t…
The claim that, other things equal, the quantity demanded of…
Normal Good
A good for which, other things equal, an increase in income l…
Market
A group of buyers and sellers of a particular good or service
61 terms
Principles of Macroeconomics
Microeconomics
Macroeconomics
Market
Competitive Market
Study of households and firms ... -make decisions... -interact in m…
Study of economy-wide phenomena and of the structure and perf…
A group of buyers and sellers of a particular good or service
A market in which there are many buyers and many sellers so t…
Microeconomics
Study of households and firms ... -make decisions... -interact in m…
Macroeconomics
Study of economy-wide phenomena and of the structure and perf…
82 terms
Principles of Macroeconomics
Scarcity
Tradeoffs
Opportunity Costs
Incentives
-Limited resources
-A balance achieved between two desirable but incompatible fe…
-What must be given up to obtain something that is desired... -T…
-Inducement or supplemental reward that serves as a motivatio…
Scarcity
-Limited resources
Tradeoffs
-A balance achieved between two desirable but incompatible fe…
17 terms
Principles of Macroeconomics
Economics (definition)
Economics
Macroeconomics
Microeconomics
how people and culture allocate scarce resources
is the study of who gets what
large economies (nation trade)
small economies (labor, housing)
Economics (definition)
how people and culture allocate scarce resources
Economics
is the study of who gets what
100 terms
Principles of Macroeconomics
Land refers to the naturally occurring…
Opportunity Cost is the value of the n…
An economic accident is a benefit or a…
Economists assume individuals behave r…
True
True
False
True
Land refers to the naturally occurring…
True
Opportunity Cost is the value of the n…
True
109 terms
principles of macroeconomics
micro economics studies?
macro studies
Macro problems
macro problems
economic decisions making by individual people & businesses…
economic forces that determine the size of the economy, what…
periods of poor economic performances
unemployment, trade deficit, inflation
micro economics studies?
economic decisions making by individual people & businesses…
macro studies
economic forces that determine the size of the economy, what…
25 terms
Principles of Macroeconomics
production possibility frontier
unattainable
outward
comparative advantage
When economists want to describe how much an economy can prod…
points lying beyond the PPF represent outcomes _______ with t…
Economic growth is depicted in the production possibilities m…
In order to have a ______ ______ in the production of clothin…
production possibility frontier
When economists want to describe how much an economy can prod…
unattainable
points lying beyond the PPF represent outcomes _______ with t…
16 terms
Principles of Macroeconomics
Normative Economics
Marginal Cost
Efficient Markets
The Concerns of Economics include:
Examines the outcomes of economic systems without making judg…
The cost of producing one more unit
There are many people searching for profit opportunities and,…
The distribution of income and wealth. Poverty. Employment by…
Normative Economics
Examines the outcomes of economic systems without making judg…
Marginal Cost
The cost of producing one more unit
91 terms
Principles of Macroeconomics
Economy-wide phenomena.
There are many sellers.... Buyers must ac…
There is movement along a given demand…
The demand curve shifts to the right.
What do macroeconomists study?
What are characteristics of a perfectly competitive market?
What happens when the price of a good or service changes?
What happens if buyers become more willing and able than befo…
Economy-wide phenomena.
What do macroeconomists study?
There are many sellers.... Buyers must ac…
What are characteristics of a perfectly competitive market?
24 terms
Principles of Macroeconomics
Malthusian Dilemma
Capital deepening
Diminishing returns
Paul Krugman
Thomas Malthus, 1826; pop. increasing faster than food supply…
An economy where capital per worker is increasing (ie. throug…
Yield rate that after a certain point, fails to increase prop…
Argued that 'Asian Miracle' (rapid growth of Asian tigers) wa…
Malthusian Dilemma
Thomas Malthus, 1826; pop. increasing faster than food supply…
Capital deepening
An economy where capital per worker is increasing (ie. throug…
85 terms
Principles of Macroeconomics
Positive economics
Normative economics
Ceteris paribus
Efficiency
describes what exists and how it works
analyzes outcomes of economic behavior and prescribes courses…
a device used to analyze the relationship b.t. two variables…
allocative efficiency -- meeting people's demands at the leas…
Positive economics
describes what exists and how it works
Normative economics
analyzes outcomes of economic behavior and prescribes courses…
8 terms
principles of macroeconomics
The purchase by a foreign government o…
What is the impact of the decline in t…
If the GDP deflator rises from 185 to…
In the base year
Net exports
decreases GDP and increases in the well-being of a typical wo…
2.7%
Nominal GDP = Real GDP
The purchase by a foreign government o…
Net exports
What is the impact of the decline in t…
decreases GDP and increases in the well-being of a typical wo…
75 terms
Principles of Macroeconomics
In 2011 a country had a real GDP of 13…
In 2010 a country had a nominal GDP of…
What is the nominal GDP, real GDP, and…
What's the nominal, real, and GDP defl…
GDP Deflator '11- 110.... GDP Deflator '12- 100*(17.8/14.24)=125…
GDP Deflator '10- 100*(6/5)= 120... GDP Deflator '11- 100*(6.5/5…
Nom- 4100+5010= 900... Real- 5100+5010= 1000... Deflator- 100*(…
Nom- 590+5015= 1200... Real- 590+5015= 1200... Deflator- 100*(1…
In 2011 a country had a real GDP of 13…
GDP Deflator '11- 110.... GDP Deflator '12- 100*(17.8/14.24)=125…
In 2010 a country had a nominal GDP of…
GDP Deflator '10- 100*(6/5)= 120... GDP Deflator '11- 100*(6.5/5…
30 terms
Principles of Macroeconomics
Economist believe that scarcity forces…
Inflation and unemployment are example…
The statement " The inflation rate is…
Bill has $10 to spend on a Superman, B…
make choices
True
A normative statement- its an opinion
the Batman Tshirt.
Economist believe that scarcity forces…
make choices
Inflation and unemployment are example…
True
20 terms
Principles of Macroeconomics
What are the two assumptions of Macroe…
What are the three assumptions economi…
Why do models exist?
What are opportunity costs?
1) make things easier... 2) do not meaningfully affect conclusio…
1) self-interested... 2) rational ... I. prefer more to less (ex.…
to organize our thinking
1) Value of the next best alternative... --what you gave up to d…
What are the two assumptions of Macroe…
1) make things easier... 2) do not meaningfully affect conclusio…
What are the three assumptions economi…
1) self-interested... 2) rational ... I. prefer more to less (ex.…
22 terms
Principles of Macroeconomics
What is elasticity?
What is the price elasticity of demand?
What is true for demand if it is said…
What is true for demand if it is said…
a measure of the responsiveness of the quantity demanded or q…
a measure of how much the quantity demanded of good responds…
the quantity demanded responds substantially to changes in th…
the quantity demanded responds only slightly to changes in th…
What is elasticity?
a measure of the responsiveness of the quantity demanded or q…
What is the price elasticity of demand?
a measure of how much the quantity demanded of good responds…
12 terms
Principles of Macroeconomics
What is a price ceiling?
What is a price floor?
What does it mean if a price ceiling i…
What does it mean if a price ceiling i…
a legal maximum on the price at which a good can be sold; the…
a legal minimum on the price at which a good can be sold; the…
the equilibrium naturally falls below the price ceiling or th…
the equilibrium price is higher than the price ceiling and a…
What is a price ceiling?
a legal maximum on the price at which a good can be sold; the…
What is a price floor?
a legal minimum on the price at which a good can be sold; the…
29 terms
Principles of Macroeconomics Chapter 9
The Business Cycle
Peak
Recession
Trough
Alternating rises and declines in the level of economic activ…
The economy is near or at full employment and the level of re…
A period of decline in total output, income, and employment.…
Output and employment "bottom out" at their lowest levels. Th…
The Business Cycle
Alternating rises and declines in the level of economic activ…
Peak
The economy is near or at full employment and the level of re…
99 terms
Principles of Macroeconomics CLEP
South east
amount by which beef production decrea…
The aggregate supply curve will shift…
improved productivity
An economy that is fully employing all its productive resourc…
Assume that land can be used either for producing grain or fo…
Which of the following will occur as a result of an improveme…
Increases in real income per capita are made possible by
South east
An economy that is fully employing all its productive resourc…
amount by which beef production decrea…
Assume that land can be used either for producing grain or fo…
17 terms
Principles of Macroeconomics Chapter 10
45 Degree Line
Consumption Schedule
Saving Schedule
Break-even Income
A reference line. At each point on the 45 degree line, consum…
The relationship between consumption expenditures and income…
The relationship between saving and income for the household…
This is the income level at which households plan to consume…
45 Degree Line
A reference line. At each point on the 45 degree line, consum…
Consumption Schedule
The relationship between consumption expenditures and income…
8 terms
Macroeconomic Principles
Consumer Surplus
Consumer Price Index
Steps in Calculating CPI
Inflation Rate
the amount a buyer is willing to pay for a good minus the amo…
a measure of the overall cost of good and services bought by…
1) Fix the Basket... 2)Find the Prices... 3)Compute the Basket's Co…
the percentage change in the price index from the preceding p…
Consumer Surplus
the amount a buyer is willing to pay for a good minus the amo…
Consumer Price Index
a measure of the overall cost of good and services bought by…
152 terms
Principles of Macroeconomics 2105 Test 1
scarcity
economics
10 Principles of Economics
People face tradeoffs
the limited nature of society's resources
the study of how society manages its scarce resources
1.People face tradeoffs... 2. The Cost of something is what you…
There is no such thing as a free lunch
scarcity
the limited nature of society's resources
economics
the study of how society manages its scarce resources
99 terms
Principles of Macroeconomics CLEP
South east
amount by which beef production decrea…
The aggregate supply curve will shift…
improved productivity
An economy that is fully employing all its productive resourc…
Assume that land can be used either for producing grain or fo…
Which of the following will occur as a result of an improveme…
Increases in real income per capita are made possible by
South east
An economy that is fully employing all its productive resourc…
amount by which beef production decrea…
Assume that land can be used either for producing grain or fo…
131 terms
Principles of Macroeconomics CLEP Prep
Savings accounts
Stagflation
That wages & prices are flexible & the…
The purchase of a classic car
All of the following are included in the definition of the M1…
Suppose that a negative supply shock increases the price leve…
Classical economists believe which of the following?
Which of the following would not be counted in the calculatio…
Savings accounts
All of the following are included in the definition of the M1…
Stagflation
Suppose that a negative supply shock increases the price leve…
36 terms
Principles of Macroeconomic
What is a market?
Who determines the demand for a product?
Who determines the supply of a product?
What are some highly organized markets?
a group of buyers and sellers of a particular good or service
the buyers determine the demand
the sellers determine the supply
markets for many agricultural commodities are highly organize…
What is a market?
a group of buyers and sellers of a particular good or service
Who determines the demand for a product?
the buyers determine the demand
50 terms
Principles of Macroeconomics-Midterm 1
Microeconomics
Macroeconomics
Economics is...
What was Adam Smith's influential econ…
The study of how individual firms and households make decisio…
The study of economy-wide phenomena, focusing on sectors of t…
The study of choice; how individuals and societies choose to…
An inquiry into the nature and causes of the wealth of nations
Microeconomics
The study of how individual firms and households make decisio…
Macroeconomics
The study of economy-wide phenomena, focusing on sectors of t…
83 terms
Principles of Macroeconomics: TEST 1
REAL GROSS DOMESTIC PRODUCT
RESEARCH AND DEVELOPMENT
MARKET SHARE
MACROECONOMICS
Gross domestic product that has been adjusted to eliminate th…
generating and experimenting with ideas related to new produc…
a company's percentage of the total industry sales for a spec…
the study of economy-wide phenomena, including inflation, une…
REAL GROSS DOMESTIC PRODUCT
Gross domestic product that has been adjusted to eliminate th…
RESEARCH AND DEVELOPMENT
generating and experimenting with ideas related to new produc…
11 terms
Macroeconomic Principles
What is the difference in the distribu…
What happens to the quantity sold of a…
How do you measure the revenue the gov…
What does the government do with the r…
There is no difference how the taxes are distributed no matte…
The quantity sold of a good is less than it would be if there…
size of the tax times the quantity sold of the good
the government uses the tax revenue to provide services, such…
What is the difference in the distribu…
There is no difference how the taxes are distributed no matte…
What happens to the quantity sold of a…
The quantity sold of a good is less than it would be if there…
17 terms
Principles of Macroeconomics: Chapter 1
Scarcity
Economics
Efficiency
Equality
The limited nature of society's resources.
Study of how society manages its scarce resources.
The property of society getting the most it can from it's sca…
The property of distributing economic prosperity uniformly am…
Scarcity
The limited nature of society's resources.
Economics
Study of how society manages its scarce resources.
44 terms
Principles of Macroeconomics, Chapter 6
national income and product accounts
gross domestic product (GDP)
final goods
intermediate goods
data collected and published by the government describing the…
the total market value of all final goods and services produc…
goods and services produced for final use
goods produced by one firm for use in production by another
national income and product accounts
data collected and published by the government describing the…
gross domestic product (GDP)
the total market value of all final goods and services produc…
20 terms
Principles of Macroeconomics, Chapter 5
aggregate behavior
sticky prices
business cycle
aggregate output
the behavior of all firms and households together
prices that do not always change rapidly in response to surpl…
cycle of short-term ups and downs in an economy
total quantity of goods and services produced in an economy i…
aggregate behavior
the behavior of all firms and households together
sticky prices
prices that do not always change rapidly in response to surpl…
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