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All Over Based on Notes Flashcards | StudBud
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All Over Based on Notes
Active Funds
Market Demand
All Over Based on Notes
80 terms
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StudBud Administration
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233 plays
ECON 1500 USU Randy Simmons
Flashcards
80 cards
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Practice quiz
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Questions
80
Answers
1
Market Demand
the demand by all consumers of a given good or service
Good that goes together with another good
Consumers buy more of a good when the price decreases
Good that can be used in place of another
2
Active Funds
Markets contain all the information that you need
Run by managers who charge fees
Gets lucks and has insider information
Simply tries to mimic a broad stock market index. Such as S&P 500
3
Insolvent Institution
The fed sells longer-term government bonds
liabilities are greater than assets
The fed buys longer-term government bonds
risk that failure of one financial institution can bring down others
4
Low hanging fruit principle is the process of using resources with lowest opportunity cost first.
True
False
5
Natural Unemployment
scarcity of information and short-term
correlated with the business cycle
caused by shocks and long-term
rate of structural unemployment + Frictional unemployment
6
Substitute
Good that goes together with another good
the demand by all consumers of a given good or service
Consumers buy more of a good when the price decreases
Good that can be used in place of another
7
Structural Unemployment
scarcity of information and short-term
caused by shocks and long-term
correlated with the business cycle
rate of structural unemployment + Frictional unemployment
8
Efficient Market Hypothesis
Markets contain all the information that you need
Run by managers who charge fees
Simply tries to mimic a broad stock market index. Such as S&P 500
Gets lucks and has insider information
9
Market Equilibrium Price
The price at which consumers are willing to buy same that producers supply
None of the Above
All of the Above
The intersection of supply and demand curves
10
Factors of Production
Technological Knowledge
Physical Capital
Human Capital
All of the Above
11
Moral Hazard occurs when banks take on too much risk hoping FED bails them out
False
True
12
Risk-Return Trade-Off
high risk equals high return
divide money into different investments in different areas
None of the Above
looks for patterns in stock and asset prices
13
Specialization causes less to get done
False
True
14
An economic model
A complex version of reality to analyze real-world economic situations
A very detailed version to show all the details
A simplified version of reality to analyze real-world economic situations
None of the Above
15
Growth disasters are Argentina and South Korea
False
True
16
GDP per capita
GDP per person
Black Market
The market value of all final goods w/i a country w/i a year
Natural Resources
17
Frictional Unemployment
caused by shocks and long-term
correlated with the business cycle
rate of structural unemployment + Frictional unemployment
scarcity of information and short-term
18
Rational Ignorance
Cheer for their team
study of political behavior using the tools of economics
Emotion
the benefits of being informed are less than the costs of being informed
19
Producer Surplus
Amount a consumer profits
Amount a producer profits
Tendency of suppliers to offer more of a good at a higher price
Productivity improvements from technological progress
20
Equilibrium
there is efficient trade
Market clearing price
Quantity demanded is greater than quantity supplied
Quantity supplied is greater than quantity demanded
21
M x V = P x Y Quantity value of money
False
True
22
Tradeoffs are Everywhere
None of the Above
Every decision creates tradeoffs
All of the Above
There is a scarcity of resources that need to be allocated properly
23
Discouraged
Ready for finals to be over
Rather have a full-time position
Looked for a job in last year and has given up
adults who don't have a job but are looking for work
24
Liquid Asset
bank only holds a fraction of deposits in reserve
amount the money supply expands
An asset that can be converted w/o loss of value
ratio of reserves to deposits
25
Catching-Up growth
Growth due to capital accumulation
Law of diminishing Returns
Growth due to ideas
How much more do we get by adding 1 more unit of capital
26
Law of Supply
Productivity improvements from technological progress
Amount a consumer profits
Amount a producer profits
Tendency of suppliers to offer more of a good at a higher price
27
Cutting Edge Growth
Growth due to capital accumulation
How much more do we get by adding 1 more unit of capital
Growth due to ideas
Law of diminishing Returns
28
What is an example of an institution?
Invisible Hand
Meeting
All of the Above
Walmart
29
Shortage
Quantity supplied is greater than quantity demanded
there is efficient trade
Market clearing price
Quantity demanded is greater than quantity supplied
30
Money Multiplier (Select Multiple)
bank only holds a fraction of deposits in reserve
1/RR=MM
amount the money supply expands
ratio of reserves to deposits
31
Consumer Surplus
Amount a consumer profits
Tendency of suppliers to offer more of a good at a higher price
Productivity improvements from technological progress
Amount a producer profits
32
Currency
regulate the US money supply
checking or debit accounts
widely accepted means of payment
paper bills and coins
33
LRAS
Solow Growth Rate
Doesn't shift unless there is a shock
All of the Above
Long-run
34
Underemployed
adults who don't have a job but are looking for work
Looked for a job in last year and has given up
Rather have a full-time position
I am tired
35
Institutions Matter
Provide incentives to save and invest
None of the above
Provide nothing to save and invest
They don't matter
36
Reasons to vote (Select Multiple)
the benefits of being informed are less than the costs of being informed
Emotion
study of political behavior using the tools of economics
Cheer for their team
37
Efficiant Outcome
Quantity supplied is greater than quantity demanded
Market clearing price
Quantity demanded is greater than quantity supplied
there is efficient trade
38
Price Floor
Minimum price allowed by law
None of the Above
A price ceiling placed on rent
Maximum price allowed by law
39
Public Choice
the benefits of being informed are less than the costs of being informed
Emotion
study of political behavior using the tools of economics
Cheer for their team
40
Warren Buffet
Run by managers who charge fees
Gets lucks and has insider information
Simply tries to mimic a broad stock market index. Such as S&P 500
Markets contain all the information that you need
41
Diversification
divide money into different investments in different areas
looks for patterns in stock and asset prices
high risk equals high return
None of the Above
42
Quantitative tightening
risk that failure of one financial institution can bring down others
liabilities are greater than assets
The fed buys longer-term government bonds
The fed sells longer-term government bonds
43
LRAS shifters (Select Multiple)
Disease
War
Oil
Money
44
Money illusion is when people mistake changes in nominal prices for changes in real price
False
True
45
Checkable Deposits
paper bills and coins
regulate the US money supply
checking or debit accounts
widely accepted means of payment
46
Fractional Reserve Banking
An asset that can be converted w/o loss of value
amount the money supply expands
ratio of reserves to deposits
bank only holds a fraction of deposits in reserve
47
Price Ceiling
A price ceiling placed on rent
Maximum price allowed by law
None of the Above
Minimum price allowed by law
48
Marginal Product of Capital
Growth due to capital accumulation
Growth due to ideas
Law of diminishing Returns
How much more do we get by adding 1 more unit of capital
49
A = Population x Incentive x Ideas per hour
False
True
50
Supply Curve Shifters (Select Multiple)
Changes in inputs, Taxes
Taxes, Entry, and exit of producers, technological innovations
Tastes, Expectations, Technological innovations
Changes in Opportunity costs, Expectation
51
Not included in GDP (Select Multiple)
Natural Resources
Black Market
The market value of all final goods w/i a country w/i a year
GDP per person
52
Major factors that determine supply of savings
Marketing and psychological factors
Interest Rates
All of the Above
Smoothing consumption
53
Reserve Ratio
amount the money supply expands
bank only holds a fraction of deposits in reserve
An asset that can be converted w/o loss of value
ratio of reserves to deposits
54
National Wealth
Not adjusted for inflation
None of the above
value of entire nations wealth over time
value of entire nations wealth in a year
55
Unemployed
Rather have a full-time position
adults who don't have a job but are looking for work
Looked for a job in last year and has given up
I want the break to come faster
56
Patents are permanent monopoly rights
False
True
57
Abosolute advantage is the ability to produce a good using a lower opportunity cost than another producer.
True
False
58
Cyclical Unemployment
caused by shocks and long-term
rate of structural unemployment + Frictional unemployment
correlated with the business cycle
scarcity of information and short-term
59
A frontier is what a country can pass on their production.
True
False
60
An economic trade off is the loss of one thing for the gain of another
False
True
61
Real Variables
None of the above
Not adjusted for inflation
Adjusted for inflation
value of entire nations wealth in a year
62
Compliment
Good that can be used in place of another
Consumers buy more of a good when the price decreases
the demand by all consumers of a given good or service
Good that goes together with another good
63
Marginal product of capital diminishes as more and more is added
Law of diminishing Returns
How much more do we get by adding 1 more unit of capital
Growth due to capital accumulation
Growth due to ideas
64
Law of Demand
Good that goes together with another good
the demand by all consumers of a given good or service
Consumers buy more of a good when the price decreases
Good that can be used in place of another
65
Rent Control
Minimum price allowed by law
None of the Above
Maximum price allowed by law
A price ceiling placed on rent
66
FED
widely accepted means of payment
checking or debit accounts
regulate the US money supply
paper bills and coins
67
Demand curve shifters (Select Multiple)
Population, Expectations
Price, Income, Tastes
Price, Income, Taxes
Population, Exit of producers
68
Technical Analysis
high risk equals high return
divide money into different investments in different areas
looks for patterns in stock and asset prices
None of the Above
69
Quantitative Easing
liabilities are greater than assets
risk that failure of one financial institution can bring down others
The fed sells longer-term government bonds
The fed buys longer-term government bonds
70
National Spending Aproach Y= C + I + G
False
True
71
Gross Domestic Product
GDP per person
The market value of all final goods w/i a country w/i a year
Natural Resources
Black Market
72
Comparative Advantage
Based on lower inputs
None of the Above
The most a country can do
Based on lower opportunity costs
73
Systemic Risk
The fed sells longer-term government bonds
liabilities are greater than assets
risk that failure of one financial institution can bring down others
The fed buys longer-term government bonds
74
Nominal Variables
Not adjusted for inflation
value of entire nations wealth over time
value of entire nations wealth in a year
None of the above
75
Surplus
Quantity supplied is greater than quantity demanded
Quantity demanded is greater than quantity supplied
there is efficient trade
Market clearing price
76
Aggregate Demand Shifters (Select Multiple)
Changes in taxes
Changes in money supply
Real interest rate changes
Security about jobs and future income
77
People respond to these in generally predictable ways
Thinking on the Margin
Good institutions
Tradeoffs
Incentives Matter
78
Passive Funds
Run by managers who charge fees
Markets contain all the information that you need
Gets lucks and has insider information
Simply tries to mimic a broad stock market index. Such as S&P 500
79
Changes in technology
Amount a consumer profits
Tendency of suppliers to offer more of a good at a higher price
Productivity improvements from technological progress
Amount a producer profits
80
Money
regulate the US money supply
paper bills and coins
checking or debit accounts
widely accepted means of payment
