BYU high school economics

BYU high school economics

memorize.aimemorize.ai (lvl 286)
Section 1

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Substitue in production

Front

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Last updated

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Date created

Mar 14, 2020

Cards (136)

Section 1

(50 cards)

Substitue in production

Front

a good that can be produced instead of the good you are producing

Back

Demand

Front

the amount of a good that consumers are willing and able to buy at a given price

Back

Common ownership

Front

everyone has an ownership in all aspects of society

Back

Trade-off

Front

exchange of one thing for another

Back

Mixed-market economy

Front

combines elements of command, market, and traditional economies

Back

Free goods

Front

not scarce, and have no opportunity cost

Back

Money price

Front

amount of money it will take to purchase something

Back

Economic analysis

Front

trade-offs and choices

Back

Producer

Front

the makers of goods and services

Back

Factor market

Front

Input market; where inputs into the production process are bought and sold

Back

Capital

Front

man-made goods that are required for the production process

Back

Scarcity

Front

lack of resources, is the fundamental economic problem, how much of a good is available

Back

Macroeconomics

Front

study of economics on a much larger scale; study of the entire economy, including government economic policies and international trade

Back

Voluntary exchange

Front

trade between both parties is voluntary, not mandated by government decree

Back

Cost-benefit analysis

Front

looking at the costs and benefits of a choice and then deciding if the benefits outweigh the costs

Back

Public ownership

Front

individuals cannot own property; the government also owns the means of production

Back

Inferior good

Front

a good which consumers buy less of when they earn more money and more of when they earn less money

Back

Quantity demanded

Front

amount of a good that consumers plan to buy at a given price during a specific time

Back

Relative price

Front

measured in terms of other goods

Back

Laissez-faire

Front

"hands off" economy

Back

Wealth

Front

value of all of the goods, services, and resources a society or individual owns

Back

Price

Front

amount of goods or money that must be given up in exchange for something

Back

Land

Front

all natural resources such as timber, water, and minerals

Back

Incentives

Front

anticipated positive outcomes from a decision or set of decisions

Back

Complement

Front

a good that is bought along with another good

Back

Marginal cost

Front

cost of producing one more unit of output

Back

Complement in production

Front

a good that is produced along with another good

Back

Labor

Front

all people and the work they do in order to produce goods and services

Back

Microeconomics

Front

study of economics on a small scale; includes studying the behavior of firms (businesses), households, and industries

Back

Traditional economies

Front

found in rural, non-developed areas and are governed by customs, technology not developed

Back

Command economies

Front

central authority (usually the government) dictates the economic behavior of the individuals

Back

Utility

Front

usefulness of a good

Back

Non-monetary incentives

Front

incentives that do not have anything to do with money

Back

Circular flow of economic activity

Front

Individuals, Factor market, Business, Product market

Back

Opportunity Cost

Front

value of the best foregone alternative

Back

Market economies

Front

give economic freedom to individuals and businesses and let them make the decisions

Back

Product market

Front

business exchanging finished products for consumers' money

Back

Four factors of production

Front

Land, labor, entrepreneur, capital

Back

Quantity supplied

Front

amount of a good or service that producers plan to sell during a given amount of time at a particular price

Back

Economics

Front

Social science that attempts to explain human behavior in economy

Back

Four large sectors where exchanges take place

Front

Businesses, Government, Consumers, Foreign

Back

Market

Front

simply an economic term for an exchange

Back

Economic goods

Front

goods that can be bought or sold

Back

Monetary incentives

Front

Money incentives

Back

Five economic goals

Front

Efficiency, equity/fairness, full employment, stability, economic growth

Back

Entrepreneur

Front

come up with new, innovative ideas in order to make a profit

Back

Law of supply

Front

the higher the price, the larger the quantity supplied

Back

Consumer

Front

the buyers of goods and services

Back

Normal goods

Front

things that consumers will buy if they make enough money or will not buy if they don't make enough money.

Back

TINSTAAFL

Front

There Is No Such Thing As A Free Lunch

Back

Section 2

(50 cards)

Allocation inefficient

Front

they can restrict their output and thus charge higher prices

Back

Contraction

Front

a period of economic slowdown

Back

Economics of scale

Front

large companies are able to produce goods at lower prices

Back

Budget deficit

Front

the amount of money by which federal expenditures exceed federal revenue in one year

Back

Inflation

Front

a rise in the overall price of goods and services

Back

Nominal GDP

Front

the current raw data not adjusted for inflation

Back

Federal Deposit Insurance Corporation (FDIC)

Front

insures deposits up to $250,000 placed in all banks in the United States

Back

Natural monopolies

Front

one business is able to produce a good cheaper and more efficiently than other businesses

Back

Seasonal unemployment

Front

exists because of the changing seasons

Back

Tax and spend policy

Front

money supply is controlled through taxation or through government spending

Back

Trough

Front

the bottom of the downward trend

Back

Price ceiling

Front

a government regulation that sets the maximum legal price that can be charged for a product

Back

Gross Domestic Product

Front

the market value of all final goods and services produced in the nation in a year

Back

Discretionary income

Front

the amount of income beyond what is needed to pay the bills

Back

Real GDP

Front

adjusted for inflation and is measured in constant dollars

Back

Fiscal policy

Front

the use of taxes and government spending in order to affect the overall level of the economy

Back

Price floor

Front

lowest legal price that can be paid for a good or service

Back

Oligopoly

Front

similar to monopolies, except instead of one firm there are at least two

Back

Federal Trade Commission (FTC)

Front

ensure that U.S. markets are efficient and free from factors that might harm competition

Back

Production inefficient

Front

do not ever produce goods at their lowest possible operating cost

Back

Depression

Front

economy must be declining for at least twelve months straight

Back

Investment

Front

putting money into businesses, stocks, bonds, retirement plans, and so forth, in order to gain a profit

Back

Four sectors of economy

Front

Government, Investment, Consumers, Net exports

Back

Monopolistic competition

Front

somewhere between perfect competition and a monopoly

Back

Consumer Product Safety Commission (CPSC)

Front

protect the public from unreasonable injury or death from consumer products

Back

Expansion

Front

a fast upward growth spike

Back

eminent domain

Front

government confiscation of public land

Back

Interdependence

Front

the businesses depend on each other

Back

Federal reserve

Front

strives to provide a stable and more flexible monetary system

Back

Open market operations

Front

purchases and sales of U.S. government securities

Back

Monetary policies

Front

the use of economic principles and programs by the Federal Reserve in order to control the money supply, availability of credit, and interest rates

Back

Food and Drug Administration (FDA)

Front

protects human health by assuring the safety and security of all food, drugs, cosmetics, and medical devices in the United States

Back

Unemployment rate

Front

the ratio of job seekers to the total labor force

Back

Equilibrium point

Front

the quantity supplied equals the quantity demanded

Back

Cyclical unemployment

Front

because of the fluctuation of business cycles in the economy

Back

Structural unemployment

Front

exists when a person is not qualified for any job because the most the person can contribute is less than the minimum wage for the job

Back

Automatic stabilizers

Front

fiscal policies not requiring congressional action, non-discretionary fiscal policies

Back

Patents

Front

assure that businesses and individuals "own" ideas and products and that new ideas will not be stolen and copied

Back

Expenditures

Front

the annual costs, or expenses, of the sector

Back

National debt

Front

total amount of money owed by a government

Back

Regressive tax

Front

takes a larger percentage of income from low-income groups than from high-income groups

Back

Discretionary fiscal policies

Front

Fiscal policies that require congressional action

Back

Proportional tax

Front

takes the same percentage from all income groups

Back

Progressive tax

Front

takes a larger percentage of income from high-income groups than from low-income groups

Back

Technological unemployment

Front

exists when new technology replaces existing jobs

Back

Shortage

Front

a situation where the quantity demanded is greater than the quantity supplied

Back

Business cycles

Front

the fluctuations in GDP growth

Back

Perfect competition

Front

only competition is price competition; may not ever happen

Back

Pure monopoly

Front

market structure composed of one company selling a product for which there is no good substitute

Back

Frictional unemployment

Front

results from the day-to-day changes in the economy

Back

Section 3

(36 cards)

Foreign exchange rate

Front

the price of a nation's currency in relation to another nation's currency

Back

Black Tuesday

Front

Millions of shares were traded, and many could not find buyers at any price

Back

Banks' four main functions

Front

Storing money, transferring money, lending money, financial services

Back

Specialization

Front

promotes the efficiency of the world economy because nations are able to produce only what they produce especially well

Back

Labor unions

Front

strive to provide better working conditions, shorter working days, and overall better benefits for workers

Back

Balance of trade surplus or deficit

Front

specific areas of the balance of payments

Back

Fixed exchange rate

Front

value of a nation's currency is determined by its own central bank

Back

Absolute advantage

Front

a nation should specialize in only the goods they can produce cheaper than the nations they trade with

Back

Types of financial institutions

Front

Commercial banks, savings and loans, credit union

Back

Money

Front

anything that is accepted as a medium of exchange

Back

Isolationism

Front

a period where they focused only on themselves and cared nothing about what was happening throughout the world

Back

Comparative advantage

Front

nations can still gain from foreign trade even if other countries can produce goods or services more cheaply

Back

Glass-Steagall Act

Front

set firm laws and regulations for the banking industry

Back

Stagflation

Front

inflation and unemployment were increasing simultaneously

Back

Licensing requirements

Front

require foreign industries to go through a procedure of licensing their business and paying a fee

Back

Hawley-Smoot tariff

Front

largest tariff in United States history, meant to help with Great Depression, backfired

Back

New Deal

Front

domestic programs passed by Congress between 1933 and 1938 to rescue America from great depression

Back

Multinational company

Front

company that exists in more than one country

Back

Tariff

Front

an import tax on a good

Back

Managed exchange rates

Front

influenced by the central bank of a nation, but they do not concentrate around one fixed rate

Back

Infant industry argument

Front

infant industries, or new industries, are very fragile and need to be protected

Back

Assembly line

Front

Workers specialized in one task, such as putting on a wheel or a windshield wiper

Back

Installment buying

Front

an agreement in which the consumer makes a down payment and pays the rest in payments plus interest

Back

Central bank

Front

works to hold the exchange rate in place, mainly through the purchase and sale of national currency

Back

Floating/flexible exchange rate

Front

determined by the market forces of supply and demand

Back

National security argument

Front

some industries are so important to national security that they need to be protected

Back

Cold War

Front

the period when hostility, short of war, existed between the United States and the Soviet Union

Back

Emergency Banking Act

Front

allowed federal bank inspections

Back

Dumping

Front

occurs when a nation sells its goods at a lower price in a foreign market than they do in their domestic market

Back

Collective bargaining

Front

a process of negotiating that allows both sides to establish acceptable conditions

Back

Weak dollar

Front

a dollar that can purchase less foreign currency relative to a strong dollar

Back

Strong dollar

Front

a dollar that can purchase more foreign currency relative to a weak dollar

Back

Gold standards

Front

country backs up the value of its currency with actual gold reserves

Back

Transaction costs

Front

costs other than price that are associated with the purchase of a good or service

Back

Labor movement

Front

refers to the efforts of workers to improve their economic position

Back

Globalization

Front

emergence of a global society

Back