Card Set Information
Econ Final Sem Vocab
Econ Final Vocab Flashcards
_________when the quantity that consumers are willing and able to buy equals the quantity that producres are willing and able to sell.
________a law stating that as the price of a good or service increases the quantity demanded decreases.
Law of Demand
__________the condition that results because people have limited resources but unlimited wants.
__________a temporary condition that occurs when demand for goods and services at the current price is very high and quantities are low.
_________date on which the dividend was last paid or which next one will be paid.
_________a law that states that as the price of a good or service increases, the quantity supplied increases.
The law of supply
__________states that the more you get the less satisfaction you begin to get after too much.
Diminishing Marginal Utility
__________describes the current situation; how things ARE.
__________describes how things SHOULD BE, or ought to be done.
__________the ability to produce goods/services using fewer resources than someone else.
_________the ability to produce goods and services at a lower opporunity cost than someone else.
__________represents some degree of ownership but doesn't come with the same voting rights as common stockholders.
__________time and price of the last trade made for the stock.
_________dividend per share.
__________a behavior modifier, or something that motivates an individual to behave in a specific manner.
_________a simplified model within a free market that represents the relationship between the resource market and products market.
Circular Flow Model
_________share in the ownership of the company; shareholder.
_________closing price for trading day prior to the last trade reported.
_________low price paid after trading starts; may be higher or lower than closing price of previous day due to orders placed overnight having affect on demand.
__________to provide for the less fortunate members of society in terms of food, shelter, and healthcare.
__________an economy that is stable maintains the goods/services a society relies upon.
Determinants of Supply
-Prices of Resources
-Changes in Conditions due to Natural Disasters
__________the degree to which price changes affect the quantity supplied.
Elasticity of Supply
__________1st and oldest type, custom. Dictate what to produce, how, and for whom.
Main Goals: security and stability
Key Characteristics of the U.S.
-Free Enterprise System
__________means producing the maximum possible output from available resources.
__________simplified version of reality that allows the analysis of effects of one change at a time.
__________the addition of one more unit of something to the current situation.
Thinking at the Margin
_________the study of how people make choices using the scarce resources they have to fulfill their unlimited want/needs.
__________is a system designed to manage limited resources for the production, allocation, and consumption of goods/services.
_________price difference from the current price to the last trade price.
__________stocks currently selling at a low price and considered undervalued.
__________company that makes investments on your behalf in many different securities.
__________the fair and justified distribution of wealth.
_________an economy grows when it produces more and better goods/services.
__________changes in $ have little impact on QS.
-Require a lot of $
- Require Time
-Resources not handy or easily available
Inelastic Goods (Supply)
__________the degree to which changes in a good's price affect the quantity demanded.
Elasticity of Demand
_________all decisions are made by the authoritive power.
Main Goals: equity & security
_________Adam Smith's idea that leads to economic interdependence.
The value of the next best alternative you must pass up...
_______some decisions made today may have consequences in the future.
Future Consequences Count
_________choose something when the benefits outweigh the costs.
Costs vs. Benefits
_________a large amount of stock, usually more than 10,000 shares.
_________popular name for the Ney York Stock Exchange
__________company profits paid to its stockholders.
_________price you will get if you sell your stock
__________first sale of stock by a company to the public.
IPO: Initial Public Offering
_________a socities ability to make economic decisions without the interference of the government.
_________the economy uses its resources to their full potential.
_________changes in $ has little changes in Qd.
-Product is a necessity
-None/Few readily substitutes
-Cost represents small portion of income
Inelastic Goods (Demand)
Determinants of Demand
-Consumers Taste & Preferences
-Price of Related Goods
_________all decisions made by the societies individual producers & consumers.
Main Goals: freedom & efficiency
_________results from specialization.
specialization encourages/increases trade
Division of Labor
__________the satisfaction we gain from consuming goods/services.
_________=total displeasure attained after too much of something.
_________=with each additional unit of consumption, the satisfaction we receive declines.
Law of Diminishing Marginal Utility
_________market any "place" where buyers and sellers come together to trade goods/services.
Market Coordinate Trade
_________one of the 7P. Due to limited resources, choices must be made, you must give something up to get something you really want.
Scarcity forces Tradeoffs
_______common stock of large finacially stable highly respected and established corporation with solid records of dividend payment.
Blue Chip Stocks
________number of shares of shares traded.
________price you will pay to buy a stock.
_________stocks that move up or down with the sync of business conditions or cycles.
Ex: cars, housing, steel and industrial equipment companies.
The three basic economic questions...
3. For Whom
________small changes in $ has big, opposite change in Qd.
-Product not a necessity
-Product cost represents larger portion of income.
Elastic Goods (demand)
__________small changes in $ cause major change in Qs.
-Products are made easily & quickly
-Made Using few, readily available resources.
Elastic Goods (Supply)
_________all economies have some degree of government & individual decision making.
_________prevent trade among the states such as tariffs.
__________are the scarce resources that go into the process.
________are the goods and services produced using certain resources.
labor + labor + capital =
Goods & Services
_________individuals should focus on the one thing they do well and then trade with others for the things the are unable to provide for themselves.
Trade makes people better off
_________aka "market" econ focuses on the choices of individuals, households, businesses.
_________aka national econ focuses on the performance of the economy as a whole.
_________stocks of companies with profits that are increasing quickly; greater than the average price of appreciation.
__________occur when a company distributes additional stock; typically done when price of stock gets too high for regular investor to purchase.
_________the recovery of prices after a decline.
_________the paper ribbon on which a telegraphic printer prints stock quotations.
________basic ownership of a corporation; each share entitles the holder to one vote in the affaires of the company and one vote to elect the board members
_________company profits paid to its stockholders in form of additional stock
_________government regulation that establishes a max price that producers cannot change above.
Protects = Consumers
_________government regulation that establishes a minimum price to be paid.
Protects = Producers
_________a system in which the government decides how to distribute a product (based on policy not price)
___________ = Unfair
-Expensive to put into effect ($$ & time)
-Creates Black Markets: illegally exchange goods at high prices.
_________a price where the demand and supply are in balance. The market will be "cleared" of all surpluses and shortages.
_________when the quantity demanded is no longer equal to the quantity supplied.
Results: Shortages or a Surplus
_________when the quantity demanded at a specific price exceeds the quantity supplied.
_________the organization of a market based mainly on the degree of competition.
________a market structure in which there are:
-easy entry into the market
-no control over the prices
The most efficient structure.
__________a market structure in which there is:
-high barriers of entry.
_________a market structure in which there are:
-high barriers to entry
-some control over prices
Few firms dominate the market.
________a market structure in which there are:
-few barriers to entry
-some control over prices
________a cost of benefit that arises from production or consumption of a good or service that falls on someone other than the producer or consumer.
Product differentiation by...
_______resources not being used much of the time, remain idle/wasted.
_______an agreement between firms (cartel) to divide the market and set a fixed price vs. price wars.
_________government attempts to prohibit efforts to monopolize markets and rather promote competition where desirable.
________outlawed creation of trust (firm or group of firms that try to monopolize a particular market) restraint of trade & monopolization.
Sherman Antitrust Act 1890
_______est. federal body to help enforce antitrust laws. Consists of 5 full-time commissioners.
Federal Trade Comission 1914
_________more strict that SAA, prohibits certain practices not covered by SAA. Allowed government to stop mono before it developed.
Clayton Act 1914