Econ Final

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Econ Final
2011-12-14 20:31:02
Econ Final Sem Vocab

Econ Final Vocab Flashcards
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  1. _________when the quantity that consumers are willing and able to buy equals the quantity that producres are willing and able to sell.
    Market Equilibrium
  2. ________a law stating that as the price of a good or service increases the quantity demanded decreases.
    Law of Demand
  3. __________the condition that results because people have limited resources but unlimited wants.
  4. __________a temporary condition that occurs when demand for goods and services at the current price is very high and quantities are low.
  5. _________date on which the dividend was last paid or which next one will be paid.
    Div. Date
  6. _________a law that states that as the price of a good or service increases, the quantity supplied increases.
    The law of supply
  7. __________states that the more you get the less satisfaction you begin to get after too much.
    Diminishing Marginal Utility
  8. __________describes the current situation; how things ARE.
    Positive Economics
  9. __________describes how things SHOULD BE, or ought to be done.
    Normative Economics
  10. __________the ability to produce goods/services using fewer resources than someone else.
    Absolute Advantage
  11. _________the ability to produce goods and services at a lower opporunity cost than someone else.
    Comparative Advantage
  12. __________represents some degree of ownership but doesn't come with the same voting rights as common stockholders.
    Preferred Stock
  13. __________time and price of the last trade made for the stock.
    Last Trade
  14. _________dividend per share.
  15. __________a behavior modifier, or something that motivates an individual to behave in a specific manner.
    Incentives Matter
  16. _________a simplified model within a free market that represents the relationship between the resource market and products market.
    Circular Flow Model
  17. _________share in the ownership of the company; shareholder.
  18. _________closing price for trading day prior to the last trade reported.
    Prev. Close
  19. _________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.
    opening price
  20. __________to provide for the less fortunate members of society in terms of food, shelter, and healthcare.
    Economic Security
  21. __________an economy that is stable maintains the goods/services a society relies upon.
    Economic Stability
  22. Determinants of Supply
    • -Prices of Resources
    • -Government Tools
    • -Technology
    • -Competition
    • -Producer Expectations
    • -Changes in Conditions due to Natural Disasters
  23. __________the degree to which price changes affect the quantity supplied.
    Elasticity of Supply
  24. __________1st and oldest type, custom. Dictate what to produce, how, and for whom.

    Main Goals: security and stability
    Traditional Services
  25. Key Characteristics of the U.S.
    • -Free Enterprise System
    • -Economic Freedom
    • -Competition
    • -Equal Opportunity
    • -Binding Contracts
    • -Property Rights
    • -Profit Motive
    • -Limited Government
  26. __________means producing the maximum possible output from available resources.
    Economic Efficiency
  27. __________simplified version of reality that allows the analysis of effects of one change at a time.
    Economic Models
  28. __________the addition of one more unit of something to the current situation.
    Thinking at the Margin
  29. _________the study of how people make choices using the scarce resources they have to fulfill their unlimited want/needs.
  30. __________is a system designed to manage limited resources for the production, allocation, and consumption of goods/services.
    The Economy
  31. _________price difference from the current price to the last trade price.
    Net Change
  32. __________stocks currently selling at a low price and considered undervalued.
    Value Stocks
  33. __________company that makes investments on your behalf in many different securities.
    Mutual Fund
  34. __________the fair and justified distribution of wealth.
    Economic Equity
  35. _________an economy grows when it produces more and better goods/services.
    Economic Growth
  36. __________changes in $ have little impact on QS.

    -Require a lot of $
    - Require Time
    -Resources not handy or easily available
    Inelastic Goods (Supply)
  37. __________the degree to which changes in a good's price affect the quantity demanded.
    Elasticity of Demand
  38. _________all decisions are made by the authoritive power.

    Main Goals: equity & security
    Command Economies
  39. _________Adam Smith's idea that leads to economic interdependence.
  40. The value of the next best alternative you must pass up...
    Opportunity Cost
  41. _______some decisions made today may have consequences in the future.
    Future Consequences Count
  42. _________choose something when the benefits outweigh the costs.
    Costs vs. Benefits
  43. _________a large amount of stock, usually more than 10,000 shares.
  44. _________popular name for the Ney York Stock Exchange
    Big Board
  45. __________company profits paid to its stockholders.
  46. _________price you will get if you sell your stock
    Bid Price
  47. __________first sale of stock by a company to the public.
    IPO: Initial Public Offering
  48. _________a socities ability to make economic decisions without the interference of the government.
    Economic Freedom
  49. _________the economy uses its resources to their full potential.
    Economic Efficiency
  50. _________changes in $ has little changes in Qd.

    -Product is a necessity
    -None/Few readily substitutes
    -Cost represents small portion of income
    Inelastic Goods (Demand)
  51. Determinants of Demand
    • -Consumers Taste & Preferences
    • -Market Size
    • -Income +/-
    • -Price of Related Goods
    • -Consumers Expectations
  52. _________all decisions made by the societies individual producers & consumers.

    Main Goals: freedom & efficiency
    Market Economies
  53. _________results from specialization.

    specialization encourages/increases trade
    Division of Labor
  54. __________the satisfaction we gain from consuming goods/services.
  55. _________=extra satisfaction
    Marginal Utility
  56. _________=total displeasure attained after too much of something.
    Negative Utility
  57. _________=with each additional unit of consumption, the satisfaction we receive declines.
    Law of Diminishing Marginal Utility
  58. _________market any "place" where buyers and sellers come together to trade goods/services.
    Market Coordinate Trade
  59. _________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
  60. _______common stock of large finacially stable highly respected and established corporation with solid records of dividend payment.
    Blue Chip Stocks
  61. ________number of shares of shares traded.
  62. ________price you will pay to buy a stock.
    Ask Price
  63. _________stocks that move up or down with the sync of business conditions or cycles.

    Ex: cars, housing, steel and industrial equipment companies.
    Cyclical Stocks
  64. The three basic economic questions...

    • 1. What
    • 2. How
    • 3. For Whom
  65. ________small changes in $ has big, opposite change in Qd.

    -Product not a necessity
    -Have Substitutes
    -Product cost represents larger portion of income.
    Elastic Goods (demand)
  66. __________small changes in $ cause major change in Qs.
    -Products are made easily & quickly
    -Made Inexpensively
    -Made Using few, readily available resources.
    Elastic Goods (Supply)
  67. _________all economies have some degree of government & individual decision making.
    Mixed Economies
  68. _________prevent trade among the states such as tariffs.
    Trade Barriers
  69. __________are the scarce resources that go into the process.
  70. ________are the goods and services produced using certain resources.
  71. labor + labor + capital =
    Goods & Services
  72. _________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
  73. _________aka "market" econ focuses on the choices of individuals, households, businesses.
    Micro (economics)
  74. _________aka national econ focuses on the performance of the economy as a whole.
    Macro (economics)
  75. _________stocks of companies with profits that are increasing quickly; greater than the average price of appreciation.
    Growth Stocks
  76. __________occur when a company distributes additional stock; typically done when price of stock gets too high for regular investor to purchase.
    Stock Splits
  77. _________the recovery of prices after a decline.
  78. _________the paper ribbon on which a telegraphic printer prints stock quotations.
    ticker tape
  79. ________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
    Common Stock
  80. _________company profits paid to its stockholders in form of additional stock
    Stock Dividends
  81. _________government regulation that establishes a max price that producers cannot change above.

    Protects = Consumers
    Price Ceiling
  82. _________government regulation that establishes a minimum price to be paid.

    Protects = Producers
    Price Floor
  83. _________a system in which the government decides how to distribute a product (based on policy not price)
  84. ___________ = Unfair
    -Expensive to put into effect ($$ & time)
    -Creates Black Markets: illegally exchange goods at high prices.
    Rationing Consequences
  85. _________a price where the demand and supply are in balance. The market will be "cleared" of all surpluses and shortages.
    Market-Clearing Price
  86. _________when the quantity demanded is no longer equal to the quantity supplied.

    Results: Shortages or a Surplus
  87. _________when the quantity demanded at a specific price exceeds the quantity supplied.
    Excess Demand
  88. _________the organization of a market based mainly on the degree of competition.
    Market Structure
  89. ________a market structure in which there are:
    -many producers
    -identical products
    -easy entry into the market
    -no control over the prices
    The most efficient structure.
    Perfect Competition
  90. __________a market structure in which there is:
    -one producer
    -unique product
    -high barriers of entry.
  91. _________a market structure in which there are:
    -few producers
    -similar products
    -high barriers to entry
    -some control over prices
    Few firms dominate the market.
  92. ________a market structure in which there are:
    -many producers
    -differentiated products
    -few barriers to entry
    -some control over prices
    Monopolistic Competition
  93. ________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.
  94. Product differentiation by...
    • -Physical Differences
    • -Location
    • -Services
    • -Product Image
  95. _______resources not being used much of the time, remain idle/wasted.
    Excess Capacity
  96. _______an agreement between firms (cartel) to divide the market and set a fixed price vs. price wars.
  97. _________government attempts to prohibit efforts to monopolize markets and rather promote competition where desirable.
    Antitrust Activity
  98. ________outlawed creation of trust (firm or group of firms that try to monopolize a particular market) restraint of trade & monopolization.
    Sherman Antitrust Act 1890
  99. _______est. federal body to help enforce antitrust laws. Consists of 5 full-time commissioners.
    Federal Trade Comission 1914
  100. _________more strict that SAA, prohibits certain practices not covered by SAA. Allowed government to stop mono before it developed.
    Clayton Act 1914