final vocabulary.txt

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final vocabulary.txt
2011-07-17 17:48:42
final vocab micro economics

test 3 beutel
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  1. market power
    the ability to control, or at least affect, the terms and conditions
  2. competitive equilibrium
    the equilibrium in a market where all buyers and sellers are price takers, unable individually to the price they pay or charge
  3. zero economic profit (or normal profit)
    the amount (zero) that is left over when revenues just meet the opportunity costs of supplying all resources, including an enrepreneur's capital and time
  4. positive economic profit (or above normal profit)
    the amount by which revenues exceed opportunity costs
  5. allocative efficiency
    the allocation of resources to their most (market-) valued uses
  6. consumer surplus
    the excess (summed over all the buyers in a market) of the amounts that buyers would be willing to pay for a good service, over the amounts that they actually pay
  7. producer surplus
    the excess (summed over all the sellers in a market) of the amounts sellers actually recieve, over the amounts that would make them just willing to supply the good or service
  8. deadweight loss
    the loss in efficiency (measured in terms of producer and consumer surplus) that is said to arise if market transactions take place at other than the competitive market equilibrium level
  9. The 4 market structures
    the four traditional idealized types of market structure are perfect competition, pure monopoly, monopolistic competition, and oligopoly
  10. barriers to entry
    economic, legal, or deliberate obstacles that keep new sellers from entering a market
  11. natural monopoly
    a monopoly that arises because the minimum efficient scale of the producing unit is large relative to the total market demand
  12. exclusionary practices
    a firm's getting its suppliers or distributors to agree not to provide goods or services to potential competitiors
  13. predatory pricing
    a powerful seller's temporarily pricing its goods or services below cost, in order to drive weaker competitors out of business
  14. dumping
    selling in foreign countries at prices that are below the firm's costs of production
  15. local monopoly
    a monopoly limited to a specific geographical area
  16. regulated monopoly
    a monopoly run under government supervision
  17. price market
    a seller that can selling price, constrained only by demand conditions
  18. What sloping for MR curve for a monopolist?
    The marginal revenue curve for a monopolist is downward-sloping
  19. rent-seeking behavior
    behavior directed toward getting transfers or favors
  20. price discrimination
    a seller's charging different prices to different buyers, depending on their ability and willingness to pay
  21. nonprice competition
    competition through activities other than setting prices, such as advertising and location
  22. concentration ratio
    the share of production, sales, or revenues attributable to the largest firms in an industry
  23. duopoly
    a market with only two sellers
  24. payoff matrix
    a table used in game theory to illustrate possible outcomes for each of two players, depending on the strategy that each chooses
  25. price war
    a situation in which a firm cuts prices in order to try to undercut its rivals, and the rivals react by cutting prices even more
  26. tacit collusion
    collusion that takes place without creation of a cartel
  27. price fixing
    a form of collusion in which many sellers follow the price changes instituted by one particualr sellers
  28. price leadership
    a form of collision in which many sellers follow the price changes instituted by one particular seller
  29. labor force participation rate
    the percentage of the adult, noninstitutionalized population who are either working at a paid job or seeking paid work
  30. backward-bending individual paid labor supply curve
    a pattern that arises because, beyond some level of wages, income effects may outweigh substitution effects in determining individuals' decisions about how much to work
  31. general human capital
    knowledge and skills that workers can take with them as they move from employer to employer. it may be formed before starting a job or through on-the-job training
  32. employer-specific human capital
    knowledge and skills that have been gained on a particular job and are useful only as long as a worker remains with the same employer
  33. signaling theory
    a theory of the value of an education that sugguests that an educational credential "signals" to an employer that potential worker has desired character traits and work habits
  34. economic rents
    returns to factors that are in fixed supply
  35. monopsony
    the case of one buyer
  36. bilateral monopoly
    the situation in which there is only one buyer confronting only one seller
  37. oligopsony
    the case of few buyers
  38. compensating wage differentials
    the theory that workers will be willing to acceot lower wages for jobs with better characteristics and will demand higher wages for jobs with unappealig characteristics, all else equal
  39. monitoring costs
    the costs of inspecting and supervising work to make sure that the quanitity and quality of work accomplished meet standards set by the employer
  40. efficiency wage theory
    the theory that n employer can motivate workers to put forth more effort by paying them somewhat more than what they could get elsewhere
  41. employee morale
    the attitude of workers toward their work and their employer
  42. wage contours
    historically determined patterns of relative wages among occupations. People ofen tend to think that deviationg from established wage contours is "unfair"
  43. dual labor markets
    a situation in which "primary" workers enjoy high wages, opportunities for advancement, and job security, while "secondary" workers are hired with low wages, no opportunities for advancement, and no job security
  44. labor markets discrimination
    a condition that exists when, among similarly qualified people, some are treated disadvantageously in employment on the basis of race, gender, age, sexual preference, or disability
  45. occupational segregation
    the tendency of men and women to be employed in different occupations
  46. Marginal revenue product of labor (MRPl)
    the amount that a unit of additional labor contributes to the revenues of the firm
  47. Marginal Factor Cost of Labor (MFCl)
    the amount that a unit of additional labor adds to the firm's costs
  48. returns to capital
    the monetized value of what an investor expects to get back, in the future, from making an investment
  49. present discounted value (PDV)
    the value today of future streams of funds
  50. risk
    as used by economists, a situation in which the exact outcome is unknown, but the chance of each possible outcome occuring is known
  51. uncertainty
    as used by economists, a situation where not only is the exact outcome unknown, but the range of outcomes and/or their probablities of occuring are also unknown
  52. sensitivity analysis
    the rerunning of a calculation with a variety of different numbers, in order to analyze the outcome of a decision under varying assumptions
  53. appreciation
    an increase in the value of an asset over time
  54. investor confiddence
    investors' optimism or pessimism concerning future returns
  55. marginal revenue product of (manufactured) capital (MRPmk)
    the amount capital services contributes to the revenues of the firm
  56. marginal factor cost of (maufactored) capital (MFCmk)
    the amount that a unit of additional capital services adds to the firm's costs
  57. Coase Theorem
    If property rights are well defined, and there are no significant transactions costs, then market can efficiently allocate resources even in the presence of externalities
  58. liquidation value
    the value of the physical assets of firm, should it be dissoved and its assets sold separately
  59. goodwill
    the accounting term for the premium that one company pays for another over and above the value of its physical assets. The premium for goodwill may represent advantages from specialized knowledge, effective organization, or other intangible assets
  60. retained earnings
    profits that a company keeps for its own uses
  61. bond
    a financial instrument that, in return for the loan of funds, commits its seller to pay a fixed amount every year (called the coupn amount), as well as to repay the amount of principal (called the bond's face value) on particular date in the future (called the maturity date)
  62. bond yeild to maturity
    the amount a bond returns during a year, if held to maturity, expressed in oercentage terms. The yield is determined by the coupon amount, the bond price (the price at which trades are made), and the time to maturity. As yield rise in the rest of the bond market, the price od an existing fixed-coupon bond will fall, and vise versa
  63. stocks
    financial instruments that, in return for a payment, give buyers a claim to ownership in the company that issues them
  64. dividends
    payment in cash or extra shares paid out to sharehoolders
  65. annual return on a share of stock
    the sum of its dividends and any capital gains (or losses)
  66. speculation
    buying and selling assets with the expectation of profiting from appriciation or depreciation in asset values
  67. growth stocks
    stocks that are expected to return substantial capital gains
  68. speculative bubble
    the situation that occurs when mutaully reinforcing investor optimism raises the value of a stock far above what could be justified by the actual assets and profitability of the firm
  69. institutional investors
    economic organizations such as pension funds and insurance companies that invest funds that have been placed in their care