2021-01-08T07:20:51+03:00[Europe/Moscow] en true Economics, scarcity, GDP, Factors of Production, Land, labor, capital, PPC, reason why the PPC line is bent, single most important model in Economics, information the demand curve holds, signature feature of a demand curve, things that change demand, effect of change in quantity demanded on a demand curve, effect of change in demand on demand curve, Supply shifts, effect of change in the quantity of supply, effect of change in supply on the supply curve, supply and demand’s effect on each other, complements in production, substitutes in production, equilibrium, definition of gross domestic product, GNP, difference between GDP and GNP, How to find the equilibrium price and quantity of a supply and demand curve, effect of a tax on a supply and demand curve, two examples of how shortages can be created, how to calculate the size of a shortage, real GDP, problem with GDP, things GDP misses, labor equilibrium, classical school thoughts on unemployment, NX, how to calculate net exports, MPC, definition of marginal propensity to consume, MPS, value range of marginal propensity to consume, written consumption function, graphed consumption function, a (in consumption function), Y (in consumption function), b (in consumption function), aggregate spending, C (aggregate spending), I (aggregate spending), G (aggregate spending), investment, graph of a surplus flashcards

Macroeconomics 142 Test 1 (from TinyCards)

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  • Economics
    how we deal with scarcity
  • scarcity
    when there is enough demand for something but not enough of it
  • GDP
    Gross domestic product
  • Factors of Production
    land, labor, and capital
  • Land
    natural resources
  • labor
    human input
  • capital
    stuff that produces other stuff (electrical grids, hammers, etc.)
  • PPC
    Production Possibilities Curve
  • C=inefficiency D=impossible
  • growth in section A but not B
  • PPC of a poor country receiving loans (showing that loans help it grow)
  • reason why the PPC line is bent
    factors of production are specialized
  • single most important model in Economics
    Supply and Demand
  • information the demand curve holds
    how much of something people are willing to buy at certain prices
  • typical demand curve
  • demand curves in markets insensitive to prices
  • demand curve in market completely insensitive to prices
  • demand curve with price ceiling
  • signature feature of a demand curve
    it always has a downward slope
  • things that change demand
    taste and preferences, income, price of related (“complement” or substitute) goods, and population
  • effect of change in quantity demanded on a demand curve
    the point moves along the curve
  • effect of change in demand on demand curve
    the entire curve is changed
  • demand curve with change in quantity demanded
  • demand curve with change in demand
  • horizontal intercept in demand line equation
  • slope in demand line equation
  • indicator of whether the equation is for a supply or demand curve
  • Supply shifts
    price of inputs, technology, number of sellers, and price of related goods (complements and substitutes)
  • effect of change in the quantity of supply
    moves the point along the line; this occurs due to a change in price
  • effect of change in supply on the supply curve
    the entire line moves
  • supply and demand’s effect on each other
    supply and demand don’t affect each other
  • complements in production
    two products that are produced at the same time
  • substitutes in production
    If a company makes Good A, they can’t make Good B.
  • equilibrium on a supply and demand graph
  • equilibrium
    the point that supply and demand curves will move towards and stay at once reached
  • definition of gross domestic product
    market value of all final goods and services produced in a year
  • GNP
    Gross National Product
  • difference between GDP and GNP
    GNP counts operations of a company based in a certain country, even if some operations take place in another country; GDP only counts operations in the same country
  • How to find the equilibrium price and quantity of a supply and demand curve
    Set the supply curve equation and the demand curve equation equal to each other to find Q’s value, then plug it back into the original to find P.
  • effect of a tax on a supply and demand curve
    the supply line vertically shifts upward the monetary amount of the tax
  • graph of a shortage
  • quantity supplied on a shortage graph
  • quantity demanded on a shortage graph
  • two examples of how shortages can be created
    by a price ceiling or an increase in income but not supply
  • how to calculate the size of a shortage
    Substitute the price ceiling for P in the demand and supply curve equations to calculate Q for both, then subtract supply’s Q from demand’s Q.
  • real GDP
    GDP adjusted for inflation
  • problem with GDP
    it doesn’t record products that don’t officially go to market
  • things GDP misses
    home production, crime, nonreported cash payments and leisure time
  • labor equilibrium
    full employment
  • classical school thoughts on unemployment
    it is a temporary disequilibrium and a result of wages being too high
  • NX
    net exports
  • how to calculate net exports
    exports-imports (X-M)
  • MPC
    marginal propensity to consume
  • definition of marginal propensity to consume
    additional consumption generated by additional income
  • MPS
    marginal propensity to save
  • value range of marginal propensity to consume
    0<MPC<1
  • written consumption function
    c=a+bY
  • graphed consumption function
  • a (in consumption function)
    y-intercept
  • Y (in consumption function)
    income
  • b (in consumption function)
    MPC (slope of the consumption function)
  • aggregate spending
    C+I+G
  • C (aggregate spending)
    consumption
  • I (aggregate spending)
    firms
  • G (aggregate spending)
    government spending
  • investment
    a change in capital stock
  • graph of a surplus
  • price floor on a surplus graph
  • quantity demanded on a surplus graph
  • quantity supplied on a surplus graph