Macroeconomics Chapter 1,2,3,8

Economics the study of the management and allocation of limited resources Economics model a simplified version of reality used to analyze real-world economics situations scarcity a situation in which unlimited wants exceed the limited resources available to fulfil those wants Microeconomics the study of how households and firms make choices Market group of buyers and […]

Venn diagram: macroeconomics vs. microeconomics

Considers how prices affect individual buyers and sellers Microeconomics Companies use it to understand what to sell, what to charge, and how to make Microeconomics Study of how individuals and businesses behave within certain economic conditions Microeconomics Examines how goods and services are priced and specific markets Microeconomics A field of study in economics Both […]

MacroEconomics Final Review

Economics the study of how people, institutions, and society make economic choices under conditions of scarcity. Macroeconomics the parts of economics concerned with the economy as a whole; with such major aggregates as the household, business, and government sectors; and with measure of the total economy. Circular Flow Model the flow of resources from household […]

Macroeconomics Chapters 1-5

What are the three core choices in the economy? what, how, and for whom Define “economy”. the grand sum of all production and consumption activities Define “scarcity”. the limitation of a nation’s resources What are the four basic factors of production? land, labor, capital, and entrepreneurship Define “economics”. the study of how people use scarce […]

Macroeconomics Final Exam Study Guide

lower RRR decrease interest rates, decrease unemployment, increase RGDP, increase price levels raise RRR increase interest rates, increase unemployment, decrease RGDP, decrease price levels deduction an amount that can deducted from taxable income S&P 500 500 companies on the NYSE DOW composite index of 30 of largest companies stagflation increase AD, increase price levels, increase […]

AP macroeconomics

absolute advantage the ability to produce something more efficiently capital productive equipment or machinery comparative advantage the ability to produce something with a lower opportunity cost economics a social science that studies how resources are used and is often concerned with how resources can be used to their fullest potential efficiency using resources to their […]

Macroeconomics (Chapter 5-7)

Gross Domestic Product (GDP) the *total market value* of all final goods and services produced within a given period by factors of production located within a country a. Final goods and services: goods and services produced for final use b. Intermediate goods: goods that are produced by one firm for use in further processing by […]

Macroeconomics: Midterm

When is the output gap negative? When Potential GDP > Real GDP A measure of both the incomes and expenditures of an economy is? Gross Domestic Product The calculation for the GDP deflator is? (Nominal GDP/Real GDP) x 100 The three factors of production include? Land, Labor, Capital What is the indicator of the maximum […]

Macroeconomics Chapters 6-9 Test

Chapter 6 … What is a recession A decline in GDP and unemployment (2Q) Real GDP Measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. Unemployment Person can’t get a job and wants a job What causes shock in the economy Demand and Supply shocks […]

Chapter 10 (What is Macroeconomics?)

Microeconomics the study of individual units that comprise the economy; a single household’s decisions: what jobs to take, how to spend income; a single firms decisions: output, pricing Macroeconomics the study of economic-wide issues: key word is “aggregate”, unit of measure is the nation examples: How many people have jobs? Are incomes rising or falling […]

Macroeconomics Chapter 28,29, & 30

Comparative advantage Each nation specialized in a product for which its opportunity cost is lower in terms of the production of another product and the nations trade. Free trade Benefits a nation as a whiling but individuals may lose jobs and incomes from the competition from foreign goods and services. Protectionism A government’s use of […]

Principles of Macroeconomics Chapters 1-4

Economics The social science that deals with the analysis of material problems and how societies allocate scarce resources to satisfy human wants Macroeconomics The study of aggregated economic activity such as the forces that determine the level of income and employment in a society Microeconomics the study of disaggregated economic activities, or how a market […]

macroeconomics chapters 6 – 10

Business Cycle alternate periods of economic expansion and economic recession, fluctuations in economic activity, such as employment and production Recession an economic slump; a depression; a decline Real GDP or Real Gross Domestic Product a measure of GDP in which the quantities produced are valued at the prices in a base year rather than at […]

Macroeconomics terms-McGraw Hill

business cycle Recurring increases and decreases (fluctuations) in the level of in economic activity over periods of years; consists of peak, recession, trough, and expansion phases. (such as employment and production) economics the study of how society manages its scarce resources efficiency the property of society getting the most it can from its scarce resources […]

Macroeconomics (Chapter 1 and 2)

Scarcity the limited nature of society’s resources Economics the study of how society manages its scarce resources Efficiency the property of society getting the most it can from its scarce resources Equality the property of distributing economic prosperity uniformly among members of society Opportunity Cost whatever must be given up to obtain some item Rational […]

Macroeconomics Definitions

Natural Resources the lands, water, metals, minerals, animals and other gifts of nature that are available for producing goods and services. Scarcity the perpetual state of insufficiency of resources to satisfy people’s unlimited wants. Economics the study of how people work together to transform resources into goods and services to satisfy their most pressing wants, […]

Macroeconomics Chapter 7-12

The Business Cycle Gives us insight on our economy Economic Boom 5% or greater increase Economic Bust When the economy shrinks by 5% Law of demand Quantity of a good demanded at a given time period increases as its price fall Classical economic school of thought Adam Smith- “Wealth of Nations” –economy affects life Classical […]

Macroeconomics Practice Exam Questions

What is opportunity cost? what you give up in order to get something else A college cost $20,000 per year. The job you give up to go to college pays $30,000 a year. What is the opportunity cost of going to college? $50,000 Demand has a negative slope true A price change would do what […]

Microeconomics vs. Macroeconomics

Microeconomics individual units that comprise the economy ex. a person choosing b/t taking a job in GA or FL ex. firm choosing to open another factory Macroeconomics the study of the broader economy ex. inflation ex. economic growth and productivity ex. unemployment Macro- broad outlook Micro- individual units

Ch. 10 The data of macroeconomics

microeconomics the study of how households and firms make decisions and how they interact in markets macroeconomics the study of economy-wide phenomena, including inflation, unemployment, and economic growth expenditure for an economy as a whole, income must equal _____ gross domestic product the market value of all final goods and services produced within a country […]

Principles of MacroEconomics chp 1-10

Economy How society manages it’s scarce resources – or all it’s resources Scarcity The limited nature of society’s resources Efficiency The property of society getting the most it can from its scarce resources Equality The property of distributing economic prosperity uniformly among the members of society Opportunity cost Whatever must be given up to obtain […]

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