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47 Cards in this Set
- Front
- Back
Maynard Keynes (Keynesian) |
Who had a great influence and argued/advocated stabilizing the economy by the use of fiscal policy? |
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Business cycle |
periodic but irregular fluctuations in economic activity |
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Fiscal policy |
increase or decrease in taxes or government spending in an effort to achieve economic stability |
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monetary policy |
the regulation of money supply and interest rates by a central bank |
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Socialism |
Economy in which key industries are government-owned but private ownership of smaller business is allowed |
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Communism |
Economy with collective ownership of property under a central government |
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Capitalism |
Economic system based on a free market, profit motive, competition and private ownership of factors of production |
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Deflation |
a persisten decrease in the level of consumer prices |
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Stagflation |
Condition of slow economic growth, rising prices and relatively high unemployment |
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Inflation |
general rise in the prices of goods and services over time |
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Disinflation |
occurs when price increases are slowing (the inflation rate is declining) |
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Brain Drain |
migration of educated professionals from a country for better pay or living conditions |
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Invisible hand |
Economic principle stating that a freely competitive market works for the benefit of all |
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Oligopoly |
Market situation in which each of a few producers affect but does not control the market |
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Monopoly |
market situation with only one seller for a given product or service |
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Recession |
Two or more consequetive quarters of decline in GDP |
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Demand |
The amount of a commodity or service that people are ready to buy for a given price |
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Market Price |
The price determined by the movement of supply and demand |
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Supply |
The quantity of a product producers are willing to sell at a given price |
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Free Market Economy |
Economy based on supply and demand with little or no government intervention or control |
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Command Economy |
Economic system in which the government decides what will be produced and how it will be distributed |
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Economics |
The study of how societies allocate scarce resources to produce and distribute goods and services |
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Microeconomics |
The study of economic behavior of individuals, businesses, and industries |
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Unemployment Rate |
Percentage of total workforce who are unemployed and actively seeking work |
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CPI Consumer Price Index |
A measure of the average change over time in prices paid by consumers for a fictional basket of goods and services |
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PPI Producer Price Index |
Weighted index of prices measured at the wholesale (or producer) level |
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GDP Gross Domestic Product |
The total value of an economy's domestic output of goods and services |
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Macroeconomics |
The study of economics that looks at the operation of a nation's economy as a whole |
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Mixed Economy |
exist where some allocation of resources is made by the market and some by the government |
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Capitalism |
What economic system has led to prosperity of most developed economies? |
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Adam Smith |
Who was the first economist to describe the process that turns self-directed gain into social and economic benefit for all? |
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By the neogitations between buyers and sellers that takes place in the marketplace |
In Free Markets, how are prices determined? |
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monopolistic competition |
the degree of competition in which there are a large number of sellers that provide similar- but not identical- products |
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Greater social equality |
What is the major benefit of socialism? |
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Mixed economy |
What is the trend towards economy of most countries today? |
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Free Market |
What type of economy corresponds to capitalism? |
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command |
What type of economy corresponds to communism? |
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improve our understanding of the economy |
The primary role of economic indications is to |
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Federal Reserve Bank |
Who implements monetary policy? |
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Monetary and Fiscal Policy |
What are two primary tools thgovernment can use to stablize the economy? |
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1. Right to own private property 2. Right to own a business and keep all that business's profits 3. Right to freedom of competition 4. Right to freedom of choice |
What are the four basic rights under a free-market capitalism system? |
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Perfect competition |
The degree of competition in which there are many sellers in a market ad none is large enough to dictate the price of a product |
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business cycles |
the periodic rise and falls that occur in economies over time |
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depression |
a severe recession, usually accompanied by defaltion |
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Fiscal policy |
The federal government's efforts to keep the economy stable by increasing or decreasing taxes or government spending |
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Keynesian economic theory |
The theory that a government policy of increasing spending and cutting taxes could stimulate the economy in a recession |
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Monetary policy |
The management of the money supply and interest rates by the Federal Reserve Bank |