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Begin
Key
Terms
Graphs
Economic
Equations
Unit 1
Unit 2
Unit 3
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- $100
What is Labor Force?
The sum of the employed and the unemployed
- $200
What is Frictional Unemployment?
Unemployment due to the time workers spend in job
search (searching or waiting for jobs…recent college
graduates)
- $300
Comparative Advantage is when?
The opportunity cost of producing the good or service is
lower for that individual than for other people
- $400
What is Market Economy?
The decision of individual producers and consumers largely
determine what, how, and for whom to produce, with little
government involvement in the decisions
- $500
Recessionary GAP
The difference between the equilibrium real
production achieved in the short-run aggregate
market and full-employment real production
that occurs when short-run equilibrium real
production is less than full-employment real
production
- $100
What kind of graph is this?
Long Run Aggregate Supply Demand
- $200
What kind of graph is this?
Circular Flow Diagram
- $300
What kind of graph is this?
Demand and Supply (Basic)
- $400
What kind of graph is this?
Business Cycle
- $500
What kind of graph is this?
Production Possibility Graph
- $100
What is the Marginal Unit Cost equation?
opportunity cost / units gained
- $200
What is the % change in GDP equation?
(Year 2 – Year 1 / Year 1) x 100
- $300
What is the MPC equation?
Change in Consumption / Change in Disposable
Income
- $400
What is the MPS equation?
Change in Saving / Change in Disposable Income
- $500
What is the Consumer Price Index equation?
=price of market basket in a particular year / price of
the same market basket in base year
- $100
What are the four factors of production?
Land , labor , capital , entrepreneurship
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What is allocative efficiency?
When resources and goods are distributed.
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What is productive efficiency?
When resources and goods are being utilized to their
maximum.
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What are the five determinants of demand?
Taste in preference, number of consumers, price
of related goods, income, and expectations.
- $500
What are the six determinants of supply?
Prices/Availability of inputs, number of sellers,
technology, government action, opportunity cost,
and expectations
- $100
What is Gross Domestic Product?
the total value of all final goods and services produced in an
economy during a given period
- $200
What are the four components of Gross Domestic
Product?
Consumer Spending, Investment, Government Spending,
and Net Exports
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What is Nominal Gross Domestic Product?
is the market value (money-value) of all final goods and
services produced in a geographical region
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What is Real Gross Domestic Product?
It is the measure of the value of output economy, adjusted
for price changes. The adjustment transforms the nominal
GDP into an index for quantity of total output.
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What is cylical unemployment?
It is the deviation of the actual rate of unemployment from the
national rate (due to recession)
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What is aggregate demand?
Is the total amount of goods and services demanded in the
economy at a given overall prices and in a given time period.
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What is aggregate supply?
The total amount of goods and services produced in the
economy at a given overall price level in a given time
period.
- $300
What are the three shifters of aggregate supply?
Resources price, actions of the government, and productivity
- $400
What is fiscal policy?
The use of taxes, government transfers for
government purchases of goods and services to
stabilize the economy
- $500
What is discretionary fiscal policy?
The fiscal policy that is the result of deliberate actions
by policy makers rather than rules