Production, Firms, and the Market
This is known as a privately owned organization engaged in business activities.
What is a Firm?
Widely known for his work on “The communist manifesto”, this person was influential in the shaping of Soviet economics in the twentieth century.
Who is Karl Marx?
This measurement is used to track the general increase in prices for an economy.
What is CPI (Consumer Price Index)?
Due to the fact that 0% UE is basically impossible to achieve, economist have given this range of percent for the term “full employment”
What is 3-5%?
The name for a good for which demand increases as the price increases due to its exclusive nature and appeal as a status symbol.
What is a Veblen Good?
These are known as the two most important parts to a successful production.
What is efficiency and productivity?
This person believed in a theory of self-interest, in which an invisible hand guides people in making decisions, causing a positive outcome for the market.
Who is Adam Smith?
Often described using a car engine as an example, inflation and deflation would have this type of effect on both an economy and engine.
What is heating and cooling?
During inflation, one can expect this type of employment to occur.
What are high employment rates?
A product that people consume more of as the price rises and vice versa.
What is a Giffen Good?
Type of costs not included among expenses on the income statement of a business, including an owner's own work hours or capital that could have gotten interest somewhere else.
What are implicit costs?
The physiocrats believed this resource was the true wealth of a nation.
What is agriculture?
When a nation experiences low GDP growth, high inflation, and high unemployment, it is known as this type of inflation.
What is Stagflation?
Known as the 6 causes of unemployment.
What are Structural, geographical, frictional, clinical, classical, and seasonal unemployment?
When an unchanged quantity is offered for sale at all possible prices.
What is a Rare Good?
The type of exchange which consists of illegal goods in short supply, as when some people buy up as much of a good as possible, stockpile it, and sell it for a higher price.
What is the Black Market?
John Locke was known as a philosopher and political thinker, who presented this idea when it came to human rights
What are Natural Rights?
These cycles will continue in the direction of their momentum until an external factor intervenes and breaks the cycle. A well-known example of this in economics is hyperinflation.
What is a Vicious Cycle?
Unemployment can have this effect on the population's general income.
What is Lower Income?
The type of curve is backward bending due to the operation of income effect and substitution effect of wage rate changes.
What is a Labour supply curve?