Economic Theories and Definitions
describe classical economics
Classical economics is an area of thought established by early economists and political thinkers Adam Smith, John Stuart Mill and others. The primary theory of classical economics states that market economies are, by definition, self-regulating systems that are ruled by the laws of production and exchange. With this basis, Smith also introduced the invisible hand, a metaphorical concept and justification for free markets that implies individuals acting within their own self-interests generate social benefits and the public good.
name one of the four types of ethical questions
Scientific
Religious/Cultural
Legal
Ethical
what is the difference between macro and mico economics?
Microeconomics and macroeconomics are related but separate approaches to studying the economy. Microeconomics is concerned with the actions of individuals and businesses, while macroeconomics is focused on the actions that governments and countries take to influence broader economies.
Economic Systems are typically thought to fall into three categories what are they?
Traditional, Command, Market
mixed can count
What is a Private Company and Public Company
A company that doesn't sell shares to the public. You can't buy shares of a private company in the stock market.
A company with publicly traded shares that anyone can buy in the stock market.
describe Laissez-faire capitalism or Keynesian economics
Laissez-faire is a theory of free-market capitalism directly opposed to government intervention such as regulation, subsidies, minimum wages, trade restrictions and corporate taxes. This theory states that economic prosperity is more obtainable in systems that governments "leave alone"—the direct translation of the French term laissez-faire.
Keynesian economics consists of multiple macroeconomic theories and models that offer explanations for how aggregate demand—the entirety of an economy's spending—impacts phenomena like economic output and inflation.
what ethical question is this: Under what conditions should people be kept artificially alive?
Ethical, Religious
Can be answered by moral reflection related to what it means to be ‘person’ and who should have responsibility for someone else’s life. Can also be influenced by religious beliefs.
what is the invisible hand
According to the invisible hand theory, individuals driven by self-interest and rationality will make decisions that lead to positive benefits for the whole economy.
what is ethics
Ethics are moral principles that govern a person's behavior or the conducting of an activity
What is a portfolio
A collection of financial assets such as stocks, bonds, and cash.
Describe monetarism economics or Malthusian economics
Monetarism is a macroeconomic theory that promotes the idea that governments can achieve economic stability by controlling monetary supply. The key principle of monetarism is that the total amount of money circulating in an economy is the main factor that determines its growth.
Malthusian economics refers to the idea that, while population growth may be exponential, the growth of food supply and the supply of other resources is linear. This theory states that when a population grows over time and outpaces a society's ability to produce resources, its standard of living may reduce and trigger a large depopulation event.
what ethical question is this: What type of diet allows for the best athletic performance?
Scientific
This can be answered by scientific analysis and testing
What is Monetary Policy?
Monetary policy is a set of tools used by a nation's central bank (The Fed) in our case to control the overall money supply and promote economic growth and employ strategies such as revising interest rates and changing bank reserve requirements.
what is the fed in simple terms
Managing U.S. monetary policy, regulating bank holding companies and other member banks, and monitoring systemic risk in the financial system.
what is Diversification:
A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize risk by combining different investments whose prices are not likely to move in step with one another.
describe two: Tragedy of the commons, Marxism, and Market socialism.
The tragedy of the commons is a theory that explains an economic problem relating to the consumption of resources and the over-exploitation of resources unregulated by formal governing bodies. This theory states that individuals who have unrestricted access to a resource are likely to act within their own self-interest and, through collective action, may deplete the resource in its entirety.
Marxism is a type of socioeconomic theory that interprets capitalism's impacts on an economy's development, labor and productivity. This theory posits that a capitalist society comprises two socioeconomic classes—the bourgeoisie, or the ruling class, and the proletariat, or the working class. In Marxism, the bourgeoisie controls the means of productions and the proletariat owns the labor that produces economic goods with value.
Market socialism, often called liberal socialism, is a theory that proposes the creation of an economic system that incorporates elements from both socialist planning and free enterprise. In a market socialist system, capital is owned cooperatively, but market forces define production and exchange rather than government oversight. Different market socialist models direct the profit generated by socially owned firms toward varying channels, such as employee remuneration, public financing or a social dividend.
what ethical question is this: Is killing someone always illegal?
Legal
This can be answered by examining the law.
Marginal utility
In economics, marginal utility describes the change in utility of one unit of a good or service. The marginal utility can be positive, negative, or zero. For example, when eating pizza, the second piece may bring more satisfaction than the first, indicating positive marginal utility.
CPI
The cost of this basket at a given time expressed relative to a base year is the consumer price index
what is a Dividend:
A cash payment from profits announced by a company’s board of director’s and distributed among stockholders.
name two of the three new economic theory
New growth theory
Moral hazard theory
Neoclassical Economics
what ethical question is this: What ice cream flavor should I buy?
Other
This question is a matter of personal preference even though the word ‘should’ is present.
both teams must create a skit using the words from the grammar list: Mr. Graddy is the judge :/
???
GPD
GROSS DOMESTIC PRODUCT The “market value” of all finished goods and services produced within a country’s borders in a specific period of time.
Market Capitalization
The total current market value of all outstanding shares of a company. Market capitalization is calculated by multiplying a stock's current price by the total number of outstanding shares.