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Macro, micro, and everything in between
Models,models, models
Vocabulary
Supply & Demand
Section Four
100

The study of national economies using different models and data from the study of individual markets.

What is Macroeconomics

100
this illustrates the trade offs facing an economy that produces two goods.
What is the production possibility curve
100
The process of giving up goods to obtain others, and what you give up to obtain said good.
What is trade-off and opportunity cost
100
What does the Law of Demand state/refer to ?
What is an inverse relationship between price and quantity demanded. Or as the price of a product increase, quantity demanded falls, as the price of a product decreases, quantity demanded increases.
100

The main goal of the Land Ordinances of 1785 and 1787

What is generating revenue for the federal government through land sales

200
This is the rate that exists in an economy at full employment
What is Natural rate of unemployment
200
This is the idea that the exchange between individuals are voluntary and anyone engaging in exchanging benefits. (It is a model)
What is the circular-flow model
200
What is absolute advantage and comparative advantage?
What is when a party produces a good more efficiently than the other party How skillful someone is at making Good A versus Good B
200

A price ceiling sets a price here.

Where is below the equilibrium.

200

The western border to the United States in 1783

What is the Mississippi river

300
This is uses economic theory to make provable statements about phenomena.
What is Positive Economics
300

In the aggregate supply and demand models you will find these two curves

What are short run and long run

300
These are costs a firm must pay regardless of how many units it produces
What is fixed costs
300

Taste and preferences, number of consumers, price of related goods, income, and future expectations are all this.

What are the 5 shifters of demand.

300

Gives Congress the power to coin money

What is the Constitution

400
this is combines economic analysis with value judgments
What is normative economics
400
Who was the creator of the Keynesian Model
What is John Maynard Keynes
400
Define GDP and give the equation to find GDP, defining all of the terms in the equation
What is the market value of all final goods and services produced in a country in a specific period. GDP= C+I+G+Xn C-Household consumption; I-Firm investment; G-Government purchases; Xn-Foreign net exports
400
This is the shape of the demand curve and it measures the relative percentage changes of two variables.
What is demand elasticity
400

Robert P. Thomas calculated the net burden of the Navigation Acts by estimating this.

What is the impact on producer surplus

500

In the 1960's, this economist noted the relationship between the output gap and the level of cyclical unemployment

Who is Arthur Okun

500
For the circular flow model, what are the five major components of the model.
What is factor markets, households, firms, good and services, and government
500
Define Externalities , negative externalities, and postitve externalities
What is costs or benefits that affect a third party uninvolved in the btransaction in question a decision imposes some harm on others a decision results in positive effects for society or other individuals
500

Economies alternate between periods of growth and decline, this describes this cyclical fluctuation in total output in the short run

What is the Business Cycle

500

The reduction in trade during the war helped the American economy because it led to this.

What is Import Substitution