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GraphsGraphs EconomicEconomicEquationsEquations Unit 1Unit 1 Unit 3Unit 3KeyKey
TermsTerms Unit 2Unit 2
- $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
The opportunity cost of producing the good or service is lower for that individual than for other people
Comparative Advantage is when?
- $400- $400
The decision of individual producers and consumers largely determine what, how, and for whom to produce, with little government involvement in the decisions
What is Market Economy?
- $500
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
Recessionary GAP
- $100
Long Run Aggregate Supply Demand
What kind of graph is this?
- $200
Circular Flow Diagram
What kind of graph is this?
- $300
Demand and Supply (Basic)
What kind of graph is this?
- $400
Business Cycle
What kind of graph is this?
- $500
Production Possibility Graph
What kind of graph is this?
- $100
What is the Marginal Unit Cost equation?
opportunity cost / units gained
- $200
(Year 2 – Year 1 / Year 1) x 100
What is the % change in GDP equation?
- $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
- $200
What is allocative efficiency?
When resources and goods are distributed.
- $300
What is productive efficiency?
When resources and goods are being utilized to their maximum.
C4-$300
- $400
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
- $300
What is Nominal Gross Domestic Product?
is the market value (money-value) of all final goods and services produced in a geographical region
C5-$400
- $400
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.
- $500
It is the deviation of the actual rate of unemployment from the national rate (due to recession)
What is cylical unemployment?
- $100
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.
- $200
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
C6-$400
- $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
