AcaDec - Economics

A graphical depiction of the relationship between the level of desired expenditures in an economy and the price level

A graphical depiction of the relationship between the quantity of goods and service firms wish to supply and the price level

A New Deal program that provided relief to farmers by reducing the acreage planted major crops and supported the prices of there crops

Total output divided by the quantity of labor employed in its production

A sudden rush of depositors seeking to withdraw funds from the banking system

Conditions that prevent firms from freely entering or exiting a market

Fluctuations in aggregate economic activity

Long-lived goods that are themselves produced and are used to produce other goods and services, but are not used up in the production process

An agreement between suppliers to restrict production and raise prices

A federal employment program during the New Deal that employed younger workers to work on wilderness conservation projects

The proposition that if private parties can bargain without cost over the allocation of resources, then they can solve the problem of externalities on their own

The ability to produce a good or service at the lower opportunity cost than other producers

A market with many buyers and sellers trading a homogenous good or service in which each buyer and seller is a price taker

Two goods for which a rise in the price of one leads to a decline in the demand for the other

An index constructed by comparing the cost of purchasing a fixed basket of goods at different times

The difference between the amount that a buyer would be willing to pay for a good or service and the price actually paid

Spending by households on goods and services, with the exception of the purchase of new housing

The phase of a business cycle in which the economy is growing more slowly that its long-run average

The decrease in private investment that occurs as a result of a reduction in government saving or an increase in government borrowing

Coins and bills in the hands of the public

Unemployment caused by deviations of output from its potential level

An international agreement that went into effect in 1924 that was designed to end German hyperinflation and enable Germany to make reparations payments as specified by the Versailles Treaty

The reduction in total surplus that results from a market distortion such as a tax

A graphical representation of the quantity of a good or service demanded as a function of the price

A table showing the relationship between the price of a good or service and the quantity demanded

A severe recession

The property whereby each additional increase in inputs results in a smaller increase in the quantity produced

The interest rate that the Federal Reserve charges banks when they must borrow reserves from it

The difference between the revenue realized by a producer and the opportunity cost of production

The percentage change in a quantity demanded or supplied as a result of a one percent change in price

An individual who takes on the risk of attempting to create new products or services, establish new markets, or develop new methods of production

A situation in which the forces in a system are in balance so that the situation is stable and unchanging

The ability to prevent buyers from enjoying the benefits of consuming a good or service without paying for it

The phase of the business cycle in which the economy is growing more quickly that its long-run average

When the action of one person affects the well-being of someone else, but where neither party pays nor is paid for these effects

Legislation pass in 1938 that established a federal minimum wage, prohibited the employment of children younger than sixteen, and established overtime pay for a workweek over forty-four hours

A New Deal agency created to channel funds to state and local relief efforts

The rate that banks charge other banks when they lend reserves

Goods or services that are purchased by their ultimate user

The institutions through which individuals with saving can supply these funds to persons or firms that wish to borrow money to purchase consumption goods or invest in physical capital

The use of taxes and spending to influence aggregate demand and through it the level of overall economic activity

A cost of production that is independent of the quantity produced

When a company or individual acquires assets in a foreign country that they will manage directly

Unemployment that results because it takes time for workers to search for the jobs that are best suited to their tastes and skills

The benefits that both individuals or nations realize from mutually beneficial exchange

An international exchange rate system in which national governments or central banks commit to the convertibility of their currency into gold at a fixed exchange rate

Spending on goods and services by federal, state, and local governments

The market value of final goods and services produced in an economy during a specified period of time

Skills and experience that are acquired through education, training, and on the job experience that increase a worker’s productivity

The case of a market with a small number of sellers, so that sellers have market power

A good for which the quantity demanded falls as buyers’ income increases

A general increase in prices

Formal and informal rules that structure human interactions

A third party who acts as a link between two others who wish to transact business

A good or service that is used in the process of producing other goods and services

Spending on capital equipment, inventories, and structures, including household purchases of new housing

A model of short-run aggregate economic fluctuations inspired by the analysis of British economist John Maynard Keynes, which attributes short-run deviations in output from potential to variations in the level of aggregate demand or aggregate supply

The sum of those individuals who are employed and those who are seeking paid work but have not found it

The fraction of the working-age population who are in the labor force

Holding other things equal, the quantity demanded is negatively related to the price

Holding other thing equal, the quantity supplied is positively related to the price

The ease with which a nonmonetary asset may be converted into money

The practice of elected officials trading votes

The additional cost of production associated with a small increase in the quantity produced

The additional revenue resulting from a small increase in the quantity produced

Conditions in which a competitive market fails to produce a socially effective outcome

The situation in which a producer knows that changes in the quantity produced will alter the price at which the good or service can be sold

The quantity of currency plus bank reserves

The use of the supply of money in the economy by the Federal Reserve to influence the level of aggregate demand

An asset that is a medium of exchange, unit of account, and store of value

The ratio of the money supply to the monetary base

The quantity of money available to the economy

A market in which there is free entry or exit, but every producer supplies a differentiated product and faces a downward sloping demand curve

A market in which there is a single producer

A New Deal program that established industry codes of conduct intended to reduce output and raise prices and wages

Legislation passed in 1935 that protected the right of workers to bargain collectively; also referred to as the Wagner Act

The level of unemployment that would exist if the economy were producing at its potential output

The difference between the purchases of foreign assets by domestic residents and the purchases of domestic assets by foreign residents

The difference between the value of goods and services sold to foreigners and the value of goods and services purchased from foreigners

The proposition that in the long run, changes in the quantity of money affect the price level but do not affect any real quantities

The name given to the policies introduced by President Franklin D. Roosevelt to combat the Great Depression

The production of goods and services valued at current prices

A good or service for which demand is positively related to the buyer’s income

Economic analysis used to guide decisions about what should be as opposed to what is the case

A relationship identified by Arthur Okun between the output gap and the level of cyclical unemployment

A market in which there are just a few producers

A tool used by the Federal Reserve to adjust the money supply by buying or selling U.S. government bonds in the financial market

The cost of any choice is what must be given up by making that choice

The difference between actual output and potential output

Describes an allocation in which the only way to make any individual or group of individuals better off would require making at least one other person worse off

Literally per head, used to denote an average value for a population

The purchase of shares of stock or bonds

The use of the tools of economic analysis to describe and explain economic phenomena and to make predictions about what will happen under particular circumstances

The quantity of output that would be produced by an economy if all of its resources were being employed at normal rates

When a business sells the same product to different buyers at different prices

The difference between the price that producers receive for supplying a good and their marginal cost of producing it

A graphical depiction of the combinations of output that can be produced by an economy

A good or service for which is it not possible to establish individual property rights

When individual choices are made by comparing the benefits and costs of different actions and then selecting the action that produces that greatest benefit

The production of goods and services valued at constant prices

Using political influence to increase one’s economic profits at the expense of others

The amount of reserves that the Federal Reserve requires banks to hold

The fraction of deposit liabilities that banks hold to meet depositor withdrawals

Goods or services characterized by the fact that one person’s enjoyment of the good orservice reduces the quantity available for others’ enjoyment

The difference between a person’s disposable income and his or her expenditures

An Inescapable fact of human existence that results from the fact that the available resources are always less than our limitless desires

Unemployment that results from the mismatch in skills, locations, or other important characteristics between job seekers and the available jobs

Two goods for which an increase in the price of one leads to an increase in the demand for the other

A graphical representation of the quantity of a good or service supplied as a function of the price

A table showing the relationship between the price of a good or service and the quantity supplied

Knowledge about the techniques by which inputs are transformed into the goods and services that households desire

The total revenue received by a supplier

The sum of consumer and producer surplus

The depletion of a common resource due to overuse

The agreement that ended the First World War

The state of actively seeking paid work but being unable to find it

The number of unemployed workers as a fraction of the total labor force

A cost of production that depends on the quantity produced

The ratio of nominal GDP to the money supply; in effect, the average number of transactions supported by each dollar of the money supply

The total value of assets used as a store of value

A federal program during the New Deal that directly employed artists, writers, photographers, and other workers on a variety of cultural projects; it also employed workers in the construction of a variety of public works projects such as roads and flood control dams