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50 Cards in this Set
- Front
- Back
Greek word which meant house, abode, dwelling |
"OIKOS" |
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Means to manage distribute to deal out or dispense |
Nemo |
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Meaning the management and administration of a household |
Oikonomia |
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Condition in which our wants are greater than the limited resources available |
Scarcity |
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It is the science of scarcity |
ECONOMICS |
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It is the proper allocation and efficient use of available resources for maximum satisfaction of human wants |
ECONOMICS |
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The science which deals with the study of how individual households firms and government plan raisa locate and use this country sources to satisfy human wants |
ECONOMICS |
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It is the big picture it studies the economy as a whole |
MACROECONOMICS |
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It is the smaller picture it studies the individual units |
MICROECONOMICS |
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It was a worldwide economic depression that lasted for 10 years |
The great depression |
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The great depression began on black friday on what date |
October 24 1929 |
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It says that recessions cure themselves and that government cannot cure recessions |
Classical economics |
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It is the dominant school of economic thought before the great depression |
The classical economics |
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Believe that the government should intervene in economic affairs as little as possible |
The classical economics |
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It is the invisible hand theory |
Laissez-faire economics |
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He is the founder of classical economics |
Adam smith |
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He is the author of the wealth of nations which was considered as the economic bible |
Adam smith |
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This is considered as the economics bible |
The wealth of nations |
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It is a law that says "supply create its own demand" and it means that the very process of producing specific goods which supply is proof that other goods desired |
SAY'S LAW |
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Assumptions of the Classical Model |
Pure competition exists wages and prices are flexible people are motivated by self-interest people cannot be sold the money illusion |
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The author of general theory of employment interest and money |
John maynard keynes |
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According to him the problem with you session is inadequate aggregate demand |
Keynesian economics (John maynard keynes) |
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But with a according to him the cure for depression is government spending |
Keynesian economics (John maynard keynes) |
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The three major concerns of macroeconomics |
1 .Inflation 2. output growth 3. unemployment |
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True or False The goal of an economy is to have high inflation, high output growth and high unemployment |
FALSE The goal of an economy is to have LOW inflation, high output growth and LOW unemployment |
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It is an increase in the overall price level |
Inflation |
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True or False Keeping inflation low has been a goal of the government policy |
True |
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The main measure of how an economy is doing |
Aggregate output |
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It is the total quantity of goods and services produced in the economy in a given period |
Aggregate output |
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Periods during which aggregate output declines for two consecutive quarters |
Recession |
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A prolonged and deep recession is called |
Depression |
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A condition that occurs if there are qualified workers would be willing to work a prevailing wages but cannot find jobs |
Unemployment |
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- The percentage of the labor force unemployed - Is the key indicator of the economy's health |
Unemployment rate |
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Evaluate the success of an economy's overall performance economies look at four areas |
1.Output 2. employment 3.price stability 3. International trade |
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Goals of macroeconomics 1. A ___________ and growing level of national output 2. ___________ employment 3. ___________ or ___________ rising price level 4. Robust international trade with a stable foreign exchange rate on ___________ balancing imports |
1. A high and growing level of national output2. High employment stable or 3. Gently rising price level 4. Robust international trade with a stable foreign exchange rate on exports balancing imports |
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They play a vital role in influencing the economy |
The government |
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Refers to government policies concerning the use of tax and government expenditures to influence aggregate output |
Fiscal policy |
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Two types of fiscal policy |
Expansionary fiscal policy and Contractionary fiscal policy |
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It uses increase on government spending or cut/ reduce taxes to raise income |
Expansionary fiscal policy |
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Ss decrease in government spending or increases tax to reduce demand pull inflation |
Contractionary fiscal policy |
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Refers to the tool used by the bangko sentral ng pilipinas to control the supply of money |
Monetary policy |
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Types of monetary policy |
Easy money policy and tight money policy |
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Increase the supply of money to increase aggregate demand |
Easy money policy |
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Tightening the supply of money in order to reduce spending and control inflation |
Tight money policy |
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It consists of the buying of government securities firm or the selling of government securities to commercial banks to the general public |
Open market operations |
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Is the specified minimum percentage of its checkable deposits to the bank or christmas keep on deposit at the bsp in its district or hold as v cash |
Reserve requirement |
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The interest rate charged by the bank on loans that they grant |
Discount rate |
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A government policies that focus on stimulating aggregate supply instead of aggregate output a host of policies have been aimed at increasing the rate of growth |
Growth policies or supply side policies |
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Is the sum of consumer spending, investment spending, and gov spending plus net exports |
AGGREGATE DEMAND |
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Is a Function of disposable income |
CONSUMPTION |