Economics Eoct

Production Possibility Curve – A curve measuring the maximum combination of outputs that can be obtained from a given number of inputs
What is bail? – Bail is where a judge has allowed an accused person to go to their home while they await trial. Often this is made with a cost, or a house arrest.
Cartel – A formal organization of producers that agree to coordinate prices and production.
what does a trade deficit or surplus depend on? – the value of the currency
Modern State System – The peace of Westphalia (1648) began the _______________
If two people buy and sell without being forced, they have made a(n) ______. – voluntary exchange
Automatic stabilisers – Forms of government spending and taxation that change automatically to offset fluctuations in economic activity
law of demand – as the price of a product falls, the quantity demanded of that product will usually increase, ceteris paribus
How can externalities lead to the 'wrong' quantity of a good being produced or consumed? – – with negative externalities, goods end up being too cheap or under priced
– positive externalities cause prices to be too high leading to over production and consumption
– market failure
Economies of Scale – factors that cause a producer's average cost per unit to fall as output rises in the long run
A student earned a score of 940 on a national achievement test. The mean test score was 850 with a standard deviation of 100. What proportion of students had a lower score than the student with the score of 940? (Assume that test scores are normally distributed.)
Inelastic Demand – (def.) if consumers continue to buy a product if the price increases.
inventory – the quantity of goods that a firm has on hand
Loanable funds – Are that part of a country's money supply that is available for households and firms to borrow.
Profit – earnings after all expenses have been paid.
Money Demand – A relationship between the interest rate and the quantity of money that people are willing to hold at any given interest rate.
seasonal unemployment – unemployment linked to seasonal work.
demand schedule – a table that lists the various quantities of a product or service that someone is willing to buy over a range of possible prices
A student eаrned а scоre оf 940 оn а national achievement test. The mean test score was 850 with a standard deviation of 100. What proportion of students had a lower score than the student with the score of 940? (Assume that test scores are normally distributed.)
wants – non-essential goods or services you would like to have; products that add to the quality of life; also referred to as a luxury

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