D089 Principles of Economics
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1. Absolute Advan- The capability to produce more of a given product using less of a given resource
tage than a competing entity
2. Absolute Quota Strictly limiting the quantity of goods that may enter a country
3. Accounting Profit Total revenues minus explicit costs, including depreciation
4. Acquisition When one firm purchases another
5. Ad Valorem Tar- Import tax based on a fixed percentage of the assessed commercial value of
iffs imported goods
6. Adverse Selec- A process in which markets deteriorate when buyers and sellers have access to
tion different or imperfect information; also known as asymmetric information
7. Aggregate De- An economic measurement of the total amount of demand for all finished goods
mand and services produced in an economy
8. Aggregate De- Shows the total spending on domestic goods and services at each price level
mand Curve
9. AD-AS Model A model that shows what determines total supply or total demand for the economy
and how total demand and total supply interact at the macroeconomic level
10. Aggregate Sup- The total supply of goods and services available to a particular market from
ply producers
11.
, D089 Principles of Economics
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Aggregate Sup- The total quantity of output (real GDP) that firms will produce and sell at each
ply Curves price level
12. Allocative Effi- Producing goods and services demanded by consumers at a price that reflect the
ciency marginal cost
13. Asset Something or someone of any value; any portion of one's property or effects so
considered
14. Autarky National economic self-sufficiency
15. Automatic Stabi- A type of fiscal policy designed to offset fluctuations in the nation's economy
lizers through normal operations such as, unemployment benefits
16. Balanced Budget When the government spends exactly the same amount as it receives in a given
year
17. Bank Runs When a large number of customers of a bank or other financial institution with-
draw their deposits simultaneously over concerns of the bank's solvency
18. Barriers to Entry The legal, technological, or market forces that may discourage or prevent potential
competitors from entering a market
19. Barter Trading one good or service for another without using money
20. Base Year Starting point from which changes in prices are measured
21. Basket of Goods A fixed set of consumer products and services valued on an annual basis
and Services
22. Broadly Defined Markets that tend to be fairly inelastic and have no good substitutes
23. Budget Con- Represents all the combinations of goods and services that a consumer may
straint purchase given current prices within his or her given income
, D089 Principles of Economics
Study online at https://quizlet.com/_92y0cu
24. Budget Deficit When the federal government spends more money than it receives in taxes in a
given year
25. Budget Surplus When the government receives more money in taxes than it spends in a year
26. Business Cycle The economy's relatively short-term movement in and out of recession
27. Business Cycles A series of growing and shrinking periods of economic activity measured by
increases and decreases in GDP
28. Capital Goods Goods that are used in producing other goods rather than being bought by
consumers
29. Cartels A group of firms that collude to produce the monopoly output and sell at the
monopoly price
30. Central Banks The principal monetary authority of a country or monetary union; it normally
regulates the supply of money, issues currency, and controls interest rates
31. Circular Flow An economic model that shows the flow of money and goods through the econ-
Model omy. The most common form of this model shows the circular flow of income
between the household sector and the business sector
32. Coins and Cur- The coins and bills that circulate in an economy that are not held by the U.S
rency in Circula- Treasury, at the Federal Reserve Bank, or in bank vaults
tion
33. Collude When firms act together to reduce output and keep prices high
34. Command Econ- An economic system in which production, investment, prices, and incomes are
omy determined centrally by a government
Study online at https://quizlet.com/_92y0cu
1. Absolute Advan- The capability to produce more of a given product using less of a given resource
tage than a competing entity
2. Absolute Quota Strictly limiting the quantity of goods that may enter a country
3. Accounting Profit Total revenues minus explicit costs, including depreciation
4. Acquisition When one firm purchases another
5. Ad Valorem Tar- Import tax based on a fixed percentage of the assessed commercial value of
iffs imported goods
6. Adverse Selec- A process in which markets deteriorate when buyers and sellers have access to
tion different or imperfect information; also known as asymmetric information
7. Aggregate De- An economic measurement of the total amount of demand for all finished goods
mand and services produced in an economy
8. Aggregate De- Shows the total spending on domestic goods and services at each price level
mand Curve
9. AD-AS Model A model that shows what determines total supply or total demand for the economy
and how total demand and total supply interact at the macroeconomic level
10. Aggregate Sup- The total supply of goods and services available to a particular market from
ply producers
11.
, D089 Principles of Economics
Study online at https://quizlet.com/_92y0cu
Aggregate Sup- The total quantity of output (real GDP) that firms will produce and sell at each
ply Curves price level
12. Allocative Effi- Producing goods and services demanded by consumers at a price that reflect the
ciency marginal cost
13. Asset Something or someone of any value; any portion of one's property or effects so
considered
14. Autarky National economic self-sufficiency
15. Automatic Stabi- A type of fiscal policy designed to offset fluctuations in the nation's economy
lizers through normal operations such as, unemployment benefits
16. Balanced Budget When the government spends exactly the same amount as it receives in a given
year
17. Bank Runs When a large number of customers of a bank or other financial institution with-
draw their deposits simultaneously over concerns of the bank's solvency
18. Barriers to Entry The legal, technological, or market forces that may discourage or prevent potential
competitors from entering a market
19. Barter Trading one good or service for another without using money
20. Base Year Starting point from which changes in prices are measured
21. Basket of Goods A fixed set of consumer products and services valued on an annual basis
and Services
22. Broadly Defined Markets that tend to be fairly inelastic and have no good substitutes
23. Budget Con- Represents all the combinations of goods and services that a consumer may
straint purchase given current prices within his or her given income
, D089 Principles of Economics
Study online at https://quizlet.com/_92y0cu
24. Budget Deficit When the federal government spends more money than it receives in taxes in a
given year
25. Budget Surplus When the government receives more money in taxes than it spends in a year
26. Business Cycle The economy's relatively short-term movement in and out of recession
27. Business Cycles A series of growing and shrinking periods of economic activity measured by
increases and decreases in GDP
28. Capital Goods Goods that are used in producing other goods rather than being bought by
consumers
29. Cartels A group of firms that collude to produce the monopoly output and sell at the
monopoly price
30. Central Banks The principal monetary authority of a country or monetary union; it normally
regulates the supply of money, issues currency, and controls interest rates
31. Circular Flow An economic model that shows the flow of money and goods through the econ-
Model omy. The most common form of this model shows the circular flow of income
between the household sector and the business sector
32. Coins and Cur- The coins and bills that circulate in an economy that are not held by the U.S
rency in Circula- Treasury, at the Federal Reserve Bank, or in bank vaults
tion
33. Collude When firms act together to reduce output and keep prices high
34. Command Econ- An economic system in which production, investment, prices, and incomes are
omy determined centrally by a government
