Still cramming... I hate economics!
Norm statement from video
“The most important thing I think we need to spend money on would be after-school programs.”
Positive statement from video
“The largest share of any school district money is going to be in salaries and benefits.”
What does a ppc curve illustrate? Assumptions?
a. resources and technology are fixed
b. resources and technology are used efficiently
c. there are only 2 goods being produced.
Ppc curve illustrates different combos of the max. output that can be produced given the level of resources and technology and assuming efficient use of those inputs.
According to the video, “The business cycle”, why is the CPI an inaccurate measure for changes in the cost of living?
Since the CPI is a fixed market basket of goods and services, it does not acct for substitutions. Also doesn’t acct for changes in quality.
What problems exist in terms of measuring unemployment?
Underemployment, discouraged workers, overemployment
What is the difference bt GDP and GNP?
GDP- total value of final goods and services produced in the US in a given time period.
GNP- total value of final goods and services produced by US owned resources here and abroad.
In terms of components of GDP, explain why taxes and transfer payments are not part of GDP.
They are dollars changing hands without the recipient exchanging or producing goods or services.
“Measuring Economic Growth” evaluate the usefulness of GDP estimates in relation to economic well-being.
One problem in using GDP estimates as a measure of economic well-being is the value of production that takes place outside of the market. These activities have value but are not counted.
“Measuring Economic Growth” what countries are compared in terms of per capita GDP? Evaluate GDP as a measure of economic well being as it relates to these examples.
The Inuit ppl of Nunawat are an ex of a society with a very low GDP; however, this does not correlate to their quality of life. Sweden is an ex with a high rate of GDP, and India, with a very large population, has a low standard of living. Using GDP and per capita GDP estimates as a measure of well-being have their problems. They do not illustrate the distribution of output or income.
Explain how sticky prices may prevent markets or an economy from achieving equilibrium.
Wages fixed in short run, changes in market demand or market supply will cause shortages or surpluses that persist.
Ex of fiscal policy? Fiscal policy differ from monetary policy?
Fiscal- govt spending on programs to reduce poverty and defense spending during Vietnam.
Monetary- altering money supply and interst rates to slow inflation
Expansionary policy?
Increasing output production and employment to aid in recession.
Contractionary policy?
Decreasing output and employment to reduce inflationary problems.
Pros and cons of aid to developing countries.
Pros- reduce infant mortality rates, increase access to water, health services, sanitation improvements, education
Cons- inefficient distribution and dependence upon foreign aid
Why is Russia encountering major obstacles to market reform?
Capitalism is a new experience. Their culture, based on socialism and negative attitudes towards capitalism, has made the transition difficult.
Declining infrastructure, political instability, currency inflations, and lack of laws protecting businesses are other factors that make the transition difficult.
3 different types of financial intermediaries and characteristics
- accept deposits, offer loans
commercial banks; Banks offer checkable deposits.
Insurance companies and pension funds; no checking accts
Major functions of federal reserve bank.
-check clearing services
- fiscal agents for US treasury
- lenders of last resort
- bank regulators
“Financial Markets” what stimulates the demand for foreign currency?
- financial investment
- tourists
- importers and exporters
Monetary Policy? Who implements it?
Money and credit controls carried out by federal reserve in order to encourage economic growth while maintaining price stability and low levels of unemployment.
Factors that change or shift consumption.
- exchanges and real wealth
how does an increase in investment affect aggregate demand and supply?
Increase in investment will shift AD to the right by a multiple of the investment spending.
Explain the difference in the deficit and the debt in terms of personal finance.
Spend more than income, deficit. Borrowing to pay for the spending that exceeds income added to pat borrowing less any reductions or payments= total debt.
BRIEFLY DESCRIBE THE ATTEMPTS AT UTOPIAN SOCIETIES PRESNTED IN THE VIDEO ECONOMIES IN TRANSITION
People have believe the concept of a utopian society for many many years. The French revoloution and leter the Russian revoloution were driven by the desire of many to have a more equitable system. "hippie" Communes in the US were basted on utopian ideas. THe cideo highlights one of the most successful attempts, the Kibbutz.
EXPLAIN WHERE A KIBBUTZ FALLS IN THE ECONOMIC SPECTRUM BETWEEN SOCIALISM AND MARKET CAPITALISM
The kibbutz system is very unusual. It is based on teh Marzian concept of contrubuting what you can and only taking what you need. Whats left is used in the community. It is governed in a very democratic manner, meaning everything is done for the good of the community and the individuals in the community make the decisions by democratic voting.
“schools of thought” active monetary policy carried out by fed.
Feds cause problems. During great depression, let banks to fail and money supply decreased. Fed increased reserve ratio. Turned what should have been a recession into a depression.
“The most important thing I think we need to spend money on would be after-school programs.”
Positive statement from video
“The largest share of any school district money is going to be in salaries and benefits.”
What does a ppc curve illustrate? Assumptions?
a. resources and technology are fixed
b. resources and technology are used efficiently
c. there are only 2 goods being produced.
Ppc curve illustrates different combos of the max. output that can be produced given the level of resources and technology and assuming efficient use of those inputs.
According to the video, “The business cycle”, why is the CPI an inaccurate measure for changes in the cost of living?
Since the CPI is a fixed market basket of goods and services, it does not acct for substitutions. Also doesn’t acct for changes in quality.
What problems exist in terms of measuring unemployment?
Underemployment, discouraged workers, overemployment
What is the difference bt GDP and GNP?
GDP- total value of final goods and services produced in the US in a given time period.
GNP- total value of final goods and services produced by US owned resources here and abroad.
In terms of components of GDP, explain why taxes and transfer payments are not part of GDP.
They are dollars changing hands without the recipient exchanging or producing goods or services.
“Measuring Economic Growth” evaluate the usefulness of GDP estimates in relation to economic well-being.
One problem in using GDP estimates as a measure of economic well-being is the value of production that takes place outside of the market. These activities have value but are not counted.
“Measuring Economic Growth” what countries are compared in terms of per capita GDP? Evaluate GDP as a measure of economic well being as it relates to these examples.
The Inuit ppl of Nunawat are an ex of a society with a very low GDP; however, this does not correlate to their quality of life. Sweden is an ex with a high rate of GDP, and India, with a very large population, has a low standard of living. Using GDP and per capita GDP estimates as a measure of well-being have their problems. They do not illustrate the distribution of output or income.
Explain how sticky prices may prevent markets or an economy from achieving equilibrium.
Wages fixed in short run, changes in market demand or market supply will cause shortages or surpluses that persist.
Ex of fiscal policy? Fiscal policy differ from monetary policy?
Fiscal- govt spending on programs to reduce poverty and defense spending during Vietnam.
Monetary- altering money supply and interst rates to slow inflation
Expansionary policy?
Increasing output production and employment to aid in recession.
Contractionary policy?
Decreasing output and employment to reduce inflationary problems.
Pros and cons of aid to developing countries.
Pros- reduce infant mortality rates, increase access to water, health services, sanitation improvements, education
Cons- inefficient distribution and dependence upon foreign aid
Why is Russia encountering major obstacles to market reform?
Capitalism is a new experience. Their culture, based on socialism and negative attitudes towards capitalism, has made the transition difficult.
Declining infrastructure, political instability, currency inflations, and lack of laws protecting businesses are other factors that make the transition difficult.
3 different types of financial intermediaries and characteristics
- accept deposits, offer loans
commercial banks; Banks offer checkable deposits.
Insurance companies and pension funds; no checking accts
Major functions of federal reserve bank.
-check clearing services
- fiscal agents for US treasury
- lenders of last resort
- bank regulators
“Financial Markets” what stimulates the demand for foreign currency?
- financial investment
- tourists
- importers and exporters
Monetary Policy? Who implements it?
Money and credit controls carried out by federal reserve in order to encourage economic growth while maintaining price stability and low levels of unemployment.
Factors that change or shift consumption.
- exchanges and real wealth
how does an increase in investment affect aggregate demand and supply?
Increase in investment will shift AD to the right by a multiple of the investment spending.
Explain the difference in the deficit and the debt in terms of personal finance.
Spend more than income, deficit. Borrowing to pay for the spending that exceeds income added to pat borrowing less any reductions or payments= total debt.
BRIEFLY DESCRIBE THE ATTEMPTS AT UTOPIAN SOCIETIES PRESNTED IN THE VIDEO ECONOMIES IN TRANSITION
People have believe the concept of a utopian society for many many years. The French revoloution and leter the Russian revoloution were driven by the desire of many to have a more equitable system. "hippie" Communes in the US were basted on utopian ideas. THe cideo highlights one of the most successful attempts, the Kibbutz.
EXPLAIN WHERE A KIBBUTZ FALLS IN THE ECONOMIC SPECTRUM BETWEEN SOCIALISM AND MARKET CAPITALISM
The kibbutz system is very unusual. It is based on teh Marzian concept of contrubuting what you can and only taking what you need. Whats left is used in the community. It is governed in a very democratic manner, meaning everything is done for the good of the community and the individuals in the community make the decisions by democratic voting.
“schools of thought” active monetary policy carried out by fed.
Feds cause problems. During great depression, let banks to fail and money supply decreased. Fed increased reserve ratio. Turned what should have been a recession into a depression.