FreeEconHelp.com, Learning Economics... Solved!: glossary

FreeEconHelp.com, Learning Economics... Solved!: glossary

Showing posts with label glossary. Show all posts

Showing posts with label glossary. Show all posts

5/15/12

Economics Glossary

Jeff 21:25

Economics Glossary

The following economics glossary is a directory of the most common vocabulary words found in economics. Click on the associated letter to find a list of words beginning with that letter. Or you may type the word you are looking for in the search box to the right, and try to use quotes ("") to get better results. For example, if you are looking for: long run average total cost curves, you may get a variety of posts and Q and As about the topic, but if you search for "long run average total cost curve" you are more likely to get the glossary entry:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

If you cannot find a word or have an issue/are confused by the definition please fill out the form in the "contact" area above and I will try to get back to you promptly.

Economics Glossary: Y

Jeff 09:11

Economics Glossary: Y

Y-Axis – On a Cartesian coordinate system, the Y axis is the vertical line where a variable can be plotted.

Y- Intercept – The point at which a curve intersects the Y-Axis.

Economics Glossary: X

Jeff 09:11

Economics Glossary: X

X-Axis – On a Cartesian coordinate system, the X axis is the horizontal line where a variable can be plotted.

X-intercept – The point at which a curve intersects the X-axis.

Economics Glossary: W

Jeff 09:10

Economics Glossary: W

Wages – Income paid for the services provided from labor.

Wealth, net worth – A stock measure of the total value of what a household owns minus what it owes.

Economics Glossary: V

Jeff 09:08

Economics Glossary: V

Value added – The difference between the value/price of a good as they leave one stage of production and the cost of the inputs as they entered that stage.

Variable – A measure that can change.

Velocity of money – The number of times a dollar bill (or other currency) changes hands on average during one year. This can be measured as the nominal GDP value divided by the stock of money.

Vicious-circle-of-poverty hypothesis – The idea that poverty is self-perpetuating because poor countries are not able to save and therefore invest enough to accumulate enough capital to grow out of poverty.

Voucher – A token given by the government to households which they can use to buy or receive certain goods and services.

Economics Glossary: U

Jeff 09:07

Economics Glossary: U

Unconstrained supply of labor – The amount a household would like to work within a given time period at the current wage rate if it was able to find work.

Underground economy – The part of the economy where transactions take place and income is generated but it is not recorded and therefore not included in the calculation of GDP.

Economics Glossary: T

Jeff 08:59

Economics Glossary: T

Tariff – A tax on imports.

Tax incidence – The division of the burden of a tax between the buyer and the sellers in a market.

Economics Glossary: S

Jeff 08:55

Economics Glossary: S

Saving – The amount of income that is not used for consumption expenditures or paid in net taxes.

Scarce – Limited in nature.

Scarcity – The condition that exists because our wants exceed the ability of resources to satisfy them.

Economics Glossary: R

Jeff 08:51

Economics Glossary: R

Rate of return regulation – A regulation that sets the price at a level that enables a firm to earn a specific rate of return.

Ration coupons – A method of allocating goods using a nonprice mechanism. Involves tickets or coupons that entitle individuals to purchase or receive a certain amount of a given good or service within a given time period.

Economics Glossary: Q

Jeff 08:48

Economics Glossary: Q

Quantity demanded – The amount of a product that a household would be willing and able to buy within a certain time frame at the current market price.

Quantity of labor demanded – The total labor hours that all firms in the economy plan to hire at a given real wage rate during a certain period of time.

Economics Glossary: P

Jeff 08:43

Economics Glossary: P

Part time for economic reasons – People with a job who work less than 35 hours per week but are looking for full time work, but cannot find it because of the current economic situation.

Part-time workers – People who generally work less than 35 hours per week.

Economics Glossary: O

Jeff 01:12

Economics Glossary: O

Ockham’s razor – The ideal that irrelevant detail should be cut away, or the simplest approach is probably the best.

Okun’s law – The theory that in the short run, the unemployment rate will decrease by about 1 percent for every 3 percent increase in real GDP. This relationship doesn’t necessarily hold true in all cases.

Economics Glossary: N

Jeff 01:07

Economics Glossary: N

Nash equilibrium – An equilibrium where each player takes the best possible actions based on the action taken by the other player.

National debt – A stock measure. The total amount the federal government borrowed to make expenditures that exceeds the total revenue received from taxes. This total is added up every year and is the sum total of all past government budget surpluses and deficits.

Economics Glossary: M

Jeff 00:25

Economics Glossary: M

M1 (transactions money) – Money that can be used directly to conduct transactions, such as currency, traveler’s checks, and checkable deposits owned by individuals and businesses.

M2 (broad money) – M1 plus savings accounts, money market accounts, and other types of accounts that can be liquidated quickly but not immediately.

5/14/12

Economics Glossary: L

Jeff 23:58

Economics Glossary: L

Labor – The work time and effort that people commit to producing the goods and services in the economy.

Labor demand curve – a graph that shows the quantity of labor that firms will want to employ at every given wage rate.

4/10/12

Economics Glossary: K

Jeff 06:03

Economics Glossary: K

Keynesian economics – The belief that the market economy is naturally unstable and needs government intervention to achieve full employment and long term economic growth. Started by John Maynard Keynes in response to the great depression and is still one of the most popular macroeconomic schools of thought in competition with classical economics.

Economics Glossary: I

Jeff 05:59

Economics Glossary: I

Identity – A statement or equation that is always true.

Implementation lag – The time that it takes to put a policy into effect once policy makers realize that the economy is in a recession or expansion. Generally it takes 3 months or more to collect the data, 3 months or more to analyze it, and 3 months or more to navigate the process to implement the change. In this example, it would take 9 months from the time of the incident to enact the desired policy.

4/1/12

Economics Glossary: H

Jeff 07:05

Economics Glossary: H

Heckscher-Ohlin theorem – A theory that explains why a country has a comparative advantage based on its endowments of the factors of production. It argues that a country will have a comparative advantage in a certain good or service if factors of production used to produce that good are service are relatively abundant in the country and they are used intensively in the production process.

Herfindahl-Hirschman Index – The percentage market share squared of each firm summed over the 50 largest firms within a market. The higher the number the more oligopolistic the market is because few firms have a relatively large percentage, but if each firms market share is small, the resulting Herfindahl-Hirschman Index will be small.

Economics Glossary: G

Jeff 02:59

Economics Glossary: G

Game theory – The tool that economists use to study strategic behavior. This type of behavior recognizes the mutual independence of the players and takes this into account during its analysis.

GDP price index – An average of all of the current prices of goods and services included in the calculation of GDP and is expressed as a percentage of the base-year prices.

3/30/12

Economics Glossary: F

Jeff 07:06

Economics Glossary: F

Factor endowments – The initial quality and quantity of the land, labor, and natural capital of a given country.

Factor markets – Markets where factors of production are bought and sold (land, labor, capital, etc.)

Factors of production – The productive resources that are used as inputs in the production of goods and services. The four factors of production are land, labor, capital and entrepreneurship.

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