VWL 1, FFHS, Semester 3
VWL 1, FFHS, Semester 3
VWL 1, FFHS, Semester 3
Set of flashcards Details
| Flashcards | 286 |
|---|---|
| Language | Deutsch |
| Category | Macro-Economics |
| Level | University |
| Created / Updated | 14.12.2015 / 22.05.2016 |
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ability-to-pay principle
the idea that taxes should be levied on a person according to how well that person can shoulder the burden
absolute advantage
the comparison among producers of a good according to their productivity
accounting profit
total revenue minus total explicit cost
adverse selection
the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party
agent
a person who is performing an act for another person, called the principal
aggregate demand curve
a curve that shows the quantity of goods and services that households, firms and the government want to buy at each price leve
aggregate risk
risk that affects all economic actors at once
aggregate supply curve
a curve that shows the quantity of goods and services that firms choose to produce and sell at each price level
appreciation
an increase in the value of a currency as measured by the amount of foreign currency it can buy
Arrow’s impossibility theorem
a mathematical result showing that, under certain assumed conditions, there is no scheme for aggregating individual preferences into a valid set of social preferences
automatic stabilizers
changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession, without policymakers having to take any deliberate action
average fixed cost
fixed costs divided by the quantity of output
average revenue
total revenue divided by the quantity sold
average tax rate
total taxes paid divided by total income
average total cost
total cost divided by the quantity of output
average variable cost
variable costs divided by the quantity of output
balanced trade
a situation in which exports equal imports
Bank of England
the central bank of the United Kingdom
bank run
when a substantial number of depositors suspect that a bank may go bankrupt and withdraw their deposits
benefits principle
the idea that people should pay taxes based on the benefits they receive from government services
bond
a certificate of indebtedness
budget constraint
the limit on the consumption bundles that a consumer can afford
budget deficit
a shortfall of tax revenue from government spending
budget surplus
an excess of tax revenue over government spending
business cycle
fluctuations in economic activity, such as employment and production
capital
the equipment and structures used to produce goods and services
capital flight
a large and sudden reduction in the demand for assets located in a country
cartel
a group of firms acting in unison
catch-up effect
the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich
central bank
an institution designed to regulate the quantity of money in the economy
circular-flow diagram
a visual model of the economy that shows how money and production inputs and outputs flow through markets among households and firms
classical dichotomy
the theoretical separation of nominal and real variables
closed economy
an economy that does not interact with other economies in the world
Coase theorem
the proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own
collective bargaining
the process by which unions and firms agree on the terms of employment
collusion
an agreement among firms in a market about quantities to produce or prices to charge
commodity money
money that takes the form of a commodity with intrinsic value
common currency area
a geographical area, possibly covering several countries, in which a common currency circulates as the medium of exchange
common resources
goods that are rival but not excludable
comparative advantage
the comparison among producers of a good according to their opportunity cost
