Term
| monopolistic competition. |
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Definition
| An industry in which there are many competitors with specific marketing niches is likely to be characterized by |
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Definition
| An industry in which there are just a few large firms is likely to be characterized by |
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Definition
| Whether a firm stays in business or shuts down depends heavily on the concept of |
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Term
| inversely related to the number of firms competing in the industry |
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Definition
| Economic theory would suggest that the profitability of an industry would be |
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Term
| the marginal cost curve, but only that portion that is above the minimum of average variable cost. |
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Definition
| Under perfect competition, the supply curve is |
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Term
| the percentage of sales in the industry by the largest firms. |
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Definition
| An indicator of the degree of competition in an industry is the concentration ratio. It measures |
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Term
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Definition
| Local telephone service was once an area in which consumers had no choices. Many young people no longer use “land lines” preferring instead to use their cellular phones. This means that the market has moved toward |
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Definition
| If MR>MC then when an additional unit is sold the firm's |
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Definition
| economists consider this the worst: |
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Term
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Definition
| Gross Domestic Product is counted using two methods: one which counts all the ways people _____ money and another which counts all the ways people _____ money. |
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Term
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Definition
| Gross Domestic Product is counted using two methods: one which counts all the ways people _____ money and another which counts all the ways people _____ money. |
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Term
| it consistently overstates the increase in the cost-of-living |
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Definition
| The Consumer Price Index (CPI) is a heavily criticized measure of inflation because |
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Term
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Definition
| it consistently overstates the increase in the cost-of-living |
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Term
| The periods where the rate of growth, while still positive, slows |
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Definition
| On a graph of real gross domestic product over time, recessions appear as: |
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Term
| counted, but goods produced by American firms in foreign countries are not counted. |
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Definition
| In measuring Gross Domestic Product, goods produced by foreign firms in the United States are |
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Term
| the percentage year-to-year increase |
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Definition
| Inflation is measured using _________ in a price index. |
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Term
| it fails to count home production. |
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Definition
| One problem with using Real Gross Domestic Product as a measure of social welfare is that |
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Term
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Definition
| In 2005, General Motors announced a 20% reduction in its staffing levels and the closure of many assembly plants. Those laid off as a result would likely be classified as |
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Term
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Definition
| Congress and the President have control of the tax system and government spending. As a result, their policies will directly impact |
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Term
| an increase in government spending |
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Definition
| Use the Aggregate Supply- Aggregate Demand model to determine which of the following will lead to higher prices |
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Term
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Definition
| Use the Aggregate Supply - Aggregate Demand model to determine which of the following will lead to higher aggregate output |
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Term
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Definition
| Any event that creates a “crisis in confidence” is likely to lead to |
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Term
| decrease in aggregate supply. |
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Definition
| An economist worrying about the economic impact of environmental regulations would model that impact with a |
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Term
| deal with shifting curves |
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Definition
| The use of a backward-L shaped aggregate supply curve allows us to ________ in a way that other shapes would not. |
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Term
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Definition
| The Federal Reserve has indirect control over short term interest rates and as a result their ability to control economic activity is through |
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Definition
| Disagreements about the shape of the aggregate supply curve focus on the degree of _________ in the economy. |
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Term
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Definition
| Federal spending is typically ____________ percent of GDP |
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Term
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Definition
| Government spending reduces the money available for private spending |
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Term
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Definition
| those items for which a previously passed law requires the money be spent |
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Term
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Definition
| those items for which a previous law does not exist |
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