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21 Cards in this Set
- Front
- Back
Economics
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The study of decisions
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Trade-Offs
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i.e. environment & pollution; increase in production leads to the decrease in environmental value. |
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Opportunity Cost
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It is what you do not have because you have something else. -Money is NOT an opportunity cost |
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Supply & Demand
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Demand: the amount of the good that buyers are willing and able to purchase. (also know how to draw the graph) |
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Cost-Benefit Analysis
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Choosing to do something if the benefit is greater than the cost.
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Externalities
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When an individuals actions and transactions affect the well being of some additional 3rd Party. The individual doesn't feel the costs of their benefit; The price does not reflect the whole cost. ~Can be positive or negative |
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Spillover
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Benefit: a positive externality; economic benefit shifted onto society. |
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GDP and GNI
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GDP- Value Produced GNI-Value earned -Both are national measures of wealth and production -Per capita is for standard of living calculations (poverty) |
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Environment and Production
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(know how to draw the graph) |
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World Poverty
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-living on $1.90 per day -900 million or 13% in poverty -Many ways to measure: health care, income distribution, education, political stability, etc. |
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Fighting Poverty
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-Increasing infrastructure (the government) -Increasing productivity (farming) -Decreasing corruption (political/governmental) |
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Education
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-different externalties; incentives to cheat |
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y = f ( L, N, K, H)
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Y= the national output or amount of goods a country produced; influenced by all of the resources in this equation. L= Labor (hours) N=Natural resources K= Physical capital (machines, buildings) H=human capital (brains) |
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Housing
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-home apprectiation = 4% -maintenance costs= 2.5% |
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Subprime Mortgage Crisis
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-This caused demand for homes to decrease and prices to decrease, causing issues for banks as about 1/3 of homes foreclosed. (know the graph) |
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Rent Control
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-Price Ceiling: max amount. -Leads to shortages; less apartments available, low maintenance, and an increase in discrimination. -Keeps housing cheaper, but has costs ^ |
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Public Housing
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-Government funded or subsidized housing -lazy, crime, poverty, dysfunction, addiction |
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Healthcare |
-Constrained vs. Unconstrained (think of triangles) -$2.9 trillion dollars benefits and cons |
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Insurance
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BIG PART of the Affordable Care Act (Obamacare) |
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Diminishing Marginal returns
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-You want to be at the 50/50 of your happiness. |
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Affordable Care Act (Obamacare)
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-affordable -requires everyone to pay -preventative care COSTS (to companies and individuals) vs. BENEFITS (who has insurance) -Is this equitable AND efficient? What this is trying to do, but can you do both? -Now everyone has insurance and is taken care of. IS HEALTH CARE A RIGHT? |