Question

1. Concepts/Definitions

Neoclassical

Heterodox

Social Institutions

Social Classes

Land

Labor

Capital

Direct/Inverse Relationship

Fallacy of Composition

Paradox of Thrift

GDP

Feudalism

Capitalism

Socialism

Monetary Production

Nominal/real

Business cycle

Recession, Peak, Trough   

Unemployment (UE) Rate

Frictional/Structural/Cyclical UE

Full Employment (heterodox/neoclassical)

Consumer Price Index

Imports/Exports

Inflation/Deflation

Disinflation

Demand pull/Cost Push

Say’s Law

Civilian Labor Force

Nominal/Real Rate of Interest

Stocks/Flows

Answer 1

Neoclassical economics

The neoclassical economics is the broad theory that relates to demand and supply are the major factors of production, consumption and pricing of goods and services. It was emerged in 1900 to compete for the classical theories.

Heterodox

Heterodox is an analysis in economics that the variable considered outside of mainstream or orthodox school of thought.

Social institutions

It consists of a group of people who come together for a common purpose. Example are Religion, government, etc.

Social class

The social class is the division of society based on social values.

Land

It is all the natural resources used for production.

Labor

Labor is human capital. It measures the work done by human beings.

Capital

Capital generates wealth through investment. It is important among the four factors of production.

Direct/inverse relationship

Two variables are a direct relationship when one increases others also increases in the same manner and vice versa. Similarly, the inverse relationship between two variables when one variable increases then other variable decreases and vice versa.

Fallacy of composition

It is when someone infers something is true of the whole because it is true in whole.

Paradox of thrift

Keynes popularizes it. It states that people save moe at the time of recession. It leads to reduce aggregate demand in the economy.

GDP

It is the money value of all goods and services produced within a country during a specified year.

Feudalism

It is a social system that shows land ownership and duties.

Capitalism

It is the social system when the ownership of business and trade controlled by private individuals for the profit motive.