GTLE Economics flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

GDP expenditure identity

Gross domestic product equals consumption plus gross investment plus government purchases plus net exports (exports minus imports); it counts final output produced inside the country during the period.

Real GDP calculation

Real GDP divides nominal GDP by the price index (GDP deflator divided by 100), converting current-dollar output into constant-dollar terms so changes reflect quantity, not price.

Price elasticity of demand

Percentage change in quantity demanded divided by percentage change in price. Absolute value above one is elastic, below one inelastic, equal to one unit elastic.

Opportunity cost

The value of the next-best alternative forgone when a choice is made; it underlies comparative advantage and the production possibilities frontier's bowed-out shape.

Comparative advantage

A producer has comparative advantage in a good when its opportunity cost of producing that good is lower than another producer's; specialization by comparative advantage raises total gains from trade.

Profit-maximizing rule

A firm maximizes profit where marginal revenue equals marginal cost; in perfect competition price equals marginal revenue, so the rule becomes price equals marginal cost.

Monopoly marginal revenue

For a monopolist facing a downward-sloping demand curve, marginal revenue lies below price because selling an extra unit requires lowering price on all units sold.

Negative externality

A cost imposed on third parties not reflected in market price, causing marginal social cost to exceed marginal private cost and output to exceed the socially efficient level.

Money multiplier

In the simple model, the multiplier equals one divided by the reserve ratio; it shows the maximum expansion of deposits from an initial increase in bank reserves.

Open market operations

Central bank purchases or sales of government securities that change bank reserves; purchases expand the money supply, sales contract it.

Long-run Phillips curve

With expectations fully adjusted, the curve is vertical at the natural rate of unemployment; there is no permanent inflation-unemployment trade-off, only a short-run one.

Balance of payments identity

The current account plus the capital and financial account plus statistical discrepancy equals zero; a current account deficit corresponds to net capital inflow.

Backward design

A planning sequence that starts from desired results, then identifies acceptable evidence of learning, and only then designs instruction and learning activities aligned to both.

Bloom's revised taxonomy

A hierarchy of cognitive processes ordered remember, understand, apply, analyze, evaluate, create; objectives and assessment items should target the intended level.

Formative assessment

Ongoing, low-stakes evidence gathered during instruction to adjust teaching and give feedback; it is not used primarily for final grading or accountability judgments.

Summative assessment

Assessment administered at the end of a learning period to judge achievement against standards, typically graded and reported to students, parents, or institutions.

Item difficulty index

The proportion of examinees answering an item correctly; values near 1.0 indicate an easy item and near 0 indicate a hard item, informing test blueprint decisions.

Item discrimination index

The difference in proportion correct between high-scoring and low-scoring groups; values of about 0.30 or higher are generally acceptable, and negative values flag a flawed item.

Test reliability

The consistency of scores across occasions, forms, or raters; estimated by test-retest, alternate-form, internal consistency, and inter-rater methods, and necessary but not sufficient for validity.

Test validity

The degree to which evidence and theory support the intended interpretations and uses of scores; it is a property of score use, not of the test instrument alone.

Table of specifications

A test blueprint that cross-tabulates content topics with cognitive levels, specifying the number or weight of items per cell to ensure balanced coverage.

Analytic rubric

A scoring guide that evaluates separate criteria at described performance levels; it yields detailed diagnostic feedback and is more time-consuming than a holistic rubric.

Differentiated instruction

Adjusting content, process, or product in response to student readiness, interest, and learning profile, while holding the same essential learning goals for all students.

Universal design for learning

A framework offering multiple means of representation, engagement, and expression so that diverse learners can access curriculum without retrofitted individual accommodations.

FERPA

The U.S. federal law protecting education records; it gives parents and eligible students rights to inspect and seek amendment of records and limits disclosure without consent.

Mandatory reporting duty

A legal obligation for educators to report suspected child abuse or neglect to designated authorities within the state-specified timeframe; internal notification does not satisfy the duty.

Test security ethics

Educators must not coach students on specific secure items, alter answer documents, or reclassify students to manipulate accountability results; such acts violate assessment integrity.

Conflict of interest

A situation in which personal interest, outside employment, gifts, or relationships could impair professional objectivity; disclosure and recusal are standard remedies.

Fair use factors

Four statutory factors: purpose of use, nature of the work, amount used, and effect on the market; attribution alone does not establish permission to reproduce copyrighted material.

Accommodation versus modification

An accommodation changes access without changing what is measured; a modification changes content or standards and therefore alters the meaning of the resulting score.

Student data privacy

Educators must follow district policy and applicable privacy law when using apps, learning platforms, or public postings involving identifiable student work, grades, or behavior records.

Due process in grading

Applying published grading and discipline policies consistently, documenting decisions, and giving notice and an opportunity to respond before adverse academic action.