The economic concept that human want & need is infinite
while available resources to fulfill those needs are finite
Scarcity
A decrease in income would cause a decrease in: Supply or
Demand
Demand
Which way would the demand curve shift if income increases?
The Right
Goods:
|
Country:
|
|
U.S.A.
|
Iran
|
|
Cars
|
60
|
20
|
Oil
|
45
|
100
|
Which country has absolute advantage in oil?
Iran
What type of disequilibrium is caused by minimum wage?
Surplus of labor
Marc goes out with Josue the night before his economic
exam. What is his opportunity cost?
Time for studying
Coke prices go up, what happens to pepsi’s demand?
Increase
Tariffs are placed on Italy.
What happens to Italian imports?
The number of products imported
lowers
What measures how much is produced in an economy in a given
year?
GDP
What incentive motivates an entrepreneur to take risks?
Profit
U.S.A. wants to increase economic growth what two things
should they spend money on?
Education Innovation
Welfare Tax
Cuts
Exports Stocks
Education and
Innovation
Prices rise, quantity demand decreases =
Law of Demand
Consumer & Producer interaction create what type of
price?
Equilibrium
This law states as prices decrease quantity supplied
decreases
Law of Supply
If fewer goods are available what will happen to the price
of remaining ones?
They will increase
What is the difference between aggregate demand and regular
demand?
Aggregate = demand
for entire economy vs. one market
Point of interaction equals what type of market price?
Equilibrium
What type of transfer is Medicaid?
In-kind
What do open markets encourage?
Innovation
Andrew puts $100 in a bank with a 10% reserve requirement. How much can be loaned?
$90
Gertrude was laid off from the play after auto tune
microphones were bought. What type of
unemployment is this?
Structural
Dividing a market basket from 1 decade by a market basket
from another calculates…
CPI
What market structure is characterized by a large number of
producers selling similar but differentiated products?
Monopolistic
competition
The combination of goods that can be produced with a set of
resources can be drawn on a graph using?
A production
possibility curve
If the government sets a price ceiling in a market what
occurs?
A shortage
By lowering the money supply the FED is trying to get rid
of…
Inflation
Decisions of the FED that determine the money supply are
called…
Monetary policies
The measure of how much a change in price affects the
quantity demanded…
The elasticity of
demand
Name the law: Prices
rise, quantity demand decreases
Law of Demand
If the dollar becomes stronger than other currencies what
happens?
Imports increase,
exports decrease
The U.S. embargo with Cuba prevents (or restricts)
Trade
If supply and demand increase at the same time what happens
to equilibrium quantity?
It will increase
What fiscal policy should be used during high unemployment?
Cut Taxes
A price floor in a market leads to…
A surplus
How can one measure economic growth rate?
Compare GDP from 2
periods
When the dollar depreciates who benefits?
Foreigners
Who plans a command economy?
The government
Reduced demand and factory closing = what type of
unemployment?
Cyclical
What is the difference between socialist and communist?
Socialism is the idea
that the working class, the class that produces the profits, the wealth, the
cars, houses, planes, steel, should take over and run things collectively,
democratically, for the benefit of the majority (who also "just happen"
to be workers too). In Socialism, the government plays a significant part in central planning, however there are some allowances for private citizens.
Communism is the idea
that society should not have classes - exploiters and exploited, oppressors and
oppressed, and so on. In a Communist economy all facets of the economy are controlled by the central planners including Factors of Production and Market Structure.
