Economic Basics
What is the study of how people, companies, and governments allocate resources?
What is economics?
What major event in 2001 contributed to the economic downturn leading to the Great Recession?
What is the 9/11 terrorist attacks?
What is the government's use of taxes and spending to influence the economy called?
What is Fiscal Policy?
What is another name for capitalism?
What is Free Market system?
What does GDP stand for and what does it measures?
What is Gross Domestic Product and it measures to the total value of all final goods and services produced within a nation's physical boundaries over a given period of time?
This branch of economics looks at the overall economy, including GDP and unemployment.
What is macroeconomics?
What is the name of the high-risk loans given to borrowers with low credit scores that contributed to the crisis?
What is Subprime mortgage loans?
What is the maximum amount the U.S. government is allowed to borrow called?
What is Debt Ceiling?
This market structure has many sellers offering slightly different products.
What is Monopolistic competition?
What is the percentage of people in the labor force who are jobless and actively seeking work?
What is the unemployment rate?
This term describes the flow of resources through production, distribution, and consumption in a society.
What is the economy?
What year did housing prices peak before collapsing during the Great Recession?
What is 2006?
Traditionally the US Federal Government has run at a budget ________________.
What is Budget deficit?
What is the price point where quantity demanded equals quantity supplied?
What is Equilibrium price?
What is the term for a period of rising average prices across the economy?
What is inflation?
True or False: Microeconomics focuses on national economic trends like taxation policies.
What is False - that's macroeconomics?
Name one government action designed to stabilize the economy during the Great Recession.
What is TARP (Troubled Assets Relief Program) or American Recovery and Reinvestment Act
What is the difference between a budget deficit and the federal debt?
What is a deficit is when spending exceeds revenue in a single period, whereas, the federal debt is the accumulation of all past deficits?
What is a natural monopoly?
What is a market where one company supplies a product more efficiently than multiple competitors(often government-regulated).
What does CPI measure?
What is the changes in the prices of goods and services consumers buy each month?
What is the key difference between microeconomics and macroeconomics?
What is microeconomics studies individuals/families/businesses, whereas macroeconomics studies the economy as a whole?
What happened when borrowers owed more on their homes than they were worth?
What is they had negative equity or were "underwater" leading to foreclosures, bankruptcies, and eventually the collapsing of banks. This lead to TARP and the American Recovery and Reinvestment Act
When the Fed lowers the Reserve requirement for banks, it makes it _________________.
What is easier for banks to lend money?
Name two fundamental rights of capitalism.
What is private property, freedom of choice, right to compete, and right to profits?
When the price increases slow down, the economy is said to be experiencing ______?
What is disinflation?