The economic system where the resources are privately owned and the invisible hand "governs" the system is know as:
What is the free market system
100
This type of good can be defined as any good that when incomes rise people purchase a larger quantity.
What is a normal good
100
In economics, when an individual is able to reap the benefits of a good or service without payment, they are called this.
What is a free rider
100
When the government analyzes income inequality, they divide the country into groups called:
What are quintiles
100
Gross Domestic Product is calculated by adding what four areas of spending?
What is Consumer Spending (C), Business investments (Ig) Government Spending (G) and net exports (Xn)
200
This economic thinker generated the Invisible Hand theory and stated that self interest and competition would regulate the market.
Who is Adam Smith
200
What is the ONLY change that cause movement along both the demand and supply curves?
What is price
200
When a firm generates a lot of pollution but doesn't account for it in their costs, this is considered a:
What is negative externality
200
What is the name of the curve used to measure economic inequality?
What is the Lorenz Curve
200
This type of GDP is adjusted for inflation and provides more accurate data regarding a country's growth
What is Real GDP
300
What are the four factors of production?
What is
Land
Labor
Capital
Entrepreneurship
300
An increase in demand or and increase in supply would cause the curve to shift in which direction?
What is to the right
300
The government implements this type of tax system in hopes to reduce income inequality
What is the progressive tax system
300
This is the rate at which the general price level for goods and services rises
What is inflation
400
This curve demonstrates all of the possible combinations of goods that can be produced given a fixed amount of resources.
What is the PPC
400
List the FIVE shifters of demand
What is
1. Tastes and preferences
2. Number of buyers
3. Price of related goods (compliments/substitutes)
4. Future expectations
5. Change in Income
400
This type of tax system takes a larger portion of income as more income is being earned
What is a progressive tax system
400
The two types of Economic mobility are
What are absolute and relative
400
What are the four limitations of GDP?
What are
1.Non-market Activities
2.Underground Economy
3.Quality of Life
4.Negative Externalities
500
According to the circular flow model, in the product market households are the ______________ and firms as the _________.
What is buyers and sellers
500
List the SIX shifters of supply
What is
1. Price and availability of resources
2. Number of sellers
3. Price of related products
4. Gov’t actions (taxes, subsidies, regulations)
5. Future expectations
6. Change in technology
500
Goods that are available to everyone are often polluted since no one has the incentive to keep them clean. This is known as the ____________
What is Common Pool Problem (or tragedy of the commons)
500
In this type of economic system, outcomes are based on talent, effort, hard work.
What is a Meritocracy
500
How do we calculate unemployment rate?
What is divide the number of people unemployed by the number of people in the labor force