Economic Performance
Regulation/ Deregulation
Economic Instability
Policies (Fiscal/Monetary)
Random Hodge Podge
100
dollar amount of all final goods and services produced within a country's borders in a 12-month period
What is GDP
100
Give an example of predatory pricing
Walmart or Amazon dropping the price of books below cost to kill their competition, Borders.
100
The most serious economic downturn in U.S. History
What is the Great Depression
100
Interest rates go up - how does business and consumer spending react? (Think of yesterday Simulation)
What is business and consumer spending goes down.
100
Type of employment that changes when there is a fundamental change in the operation of the economy which changes the demands for workers and skills
What is structural unemployment
200
Limitations of GDP
What is "it does not measure health and happiness or quality of life
200
What is the FDIC? Why was it created?
Guarantees your money in a bank up to 100K, created after runs on banks in the Great Depression!
200
What is Fiat currency? What's a problem/issue with it
What is it represents wealth, but has no value. Like dollar bills are just...paper.
200
Explain the debate which Keynes and Hayek rapped about.
Keynes- It's spending and (govt)controlling markets, stupid! Hayek- It's saving, and letting markets go free, stupid!
200
The Chairman of the FED?
Who is Ben Bernanke?
300
Measurement that shows how prices change over time
What is the consumer price index
300
What is a Cartel, Give an example of a cartel.
A group of oligarchs who get together to set supply/ price. Like OIL! or DRUGS!?
300
GDP declines for six consecutive months
What is a recession
300
What are two tools of fiscal policy?
1. Government spending and 2. tax policies
300
A tax in which people pay according to their means- that is, the % goes up the more one makes.
What is progressive tax.
400
GDP adjusted for inflation
What is real GDP
400
What is the point of financial rating agency? What was their issue before the 2008 recession.
Give AAA or BBB or BB (junk) ratings to investments. Rating agencies were rating companies higher for money, ignoring dangerous risk.
400
Explain how a run on banks works. What federal program is in place to prevent these?
Panicked customers demand their cash and the bank fails. FDIC protects up to 100K, (in theory)
400
Loose or expansionary fiscal policy is used for ____________ and can have the downside of raising ______________
Getting out of a recession, speed up demand. Raises inflation/ debt.
400
What is an Oligopoly? Example?
When you have a limited number of businesses selling a particular good/ service and it's hard to get into the market. Cable, Telephone Service, Taxi Cabs?
500
Name AND GIVE AN EXAMPLE of the FOUR different kinds of Unemployement
Structural, Cyclical, Frictional, Seasonal...examples?
500
What is the point of Anti-Trust laws?
Prevent dangerous monopolies from forming and denying customers choices. Like Microsoft getting sued.
500
Please describe specifically 1.THREE economic challenges the US faces and 2. THREE safety net programs/ anti-poverty programs.
1. a,income inequality/ poverty b. Budget Crisis coming c. Debt/ inflation 2. Tons- WIC, Medicare/ Medicaid, Social Security, FARMS, Veteran's benefits, Foodstamps, etc.
500
What kind of monetary policy would you recommend if GDP is rising but inflation is rising higher?
Tight monetary policy.
500
What is the formula for calculating GDP?
C+I+G+(x-m) Or Consumption, investment, government spending+ net trade
M
e
n
u