Basic Econ Principles
Factory uses machines, workers and raw materials to make cars. What are the factors of production here
Land, Labor, Capital
Memes make Tide pods look like candy. What happened to demand
Demand-pull
Three doctors want to run their practices together. What biz plan would you recommend
Limited Liability Partnership is best.
bottom of a recession, where output stops falling and stabilizes before growth.
trough cycle
A tax on imported cars is what kind of barrier
tariff
City decides to build a park or parking garage. What's going on here
Opportunity cost is being determined
A drought destroys wheat crops. What happens to supply and equilibrium price?
Supply decreases and price increases
human capital
FED raises interest rates to offset rising inflation. What policy is this?
Contractionary
Two countries remove tariffs between them. That agreement is this?
Free Trade
Supply and demand rules the markets with government intervention and necessary regulations
mixed economy
Gas prices rise sharply, but people still buy the same amount. What is this called
inelastic demand
Medium of exchange
Government cuts taxes to stimulate spending
What does C stand for in the PACED decision making model
Criteria
What economic goals are pursued by 4 % unemployment, equilibrium pricing, and rising GDP
Full employment, Price Stability, Economic Growth
Rolex raises prices and people stop buying them. What type of elasticity is this
Elastic
Which money supply includes a ROTH IRA
M2
Unemployment rises to 12%. What should the government due?
increase government spendingf
A U.S. bans trade with a country for political reasons. What's that called?
Embargo
One positive and one negative of replacing workers with automation
Positive: Increase productivity/lower costs
Negative: Job loss unemployment
Which way does the supply curve shift when tech makes solar panels cheaper
shift to the right
Diversification
What is CPI and what is it?
Cost Price Index. Prices paid by urban consumers for a representative "basket" of goods and services
Name one pro and one con of free global trade
Job loss/no competition with cheaper products
Lower prices/access to cheaper goods