Basics
Trade
Banking
Monetary Policy
Schools of Thought
100
This flows from houses to businesses through the factor market.
What is factors of production?
100
A point inside the PPF graph represents this.
What is inefficient use of resources?
100
A bank is only allowed to loan out this amount of money.
What is its excess reserves?
100
Expansionary monetary policy consists of decreasing the discount rate, buying bonds, and decreasing this.
What is the reserve requirement?
100
This school of thought under Adam Smith believes prices are irrelevant or flexible but GDP isn't flexible.
What is Classicists?
200
Society's unlimited wants leads to this problem.
What is scarcity?
200
A country has comparative advantage in the production of a good if it has this relative to another country.
What is a lower opportunity cost?
200
A central bank can do this by purchasing government securities on the open market.
What is create money?
200
This branch of the Federal Reserve is in charge of OMO's.
What is the New York branch?
200
This school of thought didn't believe in self-correction or potential GDP and their focus was on expenditure to create demand.
What is Keynesians?
300
Components of GDP include these.
What is Consumption, Investment, Government Spending, and Net Exports?
300
An improvement in technology or an increase in productivity causes this on a PPF.
What is an outward shift?
300
When an individual cashes in a check, these increase.
What are reserves and checkable deposits?
300
The FED charges this rate to banks for overnight loans.
What is the discount rate?
300
According to the Monetarists, the velocity of money is this.
What is the number of times the average dollar is spent to buy final goods and services?
400
Society must make trade offs because of these.
What is unlimited wants and limited resources?
400
If China can produce 10 computers in 3 hours and the U.S. can produce 8 computers in 3 hours, absolute advantage in the production of computers belongs to this country.
What is China?
400
When a bank makes a loan, it is exchanging "new" money for this.
What is an IOU?
400
As the money supply increases, this decreases.
What is the nominal interest rate?
400
This school of thought was more focused on continual savings for further investment and Long-Run Growth.
What is Austrians?
500
Adam Smith's theory says everyone is motivated by this.
What is self-interest?
500
In two hours, Bob can either catch 7 fish or collect 3 coconuts, and Joe can either catch 8 fish or collect 4 coconuts. Law of comparative advantage says that Bob should specialize in doing this and Joe should specialize in doing this.
What is catching fish and collecting coconuts?
500
This guarantees that a bank's depositors will be paid even if the bank can't come up with the funds, up to a maximum amount per account.
What is deposit insurance?
500
The multiplier involved in Monetary Policy is this formula.
What is 1/.RR?
500
This school of thought's hero was Ronald Reagan.
What is Supply Siders?
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