Basic Economics
The next best thing given up when making a decision.
What is opportunity cost?
This is the economic principle that says that as price rises, the quantity supplied rises.
What is the Law of Supply?
This Business Cycle Theory believes that "Animal Spirits" are the cause of the business cycle.
What is Keynesianism?
The function of money in which money serves a substitute for a good you do not have in a transaction.
What is the medium of exchange?
This is a sales tax on imported goods.
What is a tariff?
An economic statement that is statement of opinion (value statement).
What is a normative economic statement?
A cyberattack has made it so that Ford Motor Company can produce less vehicles for the exact same cost as before. This is what will happen to price.
What is rise?
This Business Cycle Theory believes that the source of the business cycle is the volatility in the supply of money.
What is Monetarism?
The Federal Reserve has this many regional banks.
What is twelve?
This is a term that represents that a country can produce a good at a greater quantity than another country.
What is absolute advantage?
The problem that results from a government instituted price floor.
What is a surplus?
The government of the Instructor's Democratic Republic of Sharpistan (IDRS) decides to provide a subsidy for the construction of automobiles. This is what will happen to price.
What is falls?
This Business Cycle Theory believes that the solution to an economic recession is both an increase in the money supply and fiscal policy (tax cuts/government spending).
What is Neo-Keynesianism?
This is who owns the Federal Reserve System.
What is the commercial banks and credit unions?
The Instructor's Democratic People's Republic of Pensacolastan decides to implement tariffs and other protective measures so as to be less reliant on its neighbors (Anarchic Student Federation or United States of Administration) for military supplies. This is the protectionism argument being used.
What is the military self-sufficiency argument?
What is adverse selection?
This is the principle which explains why the demand curve is downward sloping in a market.
What is diminishing marginal utility?
This Austrian Business Cycle theory believes that government distortions in the interest rates causes this to happen.
What is Malinvestment and Overconsumption?
If the reserve ratio is 10%, an we print and inject $1 billion in new currency, this will be the increase in the money supply.
What is $100 billion?
The United States can produce 300 tons of apples (if all land, labor, and capital were allocated to apple production) and 100 tons of syrup (if all land, labor, and capital were allocated to syrup). Canada can produce 200 tons of apples and 200 tons of syrup. This country has a comparative advantage in the production of syrup.
What is Canada?
Quadratic Voting and Ranked Choice Voting are solutions to this economic problem.
What is Inefficient Voting?
This is the economic concept for why the supply curve is upward sloping in a market.
What is increasing opportunity cost?
The weakness of Monetary stimulus is that you give banks more money but it doesn't mean they will lend it out. This problem is called what?
What is asymmetry?
This is the interest rate that the Federal Reserve charges on overnight loans to commercial banks and credit unions.
What is the discount rate?
The Instructor's Democratic Republic of Sharpistan provides foreign aid to the Anarchic Student's Federation to support greater college enrollment. This would fall within this subaccount of the Balance of Payments.
What is the Net Transfers?