Fundamentals
This basic economic problem exists because unlimited wants exceed limited resources.
scarcity
A market with only one seller is known as this structure.
What is a monopoly?
The sum of consumer, investment, government, and net export spending equals this measure.
What is GDP?
A tax on imported goods is known as this.
What is a tariff?
Economists use this term for costs that do not require a cash payment, such as time.
What are implicit costs?
The next best alternative you give up when making a choice is known as this.
Opportunity cost
This elasticity condition exists when the percentage change in quantity demanded is greater than the percentage change in price.
What is elastic demand?
Unemployment caused by workers moving between jobs is known as this.
What is frictional unemployment?
A country running a trade deficit has this condition for net exports.
What is negative net exports?
In game theory, this outcome occurs when no player can improve their position by changing strategy alone.
What is Nash Equilibrium?
These two assumptions make PPC curves bowed outward rather than straight.
What are increasing opportunity costs and specialized resources?
The profit-maximizing rule for firms is to produce where this condition holds true.
What is MR = MC (marginal revenue equals marginal cost)?
The Federal Reserve primarily uses this policy tool to influence interest rates.
What is open market operations?
When a currency becomes more valuable relative to others, we say it does this.
What is appreciates?
This economist is known as the "father of economics"
Who is Adam Smith?
This term describes the total satisfaction received from consuming one more unit of a good.
What is marginal utility?
These goods, such as peanut butter and jelly, exhibit negative cross-price elasticity of demand.
What are complementary goods?
This term defines a general increase in prices and fall in the purchasing value of money
What is Inflation?
This international institution handles disputes and sets global trade rules.
What is the World Trade Organization (WTO)?
This economic law states as a person consumes more of a good or service, the additional satisfaction (utility) they get from each new unit decreases.
Double points
What is the law of diminishing marginal utility?
This concept explains why a nation can benefit from trade even if it is more efficient in producing all goods
What is comparative advantage?
This type of market failure occurs when a person’s consumption of a good impacts others who are not part of the transaction.
What is an externality?
Long-run economic growth is driven not by capital accumulation but by improvements in this broad category of productivity.
What is technological progress (or total factor productivity)?
This term is defined by the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.
What is Absolute Advantage?
What major global economic event shaped the way we understand economics?
What is the Great Depression?