Exam 1 Stuff
Exam 2 Stuff
Exam 3 Stuff
Fiscal Policy
History of Economic Thought
100
What is the name for a statement about how the world should be?
Normative Statement
100
What is the name (structure) of a market with infinite firms?
Perfectly Competitive
100
Name the components of GDP
Consumption, Investment, Government Purchases, Exports, Imports
100
What is the primary body in the United States that decides fiscal policy?
U.S. Congress
100
Who is the father of economics?
Adam Smith
200
When Demand for a good increases and Supply remains constant, what happens to price and quantity?
Price Increases, Demand Increases
200
What area on a supply and demand graph corresponds to consumer surplus?
Below the demand curve and above the equilibrium price
200
What type(s) of unemployment make up the natural rate?
Frictional + Structural
200
Name the two fiscal policy changes that will increase aggregate demand
Increase Government Purchases, Decrease Taxes
200
What was Alfred Marshall's most important book, and why is it important?
Principles of Economics, first econ textbook
300
Name three factors that can shift the demand curve for a good.
(3 of): Price of other goods, Income, Number of Buyers, Tastes/Preferences, Expectations of Future Prices
300
What is always caused by a binding price floor?
Surplus
300
What is important/novel about a monopsony labor market?
Marginal cost curve is steeper than the supply curve, because cost of a worker is greater than just wage.
300
Name the tax that was outlawed by the 24th amendment
Poll tax
300
What were Marx's two important principles that combined to form his idea that communism was inevitable?
Labor Theory of Value and Exploitation of Labor
400
Suppose the number of sellers of donuts increases. What happens to equilibrium price and quantity in the market for donuts?
Price decreases, Quantity increases
400
Name the 3 important pieces of U.S. antitrust legislation.
Clayton Act, Sherman Act, Federal Trade Commission Act
400
Which types of money are exogenous and which are endogenous?
Exo: Commodity (Intrinsic) and Fiat; Endo: Fiduciary
400
When should you use deregulatory policy?
When suffering from a negative supply shock
400
Name three institutionalist economists
3 of: Thorstein Veblen, John R. Commons, Wesly Clair Mitchell, Joan Robinson, John Kenneth Galbraith, Ronald Coase, Simon Kuznets
500
Anna can make 15 shirts and 5 hats each day. Bob can make 8 shirts and 2 hats each day. Who should make shirts?
Bob
500
Name 3 public tools used to combat externalities.
Outright Ban, Pigovian Taxes, Tradeable Quotas
500
If the Federal Reserve wants to pursue expansionary policy, what exactly can it do? (Which direction for each tool)
Decrease reserve requirement, Decrease discount rate, Buy bonds
500
Name three types of ad-valorem taxes
3 of: Sales Tax, VAT, Property Tax, Tariff
500
Name the main principles of Mercantilism
1. Trade generates Wealth 2. Economy stimulated by positive trade balances 3. Government should promote this by protectionist policies (tariffs)
M
e
n
u