MACRO
WHAT IS MACROECONOMICS
STUDY OF ECONOMY AS A WHOLE.
LARGE SCALE OF GENERAL ECONOMIC FACTORS
WHAT IS MICROECONOMICS
CONCERN FOR SINGLE FACTORS AND EFFECTS OF INDIVIDUAL DECISIONS
WHAT IS ECONOMICS
THE STUDY OF HOW PEOPLE USE SCARCE RESOURCES.
WHAT IS THE FEDERAL RESERVES GOAL FOR PERCENT INFLATION
2%
if you spend $20 in cash how much did you spend
why economically
nothing
WHAT IS GDP
GIVE INITIALISM AND DESCRIPTION.
GROSS DOMESTIC PRODUCT
DOLLAR VALUE OF ALL FINAL SERVICES AND GOODS PRODUCED.
WHAT IS A PRICE CEILING
LEGALLY DECIDED MAX PRICE THAT A SELLER CAN CHARGE.
what is it called when policy allowing business to operate with little or no government interference
laissez-faire
WHAT IS ONE OF THE FEDERAL RESERVES RESPONSIBILITIES
monetary policy, regulate financial institutions, services to depository institutions, federal government, and the public.
( HINT. EASIEST ONE IS ONE THAT ADRITA WORKED ON!!! )
if you spend 100$ on a purse that day how much did it cost you that day assuming that purse last you 1 years
the bag cost 27 cents.
SKILL AND KNOWLEDGE OF WORKERS IS
HUMAN CAPITAL
NAME AT LEASTE 2 REQUIREMENTS FOR A PERFECTLY COMPETITIVE MARKET.
A market that meets the conditions of
(1) many buyers and sellers,
(2) all firms selling identical products,
(3) no barriers to new firms entering the market.
what is a cost that has occurred in the past and cannot be recovered?
SUNK COST!!!!
buy bonds, lower discounts, lower reserve regulations are what type of tools the federal reserves use.
expansionary tools
if you return something that cost 90$ and then bought a coffee that day how much did you spend
you only made money
WHAT IS AN EXTERNALITY?
WHAT DOES IT EFFECT
COST AND/OR BENEFITS OF MARKET ACTIVITY CREATED BY A THIRD PARTY THAT EFFECTS THE WELL BEING OF THE COMMUNITY.
EXPLAIN THE DIFFERENCE BETWEEN COMPARATIVE AND ABSOLUTE ADVANTAGE.
ABSOLUTE-the ability of an individual, a firm, or country to produce more of a good or service than competitiors, using the same amount of resources
COMPARATIVE-the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors
a law which states that when supplies of goods and services become plentiful, prices tend to drop. When supplies become scarcer, prices tend to rise is called
law of supply and demand
how many federal reserves regions are there?
12
if you lost a 20$ bill three months ago and then found the 20$ bill did your income remain the same.
no you gained 20$
WHAT IS THE EQUATION FOR GDP AND GIVE WHAT EACH LETTER STANDS FOR.
GDP = Consumption + Investment + Government Spending + Net Exports or more succinctly as
GDP = C + I + G + NX.
OR GDP = C + G + I + (X - M)
DEPENDS ON THE TEXTBOOK
WHAT IS THE EQUATION FOR PROFIT MADE BY THE FIRM.
Profit Earned = Total Revenue – Total Costs
Profits Earned = Marginal Revenue – Marginal Costs.
Who is the grandfather of economics and supports laissez faire economy?
ADAM SMITH
who is responsible for making monetary policy decisions
The Federal Open Market Committee (FOMC)
any works