Microeconomics
Why does the 15th hot dog taste worse than the first?
Diminishing Marginal Returns
What happens to price when supply of a good increases?
Price decreases
How will the money supply change if the Fed buys bonds?
Money supply increases
This landmark work published in 1776 scathingly critiqued mercantilist policies, advocating free markets.
Wealth of Nations
This Wall Street scammer, arrested in 2008, used fake stock certificates to rip off $65 billion from investors.
Bonus: What is this type of scam called?
Bernie Madoff
+100 if you said "Ponzi Scheme"
If Spam and Scam are complements, what happens when the price of Scam increases?
Demand for Spam decreases
Why can trades be mutually beneficial?
Some countries can produce goods at a lower opportunity cost
A firm continues operating even though it incurs losses of $300. Why?
The price charged is greater than average variable cost, so by shutting down the firm would experience even more losses
An economic policy adopted by colonial powers based on the theory that exports should be maximized and trade is a zero-sum game.
Mercantilism
What is the prime factorization of 67,676?
2*2*16,919
A producer produces until?
Marginal cost equals marginal revenue
If an economy experiences unexpected inflation, do borrowers or lenders benefit?
Borrowers
If a bank has $20,000 in excess reserves and the Fed lowers the Required Reserve Ratio to 10 percent, what is the maximum increase in money supply?
$200,000
This 1970s phenomenon cast doubt on the commonly accepted theory behind the Phillips Curve.
Stagflation
Before his death, this vigilante rampaged through Granby, Colorado in June 2004 with an armored bulldozer.
Marvin Heemeyer
Why are some industries, like utilities, considered natural monopolies?
High overhead costs, decreasing ATC creates barriers to entry
In the long run, what will contribute most towards economic growth?
Better human capital, i.e. technology, education, skills & job training, etc.
A spam salesman sells 40 cans of spam for $100 each. His costs of operating amount to $4,000. How much profit does the salesman earn?
Bonus: What is this type of profit called?
Profit equals zero dollars
+100 if you said "Normal Profit"
This German political economist argued that firms steal profits from workers, and to prevent exploitation collective ownership was necessary.
Bonus: What is this theory called?
Karl Marx
+300 if you said "Labor Theory of Value" or "Theory of Exploitation"
What is the capital of the Solomon Islands?
Honiara
Why are monopolies inefficient?
They produce less and charge more than competitive markets
A government imposes a progressive income tax during an inflationary period to accomplish what goal?
Decrease aggregate demand to keep inflation in check
The Federal Reserve would lower the Discount Window Rate (DWR) to achieve what goal and why?
More lending from the central bank, increased money supply, reduced real IR, etc. (Expansionary)
What is the central question of economics?
How do we allocate scarce resources which have alternative uses?
What is the integral of the curve of a helix, C, given by the parametric function r(t)=[10sin(t/2), 10cos(t/2), 12t] from time t=2 to t=4?
Bonus: What are silver spoons made from?
325/144
+100 if you said "Silver"