Basics of Econ
This includes things such as workers, machines, buildings, land, etc.
What are factors of production?
This states when the price of an item goes up, demand goes down
What is the law of demand?
In this market structure, one firm sells a unique product
What is a monopoly?
Team A is able to make widgets cheaper than any team, but Team B can make them more efficiently. Which team has the comparative advantage?
Team B
Smoking and college education cause these.
What are externalities?
This common type of economy features government regulation and the free market.
What is a mixed economy?
An example of this economic concept is when you go to the movies and they are sold out of tickets.
What is a shortage?
(Demand > Supply)
This is a coalition of businesses that is formed when there is an oligopoly market structure.
What is a cartel?
These are the 2 tools of fiscal policy.
Taxing and spending
What is interest?
Something that you are giving up by making another decision.
What is an opportunity cost?
This is a real life example of a price floor.
What is minimum wage?
The soft drink and car industries are examples of this market structure.
What is an oligopoly?
Many of our goods are made overseas. This is one of the reasons why.
It is cheaper
It is slow, does not involve money, and allows people to get things they want.
What is barter?
In this type of economy one central planner makes all the decisions on how to answer the 3 economic questions.
What is a command economy?
A disease wiped out 1 billion people across the globe. What would this do to the equilibrium price for baby strollers? What factor shifted the overall demand?
Decrease, number of consumers
The government regulates monopolies for these reasons.
To promote competition and keep prices low for consumers
These are challenges to reducing the national debt.
Increasing costs of healthcare, politics, aging population
This is what the equilibrium represents
What is the price and quantity where supply = demand
A PPC is a visual representation of this.
What is the combination of goods/services that a country can make with its resources
This happens if a price ceiling is set below the equilibrium price for a good or service.
What is a shortage?
Give an example of a US import and US export
Export: ford cars
Import: french cheese
Public goods are both ______________ and ___________________.
Non-rival and non-excludable