Unit 1
The basic economic problem
Scarcity
Who controls the Free Market?
The Invisible Hand
Typically one of the riskiest forms of investments:
An increase in on the graph shifts the supply or demand curve which direction?
Right
What are the 3 tax structures?
Progressive Regressive and Proportional
When a countries wants and needs exceed the countries resources.
Shortages
What Economic System the U.S uses.
If I have $5,000 in my savings account that is considered:
M2, it is not liquid
If price decreases and total revenue increases, the good is:
Elastic
What are the 3 goals of Macroeconomics
Inflation- 2% Annually
Unemployment 4-5% Annually
GDP 2-3% Annually
The graph that shows the possible combinations of two or more goods and services.
Production Possibilities Curve
Command Economy
How will a good credit score impact your loan?
Lower interest rate due to less risk
Draw
If inflation is high, what can the government do in fiscal policy to bring that number down?
Contractionary. Decrease Gov Spending and Increase taxes.
100 tanks
Name a Positive and Negative Externality
Answer Varies
Why should I diversify my portfolio?
Minimizes Risk
Draw
A country that produce something at a lower opportunity cost than another country has this:
Comparative Advantage
How does the PPC shift outward?
New material or technology
A local fishing hole sees 90% of its fish depleted due to overfishing, what economic concept does that represent?
Tragedy of the Commons
Mr. Holst has $15,000 in the bank earning 3% interest. When can he expect his money to double?
24 years
A Price Increase:
Draw it
In order to boost the money supply, what is something that the FED can do?
Cut interest rates to make borrowing easier or decrease the reserve requirement to allow banks to loan out more money.