Economic Basics
What is the study of how people choose to use limited resources?
What is economics?
This Scottish economist wrote The Wealth of Nations in 1776.
Who is Adam Smith?
What happens to demand when prices go down, all else equal?
What is demand increases?
What is the name of the central bank of the United States?
What is the Federal Reserve?
What do we call a market structure with only one seller?
What is a monopoly?
Which two main branches make up economics?
What is micro and macro?
He’s known for the idea that government should increase spending during a recession.
Who is John Maynard Keynes?
What is it called when the quantity demanded equals the quantity supplied?
What is equilibrium?
What do we call the total value of all goods and services produced in a country?
What is GDP (Gross Domestic Product)?
This term means "the value of the next best alternative foregone."
What is opportunity cost? (also in Economic Basics — good for reinforcement!)
What do we call the cost of the next best alternative you give up when making a choice?
This economist promoted free markets and wrote Capitalism and Freedom.
Who is Milton Friedman?
What do you call a product where demand rises as income rises?
What is a normal good?
Which government policy uses taxes and spending to influence the economy?
What is fiscal policy?
What do you call goods that can be used in place of each other?
What are substitute goods?
What type of economy relies on customs and traditions to make economic decisions?
What is traditional economy
This 19th-century economist predicted class struggle and wrote Das Kapital.
Who is Karl Marx?
What kind of shift occurs in the supply curve when technology improves?
What is a rightward shift (increase in supply)?
What is inflation?
What is the general rise in prices over time?
What’s the economic term for “extra” benefit from consuming one more unit?
What is marginal benefit?
What economic concept explains why the first slice of pizza is more satisfying than the fifth?
What is diminishing marginal utility?
This Nobel Prize winner developed the concept of asymmetric information in markets.
Who is George Akerlof?
If the price of burgers increases and the demand for fries falls, what kind of goods are these?
What are complementary goods?
What term describes a long period of economic decline, like the 1930s?
What is the Great Depression?
A situation where one party in a transaction has more info than the other.
What is information asymmetry?