unit 1
unit 2
unit 3
unit 4
random
100
what is the driving force of economics (built on limited resources with unlimited wants)
scarcity
100
GDP vs. GNP vs. GDP per capita
gross domestic product-within country
100
Difference between monetary policy and fiscal policy?
Monetary- deals with interest rates, supply of $, managed by Fed
Fiscal- deals with taxes, gov spending, gov legislation, uses both to create complex economy
100
which is absolute and comparative advantage?
ability of a country to produce a good at a lower
-opportunity cost
-cost
100
small # of companies (sell differentiated/identical products)
oligopoly
200
who is this?
-promotes free market
-invisible hand
-division of labor/specialization
-laissez faire
Who is this?
-promotes command economy
-poor/working class should rise up
-gov. would control Factors of Prod.
-Father of communism(controlled by state)
Adam Smith, Karl Marx
200
What factors are part of the dual mandate from the FOMC and does monetary of fiscal policy try to achieve this?
1. achieving max employment
2. maintaining stable prices
monetary policy
200
what are some tools the government uses?
taxes
spending
borrowing
200
1990's NAFTA
a wave of free trade policies wiped out restrictions and duties on clothing
200
what is HDI and what does it do
human development index- composite measure of nations social/economic development
300
Capitalism or Communism?
-competition
-private ownership
-self interest
-social hierarchy
-free enterprise
Capitalism or Communism?
-efficiency
-public ownership
-greater good
-one-party system
-equality
Capitalism, Communism
300
Federal reserve Rate vs. Interest on Reserves Rate
loans to other banks vs interest that the Fed pays banks for holding in the reserve accounts.
300
list the three areas of spending from biggest to smallest.
Mandatory, Discretionary, Interest on the Debt
300
benefits of globalization
-incr. communication
-incr trade
-higher paying jobs acsess to more goods /services
-increased standard of living
300
list and define types of property
private- exclusive right, strong incentive for conservation
state- rights held collectively w/ control excersized by an authority/agency
common- exclusive rights assigned to all members
open access- rights unassigned , lack incentive to conserve
400
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where is the surplus and shortage on graph
surplus on top between s and d, shortage below between s and d
(surplus=more supply than demand)
(shortage=more demand than supply)
400
expansionary policy cycle or contractionary policy cycle?
Fed Lowers rate
loans cheaper
more $ to spend
economy grows faster
400
what is the marginal tax rate
amount of additional tax paid for each additional dollar earned as income.
400
costs of globalization
-income inequality
-u.s. job loss
-more power to big companies
400
Is the U.S. congress+treasury part of the fiscal or monetary policy?
Fiscal
500
a product that can be used in place of another
vs.
goods that go well w/ other goods
Substitute
&
Complementary
500
expansionary policy cycle or contractionary policy cycle?
fed raises rates
more expensive loans
less $ to spend
economy slows
500
intelectual property rights listed with definitions
patent- design/utility protects pattern, process, layout, manufacture of a product
trade secret- valuable info no publicly known
copyright- protects original work of authorship
trademark- legal protection for logo, design, phrase, etc.
500
tarrifs vs. quotas? define.
tariffs: tax imposed on imports
quotas: limits on the amount of goods imports
500
what does FICA and COLA stand for?
federal insurance contribution act
&
cost of living adjustment