Unit 1
What is scarcity?
It is when human want for goods, services, and resources exceed what is available.
What are leading measure?
Forecasts where the economy might be heading
what is the difference between monetary and fiscal policy?
monetary policy addresses interest rates and supply of money (managed by the fed)
fiscal policy addresses taxation, government spending, and borrowing (managed by gov.)
What is globalization?
Global integration of the economies of the world.
What is the national debt?
33 trillion
What’s this an example of: Skipping school to hang out with friends but failing the test next day since you missed the study session in class before.
trade off
What’s the dual mandate of the Federal Reserve?
Maximum employment and price stability
What are the three types of spending and which does the US spend the most?
Mandatory, discretionary, and interest on reserve.
The US spends the most on mandatory expenditures
What is outsourcing?
Hiring workers/companies outside of one’s own business to perform services or create goods that were traditionally performed by companies own employees.
What is arbitrage?
Simultaneous purchase and sale of funds (or goods) in order to profit from a difference in interest rates.
The US, UK, and Germany have a ______ economy
mixed
Characterized by slowing economy, real output decreasing, inflation may stall or shrink
Contractionary part of business cycle
What is a public good?
commodity/service provided without profit to all members of a society by the gov or private organizations.
NC big three industries (historically)?
Tobacco, textiles, and furniture.
Law of demand and law of supply.
Demand: increase in price=decrease in demand.
Supply: increase in price=increase in supply.
Who developed the concept of division of labor?
Adam Smith
What happens if the Federal Reserve sells bonds?
The money supply decreases since cash is removed from the economy.
Who receives social security benefits?
Retired people, disabled workers, survivors.
What changed manufacturing jobs in the 1990s.
Free trade policies and NAFTA wiped out restrictions and duties on clothing, leading to more jobs disappearing.
3 basic economic questions?
What is produced?
How is it produced?
To whom should it benefit?
What is consumer surplus?
The difference between what you’re willing to pay and what you actually pay
What’s the measure of consumer sentiment?
UMCSENT
Difference between copyrights and trademarks?
Copyrights protect the original work of artists (songs, paintings, film)
Trademarks protect logo designs, symbols, phrases.
Does the US export more or import more?
Import
What does ceteris paribus mean?
All things being equal