Micro Facts
Where quantity supplied is equal to quantity demanded
What is market equilibrium?
The current Fed Chair
Who is Jerome Powell?
Three financial statements
What are balance sheets, income statements, and cash flow statements?
What is the sum of numbers from 1 to 100?
The trick here is that you have 50 pairs which each sum to 101 (e.g. 1+100, 2+99, 3+98, etc.). So, 50 times 101 = 5050.
Author of the Wealth of Nations
Who was Adam Smith?
Goods you would buy more of if your income decreased
What are inferior goods?
Laissez-faire economics
What is the economic philosophy that advocates for minimal government involvement, believing that free markets lead to the best outcomes?
EBITDA meaning
Earnings Before Interest, Taxes, Depreciation, Amortization
Approximately how many quarters would it take to build a stack from the floor of this room all the way to the ceiling? For simplify, let us assume that the room is 10 feet high and that 12 quarters are 1 inch tall.
12 quarters every inch multiplied by 12 inches each foot multiplied by 10 feet space equals 1440 quarters
Marked the end of the Roaring Twenties and the start of the Great Depression
What is Black Tuesday?
An excludable but nonrival good
What is a club good?
The factors of GDP
What are consumer spending, government spending, net exports, and business investments?
What are the different valuation methods?
What is DCF, public comps, and precedent transactions :)
At 3:15 p.m., what is the angle formed by the hour hand and the minute hand of a clock?
With a quarter past the hour approaching, the minute hand is exactly at 3:00, but the hour hand has moved 1/4 of the way between 3:00 and 4:00 on the clock. As a result, 1/4 times 1/12 equals 1/48 of the clock. With a clock of 360 degrees, 360/48 = 7.5 degrees is the angle measured.
First female Secretary of Treasury
Who is Janet Yellen?
A situation in which no player could gain anything by changing their own strategy after taking into consideration the opponent's strategy.
What is Nash Equilibrium?
Expansionary Fiscal Policy
What is increased government spending/reduction of taxes to increase economic growth?
Current Assets - Current Liabilities
What is working capital?
Three lightbulbs are installed in a room with no windows. You're standing outside the room, in front of three switches, each of which controls one of the lightbulbs. So, if you only have one chance to enter the room, how are you supposed to figure out which switch controls which lightbulb?
Two switches (designated as A and B) should be turned on for a few minutes and then turned off. Then, using switch B, turn one of them off and walk into the room. Switch A is in charge of controlling the brightness of the light. Make contact with the other two bulbs (they should be off). Switch B is in charge of controlling the one that is still warm. Switch C is responsible for controlling the third bulb (which is both off and chilly).
Prohibited price discrimination
What is the Clayton Anti-trust Act?
A tax where the rate increases as the taxable amount increases
What is a progressive tax?
The buying and selling of of government securities by the central bank to manage money supply and influence interest rates
What are open market operations?
Link the three financial statements :)
Net income from IS --> Net income on CFS --> CF for the period goes to cash on BS
Net income on ISs goes to Retained Earnings on BS
You have two ropes coated in an oil to help them burn. Each rope will take exactly 1 hour to burn all the way through. However, the ropes do not burn at constant rates—there are spots where they burn a little faster and spots where they burn a little slower, but it always takes 1 hour to finish the job.
With a lighter to ignite the ropes, how can you measure exactly 45 minutes?
Light one of the ropes on fire on both ends and light the second rope on one end at the same time. When the first rope burns out, 30 minutes have elapsed. At that exact moment, you light the unlit end of the second rope.
Because 30 minutes of the second rope have already been used up, 30 more remain. Lighting the other end at the moment the first rope burns up will cause the remaining part of the second rope to burn up in 15 minutes. Once the second rope has been consumed by the flames, exactly 45 minutes have passed.
Took the U.S. Dollar off of the gold standard (second time)
Who was Richard Nixon?