A
What country has the second largest economy in the world?
China
Which organization controls the printing of money in the U.S.?
U.S. Treasury
How many federal reserve banks are there in the U.S.?
12
The current chair of the Federal Reserve is who?
Jerome Powell
This French term describes a perfect market economy with minimal government interference.
Laissez-faire
Consider a normal supply and demand curve. If demand for good X increases, what happens to the price of good X?
Increases
What is the term for a good that is less desired as income increases?
The condition of persistent high inflation and high unemployment is known as what?
Stagflation
Where does the supply of loanable funds come from?
National saving, saving, total saving
Adam Smith wrote a famous book entitled what?
The Wealth of Nations
What do you call the effect that causes a consumer to consume more of other goods as the price of one good increases?
Substitution effect
In the past 2 decades, has the US mostly run a budget surplus, deficit, or broke-even?
Deficit
What do you call the effect that causes individual spending to increase as real income increases?
Income effect
This event came to be known as “Black Tuesday.” It happened in 1929, and is often cited as the beginning of the Great Depression.
Stock Market Crash/Failure/Drop
Income tax in the U.S. is a flat, progressive, or regressive tax?
Progressive
Suppose there are two countries, Country A and Country B in the world. If Country A's net export increases, what happens to Country B's net export?
Decreases
If the price of milk goes down, what happens to the demand for Oreos?
Increases
What is money without inherent value made legal tender by government decree called?
Fiat money
As the number of firms in a market increases, does it become harder or easier to collude?
Harder
If the fixed cost of producing a good is high, is it harder or easier to maintain a monopoly?
Easier
Name all the components used in calculating GDP.
Consumption, Investment, Government Expenditures, Net Exports
Name the four components of a business cycle.
Peak, Trough, Expansion, Recession
A rival good fulfills what two requirements?
Rival and excludable
Suppose that there are two firms in a market and that they produce the exact same normal good. If firm A’s price is lower than firm B’s, what is the profit of firm B?
0
Adam has decided to enroll at a community college where annual tuition is $4500 instead of taking a job that pays $13500 a year. What is the annual economic cost of attending the college?
$18000