Basic econ terms
Econ graphs
Econ in real life
Stocks
Random Finance
100
Name at least 3/5 factors of production.
Labor, human capital/knowledge, land/natural resources, capital, entrepreneurship
100
Identify the market equilibrium price and quantity.
Equilibrium price: P0
Equilibrium quantity: Q0
100
Name two (or more) types of taxes.
Income, sales, excise, property, carbon
100
What is Day Trading?
Making numerous trades within a single day, capitalizing on small, quick price changes
100
What is speculation?
Investors buy stocks hoping their price will go up quickly, often based on hype, rumors, or trends rather than the company’s actual performance.
200
What is opportunity cost?
The loss of potential gain from alternative choices when one choice is chosen; the cost of the next best alternative
200
Identify the producer, consumer, and total surplus.
CS: A
PS: B
TS: A+B
200
What are the liberal and conservative points of view on taxes?
Liberal POV: want more taxes, especially corporate taxes / tax on the rich --> that way we can fund government projects for the public's benefit
Conservative POV: want less taxes, less government intervention
200
Explain the parts of a candlestick
Opening Price, Lowest Price, Highest Price, Ending Price
200
What is the formula for simple interest
I(nterest)=P(principal) x R(ate) x T(ime)
300
What is scarcity? Relate it to the study of economics.
Scarcity: limited resources in society --> we cannot produce all of the goods and services that people wish to have
Economics: the study of how society manages its scarce resources
300
What is this curve called?
The production possibilities frontier / production possibilities curve (PPF / PPC)
300
Name one of the economic policies Trump says he will implement as president.
- tariffs (especially on goods from China)
- lower corporate taxes to 15%
- eliminate income taxes
- deport immigrants (leads to labor shortages)
300
What does it mean to have a low P/E ratio?
The stock price is low compared to its earnings per share.
300
Explain the GameStop Incident
When a bunch of small investors on Reddit started buying shares of GameStop from it to go bankrupt. GameStop's stock price rose from $20 to $500 in just a couple of weeks and the hedge funds who bet on GameStop's downfall would lose a lot of money.
400
What is elasticity?
How responsive quantity (demanded / supplied) is to changes in price
400
The following graph shows a tax on suppliers. Identify pre-tax PRODUCER surplus, post-tax CONSUMER surplus, and dead weight loss.
Pre-tax producer surplus: C+D+F
Post-tax consumer surplus: A
Dead weight loss: E+F
400
What is the difference between a progressive and regressive tax?
A progressive tax taxes the wealthy more, while a regressive tax means the poor pay a larger percent of their income in tax. (They're opposites)
400
What type of stock indicator is this?
Morning Star
400
What is 1 thing you should be aware of when setting up your investment plan
Risk Tolerance, Time Horizon, Financial Goals, Liquidity, Investment Knowledge
500
What is the Law of Diminishing Marginal Utility?
As consumption increases, the marginal utility derived from each additional unit declines (reason why the demand curve is downwards sloping)
500
The following is a graph of an international market. Identify the world price, price after tariff, tax revenue rectangle, and quantity imported after a tariff is applied.
World price: P1
Price after tariff: P2
Tax revenue rectangle: middle rectangle made from Q2 and Q3 lines
Quantity imported after tariff: Q3-Q2
500
Two firms, Firm A and Firm B, both sell burgers. They are in a duopoly, and are considering whether they should raise or lower their burger prices. Based on the payoff matrix below, what is Firm A's dominant strategy?
Lower price
500
What stock indicator is this?
Morning Star
500
What is the formula for Compound Interest?
