Definitions
What is the term for a, "study of choices when there is scarcity?"
Economics
. A country has 1,000,000 people. 950,000 are working and 50,000 are looking for work. What is that countries unemployment rate?
5%
Write out the equation for calculating percentage
New Value-Original Value Divided by original value
Which Factor of Production is, "The effort used to coordinate the factors of production—natural resources, labor, physical capital, and human capital—to produce and sell products."
Entrepreneurship
Who founded the United States banking/economic system?
Alexander Hamilton
What term is , "The resources we use to produce goods and services are limited."
Scarcity
Last month you made $200 on sports gambling, this month you made $120. What is your percentage decrease?
40%
If you have $150 to spend on either books or movies, with books being and movies being $15, what type of slope on your graph would you gave to show the relationship between books purchased and movies purchased?
Negative Slope
Which type of analysis would be used to evaluate whether a new tax on sugary drinks has led to a decrease in consumption?
Positive
Which country banned private ownership of property from the 1960's-2011?
Cuba
a change of one “unit” in a variable
Marginal Change
If a government has a negative import to export ratio and high unemployment, what can they do to improve both problems?
Invest in jobs that can create exports, hire local population to work those jobs.
If you own a business and your day operating costs are $100 and daily labor costs $20 an hour, how much would it cost you to make 100 cell phones if your business can make 20 phones an hour?
$200
What does the phrase "Ceteris Paribus" mean?
All things remaining the same/All things being equal
What 3 issues does macroeconomics focus on?
Unemployment, inflation, and economic growth
The study of the choices made by households, firms, and governments, and how these choices affect the markets for goods and services.
Microeconomics
Why would there be a non-linear relationship between traffic and lanes on the highway.
As first lanes are added, traffic decreases at a higher rate. However, as lanes are continually added traffic decreases at a lower rate due to number of cars on the road.
You are a car salesman at a local shop. From January through December, here are your car sale totals: 12, 27, 30, 25, 36, 40, 20, 18, 17, 24, 28, 26. Which month had the highest percentage increase and decrease and what was that percentage>
February-125% increase
July-50% decrease
Name the 3 Key Economic Questions
Who, How, What
What group of people just went on strike today that could negatively impact the economy?
Dock workers
The study of the nation’s economy as a whole; focuses on the issues of inflation, unemployment, and economic growth
Macroeconomics
You are tasked with analyzing a local farmer's decision on how much wheat to plant. To make the analysis manageable, you decide to simplify the situation by assuming that the only factors influencing the farmer’s decision are the price of wheat and the cost of seeds. List three other real-world factors that could influence the farmer’s decision
Weather conditions, availability of labor, government regulations, price of wheat on market, etc.
Opposite/Inverse. As supply goes up demand goes down, demand is up supply is low.
Name the 4 Economic Ways of thinking
1. Use assumptions to simplify
2. Ceteris Paribus/Isolate Variables
3. Think at the Margins
4. Rational People Respond to Incentives
Who is considered the father of modern economics?
Adam Smith