Elastic Fantastic
Food, water, and shelter are examples of these, while concert tickets and video games are examples of these.
Needs; wants
Many firms selling identical commodity goods (like wheat or corn) with no control over price.
Perfect competition
A market with only one seller and no close substitutes.
Monopoly
A business owned and run by just one person.
Sole proprietorship
The total market value of all final goods and services produced within a country in one year.
Gross Domestic Product (GDP)
The highest point of the business cycle, right before a contraction.
Peak
A tax on imported goods.
Tariff
STAR WARS: This Jedi master trained Annakin Skywalker and was also known as "old Ben"
Obi Wan Kanobi
If the elasticity coefficient is greater than 1, demand is said to be this.
Elastic
A market dominated by a few large firms, like airlines or cell phone carriers.
Oligopoly
The two federal agencies that enforce antitrust laws.
The Federal Trade Commission (FTC) and the Department of Justice (DOJ)
A business form that sells ownership in shares and gives owners limited liability.
Corporation
The formula for GDP.
GDP = C + I + G + NX (Consumption + Investment + Government spending + Net exports)
A worker quits her job and is searching for a better one. This is this type of unemployment.
Frictional unemployment
A country's ability to produce a good at a lower opportunity cost than another country.
Comparative advantage
This ghost/fairy-type pokemon wears a Pikachu costume
Mimikyu
Products like insulin or gasoline have a demand curve with this shape, meaning demand is this.
Steep; inelastic
Many firms sell similar but differentiated products (like fast-food chains) and use non-price competition such as advertising.
Monopolistic competition
Two companies in the same industry at the same stage of production combine, like two airlines merging.
Horizontal merger
Local owners pay fees to use a brand name and business model, like most McDonald's or Subway locations.
Franchise
Social Security checks and unemployment benefits are NOT counted in GDP because they are these.
Transfer payments
A ski instructor is out of work every summer. This is this type of unemployment.
Seasonal unemployment
Government changing taxes and spending is this policy; the Fed changing the money supply and interest rates is this policy.
Fiscal policy; monetary policy
NFL: Which is the only publicly-owned NFL team?
Green Bay Packers
Price rises 10% and quantity demanded falls exactly 10%. The elasticity is this.
Unit elastic (elasticity = 1)
Obstacles such as high startup costs or patents that make it hard for new firms to enter a market.
Barriers to entry
The type of monopoly where one firm can supply the whole market at a lower cost than several firms, like a water utility (thanks to economies of scale).
Natural monopoly
The first time a company sells its stock to the public.
Initial Public Offering (IPO)
Total GDP divided by population, often used to compare quality of life between countries.
GDP per capita
Cashiers replaced by self-checkout machines whose skills no longer match available jobs face this type of unemployment.
Structural unemployment
A tax where higher-income people pay a higher percentage, made possible by this constitutional amendment allowing a federal income tax.
Progressive tax; the 16th Amendment
POLITICAL GEOGRAPHY: This is the only U.S. state that borders exactly one other state.
Maine
Price rises 20% and quantity demanded falls 5%. Calculate the elasticity and classify it.
5% ÷ 20% = 0.25 → inelastic (less than 1)
A formal group of producers that agree to coordinate prices and output, such as OPEC. (This kind of collusion is illegal in the U.S.)
Cartel
A company that owns businesses in many unrelated industries is this, while a company that operates in many countries is this.
Conglomerate; multinational corporation
Explain the difference between a stock and a bond.
A stock is a share of ownership (may pay dividends); a bond is a loan to a company or government that is repaid with interest
Within the circular flow we divide it into to portions which are what.
Factor Market and Product Market
A town has 190 employed people and 10 unemployed people. Find the labor force and the unemployment rate.
Labor force = 200; unemployment rate = 10 ÷ 200 × 100 = 5%
A country imports $500 billion and exports $350 billion. Trade surplus or deficit, and by how much?
Trade deficit of $150 billion
POP CULTURE: Economists said this 2023–2024 Taylor Swift concert tour gave a major boost to the local economies of the cities it visited.
The Eras Tour