Intro to Econ
________ occurs when needs/wants are seemingly unlimited. Economics revolves around this
Scarcity
______ is the overall desire of people to have a good/service
Demand
What type of market has only ONE seller and is very hard to compete with?
Monopoly
Name on of the central issues discussed in Unit 5: Evaluating the Economy
Inflation, Unemployment, Poverty, Population
What type of policy, expansionary or contractionary, is needed when facing high inflation?
Contractionary
What type of economy is the United States?
A. Market
B. Mixed-Market
C. Command
D. Traditional
Mixed-Market
List two reasons for a change (shift) in demand
SPICE:
Substitute
Preference (Popularity)
Income
Complement
Expectations
This market has a FEW sellers and sometimes they engage in collusion/price fixing (working together/setting prices to benefit)
Oligopoly
What country in "The 2025 Problem" experienced population decline and an aging population
Japan
_______ policy refers to how the government taxes and spends money
Fiscal
A point along the production possibilities curve indicates...
A. Efficient
B. Inefficient
C. Impossible
Efficient
What happens to the equilibrium price of a product when the cost of an input/resource to make it is more expensive?
It is higher (supply shifts to the left)
What type of market has several sellers and they sell differentiated products?
Monopolistic competition
What is fiat money?
How much money we overspend each year added together (overall) is called....
The National Debt
TINSTAAFL stands for...
There Is No Such Thing As A Free Lunch...everything has a cost
How many potential reasons did we use for a change in Supply? Hint: more reasons than demand
6 (WRENTT)
This type of business model features two members co-owning a business where they share responsibility, profits, and losses.
Partnership
What is frictional unemployment?
A _________ income tax is when individuals/couples are taxed a lower/higher percentage depending on how much they make
Progressive
Name at least 3 of the 4 factors of production
Land, Labor, Capital, Entrepreneurship
What happens to the equilibrium price AND quantity of almond butter when demand for almond butter's substitute, peanut butter, goes up?
This business model is where an person can buy and own a pre-existing business, without the creation of their own idea/business. (Ex: Abigail owns a Dunkin Donuts or Chik Fil A)
Franchise
List one characteristic of money
Easily divisible, Portable, Durable, Available but limited
Lower the reserve requirement (easier to take loans, incentive to work), lower the discount rate on loans to banks (maybe), buy bonds on the open market (most likely, more money in circulation)