Economics Fundamentals
What is the fundamental problem of economics that forces people to make choices?
Scarcity
What happens to price when demand increases and supply stays the same?
Price Goes Up
What is the main source of revenue for the U.S. federal government?
Taxes
What is the most competitive type of market structure, with many sellers of identical products?
Perfect competition
What does GDP per Capita mean?
Gross Domestic Product per person
What is the value of the next best alternative when a choice is made?
Opportunity Cost
If the price of hamburgers rises, what happens to the demand for hot dogs (a substitute)
Demand goes up
What type of tax takes a larger percentage from higher incomes than lower incomes?
Progressive Tax
What kind of monopoly is the only gas station within fifty miles of a town?
Geographic Monopoly
Name one of the three basic economic questions every society must answer.
What to produce, how to produce, or for whom to produce
Name the four factors of production.
Land, labor, capital, entrepreneurship
What is the term for when quantity demanded equals quantity supplied?
Market equilibrium
Which government body controls monetary policy in the U.S.?
The Federal Reserve
What is a distinguishing feature of monopolistic competition?
Many sellers offering differentiated products.
What is the main benefit of trade between countries?
Access to goods/services we cannot make as efficiently
What economic system was supported by Big Money Smith?
Capitalism / Free Market Economy
A business raises its price and total revenue falls. What does this say about demand?
Demand is elastic
Name the policy that adjusts government spending and taxes.
Fiscal policy
Give an real life example of an Oligopoly market?
Airlines, Cell service providers, gaming systems etc.
What is the term for a prolonged downturn in economic activity lasting at least a year?
Depression
On a production possibilities curve, what does a point inside the curve represent?
Under-utilization of resources (inefficient use)
What two groups can shift both supply and demand curves?
Buyers and Sellers
What tax is applied to certain goods like Fuel, alcohol, and tobacco?
Excise Tax
What illegal practice occurs when firms secretly agree to set prices or output levels?
Collusion
Miss a blocking assignment