In a typical business cycle, what stage immediately follows a trough?
Expansion
100
Define inflation.
Rise in general level of prices
100
BONUS 100 POINTS!!!
Such Jeopardy. Much Points. Wow.
200
List the factors of production
Land, labor, capital, and entrepreneurship
200
Does gasoline from a particular station have elastic or inelastic demand?
Elastic. If the price of gas at a particular station rises, consumers demand will quickly change and they will go to a different station.
200
Define Gross Domestic Product (GDP)
Dollar value of all final goods and services produced within a country's borders in a year.
200
When someone moves to a new state to look for a job, what type of unemployment are they experiencing?
Frictional Unemployment
200
What is Gross National Product (GNP)?
measure of the nation's income
300
What are the three key economic questions every society must answer?
What to produce? How to produce? For whom to produce?
300
At a given price, when does a surplus occur?
When quantity supplied exceeds quantity demanded.
QS > QD
300
What is the difference between real and nominal GDP?
Real GDP is adjusted for inflation using a base year set of prices.
300
According to the cost-push theory, what is responsible for inflation?
Producers raise prices to meet increased costs.
300
What is an opportunity cost?
The opportunity cost of a choice is the cost of the second best choice available. For example, if you chose to study for your econ final instead of going to see the Hunger Games then viewing the Hunger Games would be the opportunity cost of your decision.
400
What is the difference between a scarcity and a shortage?
Scarcity exists because we have a limited number of resources but unlimited wants. In contrast, a shortage occurs when quantity supplied is less that quantity demanded.
400
Beef prices drop. 1. What happens to the demand of chicken? 2. Which determinant of demand caused the change in demand?
1. Demand of chicken decreases
2. Change in the price of a substitute
400
What are the 5 types of unemployment?
Technological, Cyclical, Structural, Frictional, and Seasonal
400
At equilibrium, a sudden increase in demand occurs. What happens to the equilibrium price and equilibrium quantity?
Both equilibrium price and equilibrium quantity increase.
400
What is the formula for determining the Unemployment rate?
Unemployment divided by Labor Force x 100
UR = U / LF x 100
500
List and explain the 4 major types of economies
Market - economic decisions made by individuals
Command - government or central authority makes economic decisions
Traditional - Tradition and custom govern economic decisions
Mixed - combines elements of all 3 types
500
List the determinants of demand.
Change in Consumer Taste/Preference.
Change in Consumer Income.
Change in Size or Composition of Population.
Change in Price of Substitute or Compliment.
Change in Consumer Price Expectation.
500
What is the formula for the Output-Expenditure Model? What does each variable stand for?
C + I + G + (X-M)
Consumption, Investment, Government Spending, Net Exports
500
List 3 things that are not included in GDP
Intermediate goods, Resale goods, Financial assets, Public or private transfer payments
500
What is Consumer Price Index?
A statistical series that tracks monthly changes in the prices paid by urban consumers for a representative "basket" of goods and services. It is used to track inflation.