Chapter 4,5
A product with PED = 0 is said to have this type of demand.
Perfectly Inelastic Demand
What is the Human Development Index (HDI)?
A composite index measuring average achievement in key dimensions of human development: health, education, and standard of living
The law that states as price increases, quantity demanded decreases, ceteris paribus.
Law of demand
A firm’s ability to set prices above marginal cost due to lack of competition.
Market power
Goat football player
Messi
This type of tax is applied to goods with negative externalities.
Corrective(Pigovian taxes)
Name two types of injections in the circular flow of income.
Investment and government spending
What is a normal good? (If wrong then 100 points get deducted for everyone)
a good whose demand increases as consumer income rises, and decreases as consumer income falls, meaning there's a positive relationship between income and demand.
A market dominated by a small number of large firms.
Oligopoly
Which artist won the 2025 grammys for best album
Beyonce
What is a price ceiling?(Double points if you give a case study)
A government-imposed legal maximum price.
In the income approach, which types of income are summed to calculate GDP?
Wages, rent, interest, and profits
What are substitute goods
Substitute goods, in economics, are products that can be used in place of each other to satisfy the same need or want, meaning a consumer can choose one over the other, and an increase in the price of one will likely lead to an increase in demand for its substitute.
The point where marginal cost (MC) equals marginal revenue (MR), determining output for profit maximization.
Profit maximizing level of output
Which team won the 2024 NBA championships?(Double points if you name finals MVP)
Celtics(Jaylen Brown)
Purpose of subsidies
Subsidies, provided by governments, aim to reduce the cost of essential goods and services, support vulnerable populations, and incentivize activities that align with national priorities, such as agricultural production and renewable energy adoption.
What is the purpose of the OECD Better Life Index? Double Jeopardy
To measure well-being across countries based on various factors, including housing, income, jobs, community, education, environment, and health
A good with a negative income elasticity of demand.
An inferior good
A situation where a single firm dominates an industry and sets prices.
Monopoly
Who holds the record for the most World Championships in Formula 1?
Michael Schumacher & Lewis Hamilton
Explain 2 key differences between a public and a private good
The two key differences between public and private goods are non-excludability (public goods cannot be denied to anyone, regardless of payment) and non-rivalry (one person's consumption doesn't diminish the availability for others).
What are key differences between real and nominal GDP? 2X points if can answer What is the different between GDP % GNI?
Real GDP accounts for inflation and price changes whereas nominal gdp doesnt. GNI accounts for remittances and income from abroad whereas GDP only looks at output within a country.
A graphical representation showing different combinations of two goods that can be produced with given resources.
PPC curve
How does monopolistic competition differ from perfect competition in terms of product differentiation? (If correct you can deduct 500 points from any team you want)
In monopolistic competition, firms sell differentiated products (through branding, quality, or features), whereas perfect competition has identical products.
Which film won the academy award for best picture in the 2024 oscars( 1.5x points if you name the other movie it was released with)
Oppenheimer