Fundamentals of Economics
The Basic Economic Problem.
What is scarcity?
According to the Law of Demand when you increase price.
What causes Quantity Demanded to decrease?
The Act that restricts Monopoly power.
What is the Sherman Anti-Trust Act?
The three main functions of money.
What are a medium of exchange, standard of value and a store of value?
When you invest in a corporation in order to receive dividends.
What is stock?
The basic economic question is answered by in a command economy.
Who is the government?
What is PRIME?
The main government measurement of economic growth.
What is GDP?
The type of money we use today that is not backed up by gold or silver.
What is fiat money?
The type of loan that requires collateral.
What is a secured loan?
Chart that analyzes scarcity and opportunity cost.
What is the Production Possibilities curve?
Where supply and demand intersect.
What is the equilibrium?
When the general level of prices increases.
What is Inflation?
The three tools of monetary policy.
What are the reserve requirement, the discount rate and open market operations?
What is a credit card?
The five characteristics of capitalism.
What are private property, profit motive, economic freedom, competition and the role of government?
When a country produces a product at a lower opportunity cost.
What is comparative advantage?
The recurring ups and downs of real GDP.
What is the business cycle?
The policy the Fed uses to stimulate economic growth.
What is expansionary monetary policy?
What is your credit score?
Three countries that have or had a communist form of government.
What is the USSR, China and North Korea?
The result of tariffs on a product.
What are higher prices?
Three things that shift the Production Possibilities curve to the right.
What is new technology, additional resources and international trade?
The U.S. went off this completely in 1971 which means our money is no longer backed up by gold.
What is the gold standard?
The type of auto insurance that you are required to purchase on your car.
What is liability?