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Intro to Economics

100

Define scarcity

What is unlimited desire with limited resources

200

The similarities and differences between absolute and comparative advantage

What is absolute advantage being a country's ability to produce a certain good better than another country, and comparative advantage would be a country's ability to produce a good more efficiently than another country

300

What are the four basic assumptions of the productions possibilites curve

What is Two Goods: Resources are used to produce one or both of only two goods. This is a simplifying assumption that makes it easy to display production alternatives using graphs. More than two goods could be analyzed using advanced mathematics. Fixed Resources: The quantities of labor, capital, land, and entrepreneurship resources do not change. This is a reasonable assumption, but it can be relaxed to analyze the consequences of changes in these resources. Fixed Technology: The information and knowledge that society has about the production of goods and services is fixed. This is another reasonable assumption that can be relaxed to analyze the effects of technology changes. Technical Efficiency: Resources are used in a technically efficient way. That is, the maximum possible production is obtained from the resource inputs.

400

the main difference between a capitalist and market economy

What is capitalist being governmental owned, and market being citizen controlled

500

The concepts from Adam Smith and Laissez-Faire

What is a non-governmental market with a statistical backup of why that is a fine system

Supply and Demand

100

Define supply and what the law of supply is

Supply is the goods and services provided by whom ever purchases that good or service. The law is that deman directly affects supply; when demand goes up, supply goes up. When demand goes down, guess what happens.

Measuring the Economy

100

Define GDP and what is included and not included

What is the market value of all final goods in a year. Included: Consumption, investment, government spending, and net exports Excluded: Supply

200

The difference between GDP and GNP

What is Gross National Product which is anything made outside the particular country we are talking about. GDP is within the country.

300

Define inflation and provide an example of who is helped and who is hurt

What is the worth of money being too high. An example would be if you take a loan out of a bank and inflation goes up after you already took out the loan, you would be saving money, and the bank would be losing money since you have a fixed rate of what you pay back.

Fiscal and Monetary Policy

100

Define classical and keynesian economics

What is classical being letting economics taking its own course and keynesian is making decisions based off of what has happened and a theory of what might happen next in the economy in order to bring it back to its full extent.