Economic Systems
This is the reason for economics.
What is scarcity?
This law states that as price increases, this decreases.
What is the law of demand?
This basket of goods is used to measure inflation.
What is Consumer Price Index (CPI)?
This type of policy is used by the Fed and involves manipulating the money supply.
What is monetary policy?
This is used to determine eligibility for federal loans.
What is FAFSA?
Paul chooses to go to school instead of sleeping in. Sleeping in is an example of this.
What is opportunity cost?
This law states that as price increases, this also increases.
What is law of supply?
An sustained increase in this is referred to as an expansion.
What is GDP (Gross Domestic Product)?
These are implemented by the government to protect intellectual property. They enable producers to have a monopoly for a short period of time.
What is a patent/trademark/copyright?
What is sticker price?
These are the three economic questions.
What to produce, for whom to produce it, and how to produce it?
This increases as price increases. (be careful!)
Louise is an accountant for Bank of America. With new AIs coming out, she finds herself out of a job. She is facing this type of unemployment.
What is structural unemployment?
These laws prevent corporations from merging, if it means they will have too large a share of the market.
What are antitrust laws?
Carla determines that if she goes to college, she can become a doctor and make $200,000/year, but be $60,000 in debt.
If she goes to trade school for free, she can become a mechanic for $80,000/year.
In this scenario, college has a better one of these.
What is ROI (Return on Investment)?
This economic system has an extremely high barrier to entry. Charlotte Water is an example.
What is a monopoly?
A new technology in farming would shift this for agriculture to the right.
What is supply?
During an expansion or peak in the Business Cycle, the stock market is often expanding. It is referred to as this type of animal.
What is a bull?
Germany can produce 100 cars/hour, OR 10 pineapples/hour.
America can produce 100 pineapples/hour, OR 20 cars.
Germany has this type of advantage in car production.
What is comparative advantage?
Student A is a U.S. citizen who has filled out the FAFSA and discovered they are not eligible for financial aid. What type of loan could this student get that would have a fixed interest rate?
What is an unsubsidized (federal) loan?
Cereal is an example of this economic system, because it involves many slightly heterogenous goods.
What is monopolistic competition?
An increase in the price of ketchup, a complimentary good for hot dogs, would do what to the market for hot dogs?
Shift the demand to the left. (decrease in demand)
During a contraction, trough, or recession, the stock market is doing poorly. It is referred to as this type of animal.
What is a Bear?
An increase in these on Russian oil will increase the price of oil in the U.S.
What are tariffs? (protectionist tariffs)
This is an advantage of enlisting in the military in terms of postsecondary education (college).
What are grants and loans to pay for college?