Competitive Markets
Monopoly
GDP/CPI
Unemployment
Production & Growth
100
define competitive market in your own words
What is a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker
100
define monopoly
What is s firm that is the sole seller of a product without close substitutes
100
What do GDP and CPI stand for?
GDP: gross domestic product CPI: consumer price index
100
What is the difference between being unemployed and not in the labor force?
Unemployed:not employed, were available for work, and had tried to find employment during the past 4 weeks; also includes those waiting to be recalled to a job for which they had been laid off Not in the labor force: neither employed or unemployed; full-time students, homemakers, retirees
100
define productivity
What is the quantity of goods and services produced form eat until pdf labor input
200
what is the formula for average revenue?
What is total revenue/quantity sold
200
What is the fundamental cause of a monopoly?
What is barriers to entry
200
Define GDP and CPI
GDP: the market value of all final goods and services produced within a country during a given period of time CPI: a measure of the overall cost of he goods and services bought by a typical customer
200
What is the formula for the unemployment rate? What does the employment rate indicate?
(# of unemployed/labor force)*100 The percentage of the labor force that is unemployed
200
what are the differences between physical capital and human capital?
physical capital: the stock of equipment and structures that are used to produce goods and services human capital: the knowledge and skills that works acquire through education, training, and experience
300
What is the profit maximizing output for a competitive firm?
When marginal revenue=marginal cost
300
DAILY DOUBLE: what are the three main sources of barriers to entry in terms of a monopoly?
What is monopoly resources, government regulation, the production process
300
What is the formula for GDP? BONUS: earn 200 bonus points for correctly identifying what each variable represents
Y (GDP)= C (consumption) + I (investment) +G (government purchases) + NX (net exports)
300
define the natural rate of unemployment
the normal rate of unemployment around which the unemployment rate fluctuates
300
What is the property of diminishing returns?
The property whereby the benefit from an extra unit of an input declines as the quantity of the input increases
400
What is another name for a competitive firm's supply curve?
What is the marginal cost curve
400
What are two examples of government created monopolies? Provide examples of each
Copyright and patent
400
what is the formula for CPI?
(Price of basket of goods and service in current year/price of basket in this year)*100
400
Define discouraged workers. Are these workers represented in unemployment statistics?
Individuals who would like to work but have given up looking for a job; no
400
Explain the catch-up effect
the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich
500
What is the difference between a shutdown and exit, and what are the conditions for both? (when would a firm shutdown, when would they exit?)
-shutdown: short-run decision to not produce anything during a specific time period because of current market conditions -shutdown if P
500
define natural monopoly
What is a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost that could two or more firms
500
What is the formula for calculating the inflation rate? BONUS: earn 200 bonus points for correctly defining inflation
(CPI in year 2-CPI in year 1)/(CPI in year 1)*100 inflation:an increase in the overall level of prices in the economy
500
Who can receive unemployment insurance?
The unemployed who were laid off because their previous employers no longer needed their skills
500
Are poor countries better of pursuing inward-oriented policies or outward-oriented policies? BONUS 200 points: define outward-oriented policies
-outward oriented policies -increase productivity and living standards by interacting with the rest of the world; integrating into the world economy
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