Econ Principles
Supply and Demand
Banking
The Economy
Market Features
Lebron James
100
What is a surplus?
Too much of a good or service (more supply than demand)
100
What are substitute goods?
Two similar goods and you can buy one or the other (nike or adidads)
100
What is a government bond?
A loan to the government and the government pays you back in a few years with interest (low risk)
100
What is negative inflation called?
Deflation
100
What is Market Power?
The control over price that a single company has
100
What sport other than basketball did he play in high school?
Football
200
What is shortange?
Not enough of a good or service (more demand than supply)
200
If sugar and flour become more expensive, what will happen to natalie's cookies and why?
Increase cost of inputs - less supply
200
What is diversification?
The idea that you invest in several different investments - its more safe that way (less risk)
200
If a country has an inflation rate that is too high, what happens?
Prices rise too quickly, people can't afford to live
200
OPEC is a cartel. What do they control the price and supply of?
Oil in the middle east
200
What's his wife's name?
Savannah (Brinson) James
300
What is a good?
Something that is a physical object
300
What is price called if Supply and Demand meet "naturally"
The Equilibrium price
300
What is this graph showing?
How businesses close after several years of operating, on average.
300
Why do governments sometimes use stimulus checks?
To boost spending - people spend money in businesses - businesses hire people + improve the economy
300
At which price on a graph do perfect competitive producers sell?
The equilibrium (efficient) price - not true for other market types
300
How many times has he been named NBA MVP for a season?
Four Times
400
What is a service?
An action such as doing work
400
If producers expect to be able to sell for more money next year, what will happen and why? (to demand or supply?)
Decrease supply now -> change in producer expectations
400
What is a CD or timed deposit account?
You keep your money in the bank for a few months, take it out after that with some interest.
400
Explain the multiplier effect of banks
When someone deposits money in a bank, the bank is able to put most of that money out into the economy through loans - this increases money in the economy and expands the economy
400
Why do consumers like perfect competition markets?
Because they have lots of options for who to buy from
400
In what year did LeBron win the Rookie of the year award?
2004
500
Which resource represents knowledge which is being attained? (it has a specific name)
Human Capital - Job Training
500
At this price floor, is price being set below or above the equilibrium?
Price Floor = price above equilibrium
500
What is a mutual fund?
A combination of many stocks and bonds
500
What is per capita GDP?
The average GDP or production per person
500
With cartel and collusion behavior, which other market type can Oligopoly act like?
Monopoly
500
In what year did LeBron win his first nba championship?
2012
600
What is a PPF?
A graph that shows the combinations of two goods that could be produced by an economy or a business
600
Will we have a suprlus (extra supply) or shortage (extra demand) in this situation, and how do you know?
Shortage (more quantity demanded than quantity supplied)
600
What is a Mortgage Loan?
A Special loan to buy a house
600
What is contractionary fiscal policy?
It slows down an economy when it is out of control (particularly due to inflation)
600
what does it mean to be a price setter?
You can charge different prices you want - monopolies are price setters
600
How old is he?
41!