Opportunity Cost
Money Actually Paid (ex. rent, $180 for collegiate club)
What is Explicit Cost?
What are the three policies?
What is fiscal policy, monetary policy, and structural policy?
Name as many of the 6 things macroeconomists look for to judge the economy: (100 points for each)
What is: economic growth and standard of living, productivity, recessions and expansions, unemployment, inflation, economic interdependence between nations
The value of what you gave up? (ex. time, tips you could have made)
What is Implicit Cost?
Manages money supply and interest rates
What is Monetary Policy?
Adding up individual economic variables to obtain economy-wide variable; adding up all consumer spending
What is aggregation?
The value of the next best alternative you give up when you make a choice
What is Opportunity Cost?
Manages government spending, taxes, and the budget
What is fiscal policy?
True or false: every macro variable is an aggregate (ex. total GPD, inflation, etc.)
What is True
The idea that a rational person or entity should only make choose something if the benefits outweigh (or are equal to) the costs
What is cost benefit principle?
Changes the institution and the rules of the game
What is Structural Policy?
A period with stronger economic growth
What is an expansion?
A change in cost or benefits which then changes behaviors. (Ex. 7brew Needoh)
What is Incentives?
The Federal Reserve (the Fed) runs this policy
What is Monetary Policy?
A slowdown in economic growth