Basic Principles
Economic Systems
Demand/Supply
Market Structures
GDP
100
A subset part of Economics study that focuses on large scale smaller scale issues such as profit maximization and individual industry prices
What is Microeconomics
100
An economic system that revolves around customs and rituals passed down through generations
What is Traditional
100
This effect on QUANTITY DEMANDED develops when customers lose satisfaction the more they consume of any good or service
What is Diminishing Marginal Utility
100
This market structure is the most efficient
What is Perfect Competition
100

What are the four components of GDP?

consumer spending, investment spending, government spending, net exports

200
Education, national parks, libraries, and highways are all examples of this
What is a public good
200
This type of economic system combines individual decision making with limited government influence
What is a mixed economy
200
What determinant measures the change in demand for hot dog buns if the price of hot dogs changes?
What is Price of Related Goods-Complimentary
200
This market structure is characterized by 3-4 large companies dominating 70% of market share or more
What is an Oligopoly
200

Provide two examples of things that would not be counted in GDP

Used goods, financial transactions, underground economy...

300
cash registers, tractors, computers, and machinery would all fall under this factor of production
What is Capital Resources
300
An economic system in which the government answers all 3 basic economics questions
What is a Command Economy
300
For consumers, will an increase in price affect Demand or Quantity Demanded
Quantity Demanded
300
In what two ways do Oligopolies and Monopolies hurt consumers?
Higher prices, less product choice
300

Why are intermediate goods not counted in GDP?

We only count the final good so we don't double count.

400
The motivating force for consumers in a capitalist system
What is rational self-interest
400
The term "Laissez Faire" is most closely related to which economic system
What is Market
400
If Supply for a product decreases, what will happen to the price and quantity of that product
Price increase, Quantity decrease
400
How do companies competing in the Perfect Competition market structure beat their competitors?
Lowest Price
400

Does it count for GDP and if it does which component does it fall under?  You buy a Nintendo Switch that is made in Japan.

Net Exports

500
A side effect that can harm or benefit others in an economy outside of the producer or consumer
What is an externality
500
Communism was first introduced through a publication written by this economist
Who is Karl Marx?
500
What three government Tools will shift the entire Supply curve?
Taxes, Subsidies, Regulations
500
What are the four ways companies in the Monopolistic Competition market structure engage in non-price competition?
Physical Characteristics, Location, Service Level, Advertising
500

Which component of GDP is the biggest and provides the most money?

Consumer expenditures

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