1.1-1.2
1.3
1.4-1.6
2.1-2.2
2.3
2.4
2.5
2.6
2.7
100
the concept that there are unlimited wants and needs and limited resources
what is scarcity?
100
When a producer can make the most product or make one unit the quickest
What is Absolute Advantage
100
Consumers will buy more when the price is low and less when the price is high
What is the law of demand
100
The income earned from labor
What are wages
100
Unemployment due to a recession
What is cyclical unemployment?
100
The measurement that uses a fixed basket of goods
What is the Consumer Price Index
100
Those who benefit from unexpected inflation
Who are Borrowers (people paying a fixed rate)
100
GDP = C+I+G+Xn
What is the Expenditure Formula for GDP?
100
The top of an expansion
what is a peak
200
the factor of production that includes man made items like machinery and tools
What is capital
200
When a producer can make something at the lowest opportunity cost
What is comparative Advantage?
200
The law that results in price and quantity having a positive relationship
What is the law of supply
200
The income earned from land
What is rent
200
Structural and Frictional Unemployment together
What is the natural rate of unemployment
200
( Cost of fixed basket in year x / cost of fixed basket in base year) x 100
What is the CPI formula
200
Who lose when there is unexpected inflation/
Who are Lenders (those getting paid a fixed rate)
200
When Xn is negitive
When are imports greater than exports?
200
the bottom of a recession
what is a trough
300
the type of economics that makes prescriptions about the way the economy should work
What is normative economics?
300
OPP Cost (a) = A/B
What is the input formula
300
The market clearing price and quantity indicating where consumers and producers are both happy
What is equilibrium?
300
measure that accounts for total output in a nation
What is Gross Domestic Product?
300
(unemployed workers / labor force ) x100
what is the unemployment rate formula
300
(New-old/old) x 100
what is the rate of change formula (inflation formula)
300
Nominal Interest - Inflation Rate
What is the real interest formula
300
(Nominal / Real ) x100
What is the GDP Deflator formula
300
2
What is a recession
400
The amount of one good or service that is given up when choosing to produce another
What is opportunity cost?
400
OPP cost (a) = B/A
What is the output
400
An example: In the market for redbull, the price of monster has increased resulting in the demand curve for redbull to increase (and move to the right)
What is a substitute shift
400
Government using tax dollars to purchase goods and services
What is government expenditure?
400
labor force/ number of 16+ non-institutionalized civilian population
what is the labor force participation rate formula?
400
Find CPIs for 200 and 2004
Basket in 2000 costs $750
Basket in 2004 costs $800
2000 is the base year.
CPI 2000= 100
CPI 2004= 107 (106.6)
400
Nominal interest is 9% and the inflation rate is 3%
What is a real inflation rate of 6%
400
= 1000 in year 1
= 1500 in year 2
What is nominal GDP
400
4
what is an expansion
500
The model that shows combinations of goods or services that can be produced by a given firm or country
What is a Production Possibilities Curve?
500
Brittany has this advantage in pies
Who has absolute advantage in pies?
500
An example: In the market for gasoline, the price of natural gas has increased, resulting in the supply curve to increase (move to the right)
What is a complement shift
500
EX: Doing the dishes after a meal or folding laundry in your home is not included
What is not counted in GDP? (Shortcoming of GDP)
500
Find the Unemployment Rate in the data provided
Unemployment Rate= 5%
500
The CPI of the 1990 using 1988 as the base year
What is 113.7 (114)?
500
If prices fall, the borrower of $1,000 is one.
Who is the loser
500
If nominal GDP is $300 billion, and the deflator is 150
200 billion
500
The negative gap between potential and real output
What is the output gap? OR recessionary gap
600
in a graphic representation, it is located inside of the Production Possibilities Curve
What is inefficient?
600
Caleb has this advantage.
Who has comparative advantage in pies?
600
An Example: When a demand curve increases (for any reason) and a supply curve decreases (for any reason)
What is a price increase
600
This market connects two parts of the circular flow model by providing income to households from firms
What is the factor market (factors of production) (labor)
600
no need to show work--calculate number in labor force and unemployment rate
Labor force = 115 (80+25+10)
Unemployment Rate= 8.7% (10/115) x100
600
Inflation rate 2017 to 2019
40%
(140-100/100) x 100
600
Real interest rate is 7% and nominal was 5%
inflation rate was -2%.
600
1150 with year 1 as base
What is Year 2 Real GDP
600
the positive gap between potential and actual output
What is economic growth