Chapters 1&2
Chapter 3
Chapter 6
Chapter 7&8
100
The principle that states our wants and needs are greater than our ability to satisfy them.
What is scarcity?
100
This law states: "when price increases, the quantity demanded decreases."
What is the Law of Demand?
100
This describes periodic fluctuations in the overall economic activity over time.
What is the Business Cycle?
100
This is the name for goods that are sold directly to consumers.
What are Final Goods?
200
These are the two assumptions made by economists.
What is "people are rational" and "people act in their own self-interest"?
200
For this type of good, demand decreases when income increases.
What is an Inferior Good?
200
This is the definition of GDP.
What is "the market value of all final goods and services produced in an economy over a given period of time?"
200
These are the top two goals for the Fed.
What are Maximum Employment and Price Stability?
300
The value of the next best alternative not chosen.
What is "opportunity cost"?
300
This is the state where market benefit is maximized.
What is equilibrium?
300
This is an increase in average prices.
What is inflation?
300
These are the two reasons the Aggregate Demand curve is downward sloping.
What are "Wealth effect" and "Interest Rate Effect"?
400
This describes the maximum amount of 2 goods or services that a society can produce over a period of time given available resources.
What is a Production Possibilities Frontier?
400
These 5 things comprise the determinants of suppy.
What is Input Costs, Technology, Prices of Related Goods, Expectations, and Number of Firms?
400
This index is used to calculate inflation.
What is The Consumer Price Index?
400
These two deficits comprise the "Twin Deficits."
What are "Trade deficit" and "Federal Budget Deficit"?
500
The ability of one nation to produce a good or service at a lower opportunity cost than another nation.
What is Comparative Advantage?
500
These are the 3 fundamental questions the market answers.
What are we going to produce? How are we going to produce those goods and services? For whom will we produce those goods and services?
500
These are two of the costs of inflation.
What is "reduced investment spending" and "shoe-leather costs"?
500
The nominal interest rate is found by adding this to the real interest rate.
What is the rate of inflation?
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