Back To Basics
If You Build it They Will Come
Variable Conundrum
Economic Battlefield
Alien Economics
100
What is Economics?
The study of how individuals and society choose to use scarce resources to satisfy unlimited wants.
100
What curve relates tax revenue to tax rate?
Laffer Curve
100
What is the Consumption Function?
C = a + byd
100
According to Milton Friedman, what "is and always everywhere a monetary phenomenon"?
Inflation
100
What is a trade surplus?
EX > IM
200
What is Opportunity Cost?
The net best opportunity forgone when a choice or decision is made.
200
What will cause a shift in the Quantity Supplied?
A change in Price
200
What is the money multiplier equation?
Ms = 1/rrr * ER
200
According to Supply Side economists, tax cuts do what?
Pay for themselves
200
When your currency has increased in comparison to another currency, we say it has?
Appreciated
300
What are the two main fields of economics and what do they study?
Macroeconomics- Study of aggregates, and the economy as a whole Microeconomics- Study of firm behavior, individual units of society
300
What causes a shift in supply?
Price of Related Goods (inverse) Input Prices (inverse) Technological Change (direct)
300
What is the equation for equilibrium GDP?
Y* = (1/(1-b))*(a-bT+I+G)
300
Keynesian Economists believe that in order to boost AE in the economy, what type of policy should be pursued?
Expansionary Fiscal Policy
300
What does PPP stand for?
Purchasing Power Parity
400
What is the Fallacy of Composition?
What is good for one, is not necessarily good for all.
400
What causes a shift in Demand?
Price of Substitutes (direct) Price of Complements (inverse) Income (depends on type of good) Taste and Preference (Direct) Expectations (inverse)
400
What is the government spending multiplier?
Y* = (1/(1-b))*G
400
Monetarists believe that in order to minimize inflation, we should grow our money supply at what rate?
The rate of GDP growth
400
The foreign exchange index invented by "The Economist" in 1986 is called?
The Big Mac Index
500
Name the factor of production that corresponds to this form of payment. Interest
Capital
500
What law corresponds to the title of this section? (If you build it they will come)
Say's Law
500
What is the equation for Quantity Theory of Money?
M*V = P*Y
500
According to Milton Friedman, enacting policies like Keynesian Economics called for, that cause wide fluctuations in GDP, is like what?
A fool in the shower
500
Austrian Business Cycle proposes what 3 prescriptions for the economy?
End the Fed "Hard Money" Free the Market
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