Microeconomics
What is the economic term for the additional satisfaction gained from consuming one more unit of a good?
Marginal Utility
What is the term for a decline in GDP for two consecutive quarters?
Recession
What is the term for spreading investments to reduce risk?
Diversification
What type of advantage allows a country to produce goods at a lower opportunity cost?
Comparative Advantage
What is the name of the economic system where supply and demand determine prices, with little government interference?
Free Market Economy
What happens when the price of a good is set below its equilibrium price?
Shortage
What does the Phillips Curve illustrate the tradeoff between?
Inflation and Unemployment
What does ROI stand for in investing?
Return on Investment
What economic principle states that markets tend to move toward equilibrium?
Law of Demand and Supply
Which term describes a rise in the general level of prices across an economy?
Inflation
What is the name of the condition where a firm’s marginal cost equals marginal revenue in perfect competition?
Profit Maximization Condition
What is the term for the portion of a bank’s deposits that must be kept as reserves?
Required Reserve Ratio
What term describes the additional return investors require for holding a risky asset over a risk-free asset?
Risk Premium
What is a tax on imported goods called?
Tariff
What is the term for a situation where no participant in a market can improve their position without making someone else worse off?
Pareto Efficiency
What is the law stating that as more of a good is consumed, additional satisfaction decreases?
Law of Diminishing Marginal Utility
Which economic model explains long-run GDP growth based on capital, labor, and technology?
Solow Growth Model
What is the stock market index that tracks the 500 largest U.S. companies?
S&P 500
What term describes a situation where increased production leads to lower per-unit costs?
Economies of Scale
What is the name of the economic condition where inflation and unemployment rise simultaneously, contradicting the Phillips Curve?
Stagflation
In game theory, what is the term for a strategy that is the best response regardless of the opponent's strategy?
Dominant Strategy
What economic term describes a prolonged period of stagnation and deflation, as experienced by Japan in the 1990s?
Lost Decade
Which economic principle suggests that asset prices reflect all available information?
Efficient Market Hypothesis
Which economic concept describes the inefficiency that occurs when a monopolist produces less than the socially optimal quantity?
Deadweight Loss
What is the term for when a central bank buys government bonds to increase the money supply and stimulate the economy?
Quantitative Easing