Economic Indicators and Business Cycle
During which phase of the business cycle does the economy experience steadily rising output and increasing employment rates?
Expansion
A student desperately wants the latest smartphone but has no money to buy it. According to the definition of demand, why does this situation NOT represent true market demand?
The student doesn't have the ability to buy the smartphone
A government must decide whether to spend its budget on building new hospitals or improving public schools. This situation best describes which economic concept?
Scarcity
Which of the following best defines a 'need' according to the presentation?
An essential item you need for survival and basic health
How many countries in North America (including the US) has Mr. Lee been to?
3 (Canada and Mexico)
The bottom of the cycle characterized by the lowest amount of production is called:
Trough
A coffee shop lowers the price of lattes from $5.00 to $3.50. According to the Law of Demand, what is the MOST likely outcome and why?
Sales will increase because consumers can now afford to buy more lattes at the lower price
Maria chooses to work overtime on Saturday to earn extra money instead of attending her friend's birthday party. What is the opportunity cost of her decision? (Hint: it's not a dollar amount)
The fun of going to the party
A student has a working smartphone but wants to buy the newest model because all their friends have it. Is this an example of a "want" or a "need"
Want because he already has a working smartphone
What day of the week is it?
Wednesday
The total monetary value of all goods and services produced within a country is called:
GDP Gross Domestic Product
If beef prices become so expensive the typical consumer won't buy beef anymore, they will look to buy chicken or pork instead. This is an example of the (blank) effect
Substitution
Because human desires are unlimited but our resources are limited, we have:
Scarcity
What is the key difference between goods and services?
Goods are physical, tangible objects. Services are work done for you
When is you next day off of school?
October 12
The statistic in which you divide a country's GDP by it's population is called what?
GDP per Capita
A furniture manufacturer discovers that the market price for dining tables has increased by 40%. According to the Law of Supply, what should the manufacturer do and why?
Increase production of dining tables because they'll be able to make a bigger profit since the price went up
Tools and resources you use to help you make money, like a pizza oven, pizza ingredients, and a car for deliveries for a pizza shop are an example of what factor of production?
Capital
Service
What movie about a video game is being released in theaters this Friday?
Resident Evil
The output of production of goods and services is called:
Productivity
A bakery currently sells bread at $4 per loaf. At this price, the bakery wants to sell 100 loaves daily, but customers only want to buy 60 loaves. What market condition exists, and what will the bakery do to sell off its extra bread?
A surplus exists; the bakery will likely lower prices until quantity demanded equals quantity supplied
If I'm writing code for a new software update for an app, I'm using this factor of production since I'm doing the work
Labor
The value of what I give up when I make a decision is called the "Blank" cost?
Opportunity
In what local town is Grand Caverns located?
Grottoes