Exchange Rates
The ____________ curve for euros increases when Americans want to buy German cars
Demand curve
When analyzing the input numbers for production, we use the acronym:
IOU (Inputs, other under)
Why would a government impose a tariff?
In order to raise the price and lower the quantity sold of an import.
The Laffer curve compares what two things?
Tax Revenue vs. Tax Rate
The leaders of which two countries are meeting in Singapore next month?
North Korea and USA
The ____________ curve for dollars increases when Americans want to buy German cars
Supply curve
After calculating the opportunity cost of production (IOU), do we choose the larger number or the smaller number for each item?
Smaller number
Why would a government provide a subsidy?
In order to lower the price and increase quantity sold of a good.
The Phillips Curve compares what two things?
Unemployment Rate vs. Inflation Rate
Which expansion NHL franchise has surprisingly advanced to the Western Conference finals?
Vegas Golden Knights
The value of euros ____________ when Americans want to buy German cars
Increases
Give a reasonable example of the terms of trade between the US and Canada.
Answers will vary
What are some potential residual impacts of imposing a tariff on another countries' goods?
They may impose a tariff on your goods.
What is it called when both the Inflation Rate and the Unemployment Rate increase over a period of time?
Stagflation
Which non-Avengers superhero has a movie coming out this weekend?
Deadpool
The value of dollars ____________ when Americans want to buy German cars
Decreases
The terms of trade are 5 shoes for 2 haircuts.
How many shoes can I get for 12 haircuts?
30 shoes.
What is a specific good that may receive a subsidy?
Answers may vary
Why is the Laffer Curve shaped the way it is?
It is concave down because tax revenue will increase with an increase in tax rate, but only until a certain point. Individuals will eventually stop working/buying items if the tax rate is too high, thereby decreasing revenue.
According to a recent episode of Australia's 60 Minutes, why did the famous Malaysian Airlines flight MH370 disappear 3 years ago?
Pilot committed suicide
Give an example of why the demand for Mexican pesos would increase.
Answers vary
The terms of trade are 5 socks for 2 pants.
How many pants can I get for 18 socks?
7.2 pants
Name one free trade treaty that the US has belonged to.
NAFTA (North America), TPP (Pacific), T-TIP (Atlantic), CAFTA-DR (Central America)
Why is the Phillips Curve shaped the way it is?
When more people are unemployed, they have less money to spend, meaning prices will remain constant (low inflation rate).
When more people are employed, they have more money to spend, meaning prices will rise (higher inflation rate).
What did the US Supreme Court rule as federally legal yesterday (May 14)?
Sports gambling