More Terminology
What is TINSTAAFL?
There Is No Such Thing As A Free Lunch--the concept in economics that nothing is ever free, there is always a cost for someone.
U.S. publicly held debt as a percentage or share of Gross Domestic Product (GDP) has reached what level?
100 percent of GDP--the highest since World War II.
True or False: Healthcare inflation lags overall inflation.
False
A durable good is one that lasts at least 3 years if used regularly.
True or False: Opportunity cost is the same thing as the dollar price of a good.
False
This third-party effect can be either positive or negative.
Externality
The total value of all goods and services produced within a country in a given year.
Gross Domestic Produce--GDP
Provide one real-world example of agglomeration effects.
Film industry in Hollywood.
High-tech industry in Silicon Valley.
Semiconductor manufacturing in Taiwan.
The U.S. national debt just crossed above what level in dollar terms?
40 trillion dollars
The ability to produce a good at a lower opportunity cost than another producer, even without being the most efficient overall producer.
Comparative advantage
What does the recent spike in the yield of the 30-year Treasury Bond to 5.3 percent indicate?
It signals market concern--reflecting investor sentiment about inflation and growth, and worry about high national debt levels.
It is an economy in which higher-income groups recover and grow while lower-income groups continue to decline, widening the gap between them.
Team question: This term, used in the article about Colleges and Socialism, is used to describe information communicated through the cost of a good or service that helps people recognize scarcity and make trade-offs.
Price signal
Which Treasury instrument sets the benchmark for loan rates such as mortgages?
The 10-Year bond.
Bonus: What is the lender spread between the 10-year and mortgage rates?
What are the three economic questions that every economy must answer?
What goods and services should be produced?
How should these goods and services be produced?
For whom should these goods and services be produced?