Market Failures
The point at where consumer surplus and producer surplus meet meet is called what?
Equilibrium
What type of goods are provided by firms/industries?
Private Goods
A government official's abuse of trusted powers for personal gain is known as what?
(Political) Corruption
GDP can be calculated by summing what 4 expenses?
A.) Consumption, Investment, Government Purchases, and Net Exports
B.) Consumption, Industry, Government Purchases, Exports, and Imports
C.) Consumption, Investment, Wages, and Rents
D.) Consumption, Investment, Government Purchases, and Imports
A.) Consumption, Investment, Government Purchases, and Net Exports
What are the 4 categories of economic resources?
Land, Labor, Capital, Entrepreneurial Ability
What are two ways a market can fail?
Supply-Side, Demand-Side
What goods are described as nonrivalry, nonexcludable, and have a free-rider problem?
Public Goods
Medicare is an example of a government unfunded liability, name one more example.
Social Security or Pensions
This type of GDP is based on prices that prevailed when output was produced.
Nominal GDP
What type of unemployment does the United States use?
U-3
What is the difference between the actual price a producer receives and the minimum price they would accept?
Producer Surplus
Name two types of consumer goods and state which one lasts longer.
Durable Goods and Non-Durable Goods; Durable Goods Last Longer.
A budget deficit occurs when?
Whenever a government's tax revenues are less than its spending during the year.
Why would you choose to look at GDP per capita instead of total GDP when comparing countries?
The population of countries are vastly different.
What are 2 of the 4 functions of money?
Any two; (Medium of Exchange, Unit of Account, Store of Value, Must be Liquid).
What type of failure occurs when it is not possible to charge consumers enough for the product?
Demand-Side Failure
Finish the phrase dealing with consumption; "Consumer goods are _________, and capital goods are __________."
A.) Intermediate, Final
B.) Final, Intermediate
C.) Final, Temporary
D.) Temporary, Intermediate
B.) Final, Intermediate
What kind of policy deals with adjusting the tax rates when in a recession?
Fiscal Policy
Two approaches to calculate GDP are:
A.) Income and Expenditure
B.) Real and Nominal
C.) Income and Production
D.) Net imports and Consumption
A.) Income and Expenditure
What is the main difference between Keynes' and Say's economic perspectives?
Say's believes the economy will correct itself, and does not need government intervention.
Keynes' believes the economy will not correct itself and government intervention is needed to prevent cyclical unemployment.
A failure that occurs when a firm does not pay the full cost of producing its output.
Supply-Side Failure
What type of good can be provided through the market system and is provided by the government because of its positive externalities?
A.) Private Goods
B.) Public Goods
C.) Quasi-Public Goods
D.) Durable Goods
C.) Quasi-Public Goods
This type of failure occurs when tasks keep getting delegated from one group to another, and the task ultimately never gets resolved.
A.) Special-Interest effect
B.) Earmarks
C.) Collective-Action problem
D.) Principal-Agent problem
D.) Principal-Agent problem
What type of measurement is the GDP?
A.) A Fiscal measure
B.) A Monetary measure
C.) A Nominal measure
D.) A Government measure
B.) A Monetary Measure
What is added to the M2 money supply that M1 doesn't have?
Near Monies (Savings, Bonds, and Investments)