Show:
Introduction
Demand and Supply
Markets
GDP
Economic Challenges
100
What is Economics?
The study of how to allocate scarce resources for unlimited wants and needs.
100
What is the the matching term for this definition: "consumers buy more when price goes down, less when price goes up"
The Law of Demand.
100
What are the four types of market structures we learned about?
1) Perfect Competition 2) Monopolistic Competition 3) Oligopoly 4) Monopoly
100
What are the components of GDP?
Consumption Investment Government Spending Net Exports
100
What are the three greatest economic challenges?
1) Unemployment 2) Poverty 3) Inflation
200
What are the four economic systems we learned about?
1) Traditional 2) Market 3) Mixed Market 4) Command
200
The 10th cheeseburger is not as good as the second because of....
The Law of Diminishing Marginal Utility
200
What are the characteristics of an oligopoly?
1) A few dominant firms controlling the industry 2) Some control of the prices 3) High barriers to enter and exit the market 4) Differentiated and standardized product
200
What national accounting measurement considers the population of a country?
GDP per capita
200
What is the difference between U3, U4, and U6?
1) U3 - official unemployment rate 2) U4 - includes discouraged workers 3) U6 - includes underemployed workers
300
What model represents all the different possible combinations of two outputs for a given country?
The Production Possibilities Model.
300
What factor(s) change the quantity demanded and quantity supplied?
Price.
300
Why is it easier to exit a perfectly competitive market than an oligopoly?
The cost of going out of business is cheaper in PC. More firms to buy your equipment and less start up costs, for examples.
300
Where do subsidies and food stamps get accounted for in GDP?
Investment and Consumption
300
Why does printing a lot of money lead to hyper inflation?
Scarcity creates value so printing a lot of physical money reduces the value of the currency.
400
What idiom coined by Adam Smith is used to describe the self regulating nature of the free market?
The Invisible Hand.
400
What 6 factors change the demand?
1) Income 2) Consumer Expectations 3) Market Size (Population) 4) Demographics 5) Consumer Tastes/Advertising 6) Availability of Complements and Substitutes
400
What would a monopoly do to keep their prices high they started falling?
They would reduce supply and create a shortage so prices would go up.
400
What happens to a nations GDP if they are a heavy importing country?
Their GDP will decrease.
400
What four factors effect poverty?
1) Education 2) Discrimination 3) Demographic Changes 4) Economic Shifts
500
Give two statements to illustrate the difference between positive and normative economics.
Answers will vary.
500
What would happen to the quantity demanded, price, and supply of laptops if the Government granted a subsidy to Dell computers for their new laptops? If there is a shift in supply or demand, which way would the shift go?
The quantity demanded would go up The price would fall The supply would increase, shifting to the right
500
What is market allocation and why is it illegal?
Firms agree to not compete with each other in certain regions. This can create geographical monopolies.
500
GDP does not include all goods services that have value, why is that? Give two different examples.
Because non-market activities are typically done without a charge, and black market transactions are illegal.
500
What effect does inflation have on financial savings accounts and how does that influence the economy?
Inflation lowers the value of future money so people are more likely to spend money now and not have any savings.