Econ definitions
Econ graphs and tables
People, history, and current events
Random Finance
Stocks and Bonds
100
What is inflation?
A sustained increase in the price level of an economy (reduces the purchasing power of a dollar)
100
What is this graph called?
Business cycle
100
Choose one: Adam Smith, John Maynard Keynes, Karl Marx
And say one defining characteristic about this economist.
Smith: 1776 Wealth of Nations, invisible hand, minimal govt interference
Keynes: FDR's advisor during Great Depression, macroeconomics, advocate for more govt intervention
Marx: father of communism, "The Communist Manifesto", classless society
100
Name one way a business raises money
1. Loans
2. Investors
3. Stocks
Etc.
100
Name one type of stock and explain it
Not all answers but:
1. Blue-Chip
2. Growth
3. Dividend
4. Penny
200
Name 3 types of taxes.
progressive, regressive, proportional, sales, excise, property, carbon, income, tariff (any 3 is ok)
200
Identify the supply and demand curves, and the market equilibrium point on this graph.
Supply - blue
Demand - red
Equilibrium - intersection of S and D
200
The 2008 recession was caused by a speculative bubble bursting in which specific market?
Housing
200
What is one finance app that uses AI
Robinhood, Mint, Pocketgaurd, Acorn, etc.
200
Name one type of bond and explain it
1. Government
2. Municipal
3. Corporate
4. Junk
300
What does GDP stand for? Define it as specifically as possible.
Gross domestic product - value of all final goods and services made within a country during a specific period.
300
The Phillips Curve shows an inverse relationship between what two things?
Inflation and unemployment
300
What is the name of the economic program that Franklin D. Roosevelt created to address the Great Depression?
BONUS (100 pts): name one specific aspect of this program - could be a governmental program created, etc.
The New Deal
BONUS: social security, FDIC, SEC, WPA, National Labor Relations Board, etc.
300
Name 2 types of businesses and explain them
1. Sole Proprietorship
2. LLC
3. C-Corp
4. Franchise
5. Non-Profit
300
What is the difference between the S&P 500 and Dow Jones Industrial Average
S&P 500 covers 500 market-cap stocks while the Dow Jones covers 30 blue-chip stocks
400
What is a discouraged worker? Are they counted in the unemployment rate?
1. People who don't have a job and have given up looking for one
2. No
400
Fill out this table (100 points for each right answer):
and BONUS (100 pts): which good has the problem of the tragedy of the commons?
Note: artificially scarce goods = club goods
BONUS: common good
400
Explain the Gamestop incident
A bunch of small investors on Reddit started buying shares of GameStop from it to go bankrupt. GameStop's stock price rose from $20 to $500 in just a couple of weeks and the hedge funds who bet on GameStop's downfall would lose a lot of money.
400
What is ML
An algorithm that reviews huge amounts of data for one stock and predicts if the stock price will rise or fall.
400
A stock has an EPS of 28.88 and a P/E Ratio of 13.23, explain what this means
BONUS: Find the stock price
EPS: The company earns $28.88 in profit for every stock sold
P/E Ratio: How much investors are willing to pay for $1 in profit of the companies earnings
BONUS: $382.01
500
Name two limitations of GDP as a measure of how good an economy is doing. (i.e. Name two ways GDP is an inaccurate economic indicator.)
Excludes non-market transactions (like unpaid work, any black market trade), doesn't account for income inequality, doesn't account for negative externalities like pollution
500
What macroeconomic concept does the long run Phillips Curve represent?
Natural rate of unemployment (the unemployment rate that exists when an economy is producing the full employment output, and when there is no recession or expansion. This is NOT 0%!)
500
What was Trumps ORIGINAL plan on tariffs
1. 10% tariff on all countries
2. A higher individualized tariff for countries that the U.S. has a large trade deficit with
500
What are 2 of the 5 ways credit score is calculated
1. Payment History
2. Total Debt
3. Length of Credit History
4. New Credit History
5. Types of Credit Cards Used
500
What is the difference between Limit and Stop Order
Limit order is when you buy a stock only if it hits the price you want it to while stop order is when you sell a stock at a set price