Basic Economic Concepts
Unlimited wants, but limited resources?
Scarcity
Law of Demand/Demand Curve
Rent, Insurance, Yearly salary are known as
Fixed costs
The value of goods sold within a calendar year.
GDP
Contractionary Fiscal Policy tries to solve
Inflation
Natural Resources that are used to produce a good
Land
The price of gas goes up, care sales decrease. These two are?
Compliments
The space between TC and VC
FC
What goes into GDP
C+I+G+Xn
Government Spending and Taxes are...
Discretionary Policy
People who take risks starting new companies and innovating ideas.
Entrepreneurship
The demand for Tesla's decreased when news comes out that the price will be cheaper 6 months from now.
Future Expectations
Due to variable costs, the more you produce, this continues to rise.
Marginal Cost
Real vs Nominal GDP
Nominal: PxQ Current year
Real: P (base year) x Q current year
When the government collects more taxed than it spends
Surplus
Brazil has a lower opportunity cost in producing coffee compared to the US. Brazil has...
Absolute Advantage
The sensitivity or insensitivity of demand is based on?
PED
The profit maximizing quantity
MC=MR
Unemployment due to poor economic conditions
Cyclical
Banks like Bank of China, Bank of America are...
Commercial Banks
Most economies around the world have this type of economic system
Mixed economy
The demand curve is vertical with a coefficient of 0
Perfectly inelastic
What happens when a firm makes a profit?
More firms will enter the market.
Unemployment Rate
# of unemployed/labor force x100
What happens to the money supply when the Fed sells bonds to commercial banks?
Decreases