Scarcity & Choices
This is the limits to what a consumer and afford given income and prices.
What is the Budget Constraint?
This happens when quantity demanded = quantity supplied.
What is market equilibrium?
This supplies labor in labor markets (Circular Flow Diagram).
What are households?
This is GDP measured in current prices.
What is nominal GDP?
This is the term for the long term increase in a country's productive capacity.
What is Economic Growth?
This is a graph showing the Trade-offs between two goods given resources and technology.
What is a Production Possibilities Frontier (PPF)?
Changes in income, tastes, related goods, expectations, or number of buyers.
What causes a shift in the demand curve?
This is the term when the labor wage is set above equilibrium, and a surplus occurred.
What is Unemployment?
This is the total GDP if Consumption = 500, Investments = 150, Government Expenditures = 200, Exports = 100, and Imports = 150
What is 800?
This is the three main types of unemployment.
What is Frictional, Structural, and Cyclical Unemployment?
This is the economic problem all societies face. It is why the study of Economics exists.
What is the Scarcity of resources?
A price floor of $15 is set above equilibrium of $12. With Qs = 140 and QD = 100, this created a surplus of this amount of units.
What is 40 units?
This is the price of borrowing money.
What is the interest rate?
This is the inflation rate when Base Year CPI = 100 and this year's CPI = 138?
What is 38%
This is the term for the output per worker (or per hour).
What is labor productivity?
This comes from a worker who can make 10 loaves or 5 cakes in a day. This is the opportunity cost of 1 cake.
What is 2 loaves of bread?
Focusing on the supply and demand of dogs, due to a lot of market insecurities, the number of pet shelters have decreased. At the same time, there was a medical study that shows that being around cats (substitute) can help reduce the chance of skin cancer. The equilibrium price has moved in this direction.
What is Up?
This is the market where savings and investment funds are exchanged.
These are the two ways to measure GDP.
What is expenditure and income?
This is the term for a phenomenon that Poor nations are growing faster than rich ones and catching up over time.
What is Economic Convergence?
This is what causes the PPF to "bow" outward. It is why the PPF is not a straight line.
What is increased opportunity costs?
Supply has increased and demand has decreased. Although one is certain, but the other is not known without actual numbers. This is the one that is unsure.
What is equilibrium quantity?
A bond pays $50 annual interest and sells for $1000. This is its yield.
5%
This country has a higher GDP per Capita when shown the following numbers: Country A GDP = $6 Trillion for 300 million people and Country B GDP = $2 Trillion for 80 million people.
What is Country B? (A: $20,000, B: $25,000)
This is the unemployment rate when the labor force is 80% of the adult population (Adult Population = 125 million) and the unemployed is 6.5 million.
What is 6.5%?