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Unit 1
Unit 2
Unit 3
Unit 4
Unit 5
100
When unlimited wants meets limited resources... this is?
SCARCITY
100
Three major goals of any given economy are?
1) Promote Economic Growth 2) Limit Unemployment 3) Keep Prices Stable (Limit Inflation)
100
MPC is = to...?
Change in consumption / Change in income
100
What is the money multiplier equation?
1 / RRR
100
Two types of "accounts" in the Balance of Payments system are?
Current Account & Financial/Capital Account
200
What are the two "markets" that are both in demand and supply at various times within the Circular Flow Model?
Product Market & Resource Market
200
What does a classical economic model of AS look like?
Straight line / vertical line.
200
What is the spending multiplier equation?
1 / MPS
200
Something that SERVES as money but has NO VALUE other than for the purpose of being used as money?
FIAT MONEY
200
Japan suffers a massive tsunami which wrecks most of its coastal cities. As a result, they receive humanitarian donations from multiple countries... what type of account does this fall under in the Balance of Payments system?
Current Account
300
In a Keynesian economic model, you could say that Aggregate Demand is described as __________ ___________.
"Perfectly Elastic"
300
The best way to measure a given country's standard of living is by looking at?
GDP per capita
300
What is the tax multiplier equation?
MPC / MPS
300
The ease with which an asset can be accessed and used as a medium of exchange is referred to as?
LIQUIDITY
300
If there is a Current Account deficit, there MUST be a...
Capital/Financial Account Surplus.
400
Mani-ville can produce 20 Hugs or 40 Punches and Grace-town can produce 20 Hugs or 100 punches. 1) Who has a comparative advantage in Punches? 2) Who has an absolute advantage in Punches? 3) Who has a comparative advantage in Hugs? 4) Who should import Hugs?
1) Grace 2) Grace 3) Mani 4) Grace
400
What are the three types of Unemployment AND describe each type?
Frictional (in-between jobs), Structural (loss of skills), Cyclical (poor economy).
400
Automatic stabilizers in an economy are an example of what SPECIFIC policy type?
Non-Discretionary Fiscal Policy
400
The equation to calculate the future time value of money is?
$X (1 + r)^n
400
What are the FOUR shifters of the Foreign Exchange Market?
Changes in Income Changes in Price Level Changes in Tastes Changes in Interest Rates (TIIPS?)
500
First person to go to the board and draw a fully labeled PPC graph showing the 1:1 relationship between Guns & Butter.
A correct PPC?
500
Draw and label three points showing a drop of unemployment from 8% (point A) to 3 % (point B) which is below the natural rate of 5% (point C) on BOTH a PPC & a Philips Curve (both fully labeled).
Well...good luck?
500
A correctly labeled AD-AS Model showing shifts when government spending increases at the same time as resource prices increases, with a listing below the graph of whether P & Q increase, decrease or are indeterminate.
P increases, Q indeterminate
500
First person to the board to draw a fully-labeled Loanable Funds graph at initial equilibrium with a SHIFT from equilibrium after the government increases deficit spending.
Maybe a correct graph? who know!?
500
First person to the board to draw fully labeled FOREX graph(s) showing the results of appreciation/depreciation between the US Dollar and the Euro after American tourists increase visits to the EU.
Maybe?