Show:
Decision Making Econ
Supply and Demand
Gov. Revenue n' Spending
Economic Performance
International Trade
100
What is scarcity?
The lack of resources.
100
Define demand.
The desire, ability, and willingness to buy a product.
100
How do taxes impact the economy? Besides make one mad because you have to give someone you don't know your money.
Taxes and other governmental revues influence the economy by affecting resource allocation, consumer behavior, and the nation's productivity and growth.
100
How is the nations output measured?
Why with GDP of course.
100
What country uses the USD as it's countries form of currency?
The United States of America. If you got this question wrong... please try and stay out of the gene pool.
200
What's the difference between a need and want?
A need is a basic requirement for survival and includes food, clothing, and shelter. A want is a way of express a need in an exaggerated form.
200
Is the answer to this question no?
I'm kidding, you just got free points, try not to think too hard on that last question.
200
Name two types of taxes? Not tax programs, but types, don't be a smart a**.
Proportional tax, progressive tax, and regressive tax.
200
True or false: When there is low unemployment, inflation goes down.
False, for the economy to improve (more jobs), there has to be more money in circulation, which causes inflation. That's why a dollar today was worth more back in the day.
200
What are absolute and comparative advantige?
Absolute advantage is when a country can produce a product more efficiently than another country. Comparative advantage is a countries ability to produce a product relatively more efficiently, or at a lower opportunity cost.
300
What are the three basic questions one needs to ask before producing something?
What to produce, how to produce, and for whom to produce.
300
What is a marginal utility?
A marginal utility is the extra usefulness or satisfaction a person gets from acquiring or using one more unit of a product.
300
Why is the U, S, of A, in debt?
The wonderful country of America is sadly in debt because we have a billion more spending programs while we only have a couple, well technically one, revenue program. (and a billion was an exaggeration)
300
What are the three phases of the business cycle?
Recession, expansion, and depression.
300
What is a protective tarriff and a revenue tariff?
A protective tarriff is a tariff high enough to protect less-efficient domestic industries. A revenue tariff is a tariff high enough to generate revenue for the government without actually prohibiting imports.
400
What is the word that a service or good must have to be valuable?
For something to have value it must have utility.
400
What does unit elastic mean?
Unit elasticity means that a given change in price causes a proportional change in the quantity demanded. Meaning if the price goes up, people will want less.
400
What two kinds of things does the government spend its money?
Good/Services and transfer payments (a payment for which the government receives neither good nor service in return)
400
If you get this wrong, you lose 400 points. What are two kinds of unemployment?
Frictional, Structural, Cyclical, Seasonal, and Technological unemployment.
400
Explain the infant industries argument.
The infant industries argument is the belief that new or emerging industries should be protected from foreign competition.
500
Name three economic and social goals. Also define a trade off.
Economic Freedom, Economic Efficiency, Economic Equity, Economic Security, Full Employment, Price Stability, Economic Growth, and Future goals. A Trade off is a loss at making a decision. Say you can stay home and eat saving money but having bad food. Or one could go out and eat good food but spend their money.
500
How does one reach the profit-maximizing quantity of output?
The profit-maximizing quantity of output reached when marginal cost and marginal revenue are equal.
500
What is the public sector?
The public sector is the part of the economy made up of federal, state, and local governments.
500
What is a negative income tax?
The negative income tax is a proposed type of tax that would make cash payments to certain groups below the poverty line. So... pretty much welfare.
500
Explain how trade deficits correct themselves under flexible exchange rates.
Because the exchange rate is flexible, it can increase to make the value of the dollar higher or lower, correcting the trade deficit.