Econ Basics
What is scarcity?
Definition: The limited nature of society’s resources.
What is GDP?
What is GDP per Capita?
The total sum of all that is produced in a country in a given year.
GDP per Capita is GDP divided by population
What is opportunity cost
The next best alternative given up when a decision is made.
What is the European Union?
What is it's purpose?
A political and economic union of European countries that promotes trade, mobility, and a single market.
What effect does scarcity have on individuals and society?
Forces individuals and societies to make choices about how to allocate resources.
What are the 3 factors of production
What is the 4th factor
Land Labor Capital
Entrepreneur
What is Human Capital?
Knowledge education experience
What is a tariff and who pays for them?
A tariff is a tax on imports paid by the importing country.
Describe Adam Smith's division of labor from early to modern economic theory.
Honorable Judge Cline will weigh your answers and determine your worthiness.
What is a need vs a want?
Needs: Essential for survival (food, shelter, water).
Wants: Things we desire but don’t need for survival.
How do they control inflation?
The Federal Reserve. Jerome Powell.
Controlling interest rates.
What is an incentive?
Give examples of two types of incentive.
A reward or punishment that motivates people to act in a certain way.
Examples: Positive incentive: Bonus for hard work
Negative incentive: Fine for breaking the law
Describe a surplus
Describe a shortage
what is left over after the cost of doing business. Profits
Shortage is when there is not enough to satisfy demand.
How do we measure Inflation?
CPI
Consumer Price Index
What is a capital good?
Definition: A good used to produce other goods and services (e.g., machinery, tools).
Describe how profit motive is essential to the economy.
Describe how profit motive is essential to the economy.
what are property rights?
Why are property rights important to a society?
The right of individuals to own and control their possessions.
Encourages people to invest and take care of their resources.
Protects freedom and supports economic growth.
Foundation of a market economy—people are more productive when they benefit from what they own.
Name a trade agreement that exists between nations
OPEC, NAFTA.
BONUS: who can estimate the closest to the 2023 USA GDP without going over.
27.72 trillion
What are the 3 basic questions that all economies and societies must answer?
What is the difference between Capitalism and Communism?
Capitalism -An economic system based on private ownership of resources and profit-driven markets. Features: Competition, free markets, limited government intervention.
Communism-A political and economic ideology advocating for classless society where all property is publicly owned.
Why did you lose the family farm after World War 1?
This is Depressing
Name the top 3 highest GDP countries as of most recent data.
USA
China
Germany