study of people, choices, and scarcity...
how PEOPLE, make CHOICES, with LIMITED RESOURCES to meet UNLIMITED WANTS.
100
The idea to encourage people to take a certain action is an:
INCENTIVE
100
When a change in price, up or down, leads to little or no change in quantity, this is called:
INELASTIC
100
The founder of modern economics is...
ADAM SMITH
100
Contractionary monetary policy items, designed to reduce the amount of money in circulation, is nicknamed:
Tight-Money Policy
200
The cost of using one more unit of a good or service is:
Marginal Cost
200
Non-discretionary fiscal policy, actions that happen to balance out the economy, regardless of whether the government votes on it or not, are referred to as:
Automatic Stabilizers
200
Mikhail Gorbachev was the creator of this idea, which transitioned command ideas into a capitalist market:
PERESTROIKA
200
The total GDP in relation to the current population of a given country is referred to as?
Real GDP per capita
200
What's the difference between absolute advantage and comparative advantage?
absolute is who can produce the most (higher quantity) and comparative is who has the lowest opportunity cost (cheapest to produce and specialize). (you should know how to calculate!)
300
Fiscal Policy involves the use of WHAT TWO THINGS?
Government Spending & Taxation
300
What is considered the MOST USED TOOL of the Federal Reserve?
Open Market Operations (buying/selling bonds)
300
The basic set of support systems, such as power, communications, transportation, water, sanitation, etc. needed to keep an economy and society going is called
INFRASTRUCTURE
300
What is the wage-price spiral?
a cycle in which increased wages lead to higher production costs, and so on
300
The interest rate The Fed (Federal Reserve) charges when it loans money to other banks is called the
DISCOUNT RATE
400
A price floor will likely result in a _________ while a price ceiling will likely result in a __________.
SURPLUS ; SHORTAGE
400
The value of the next best alternative, or what you give up by choosing one alternative over another:
OPPORTUNITY COST
400
In the 1970s, periods of high inflation and high unemployment wrecked the US economy. This was due to an oil crisis that occurred overseas and trickled back to the US markets. This resulted in a unique crisis called:
STAGFLATION
400
Microeconomics is the study of the behavior of ____________ in an economy while Macroeconomics is the study of the behavior of ______________ in the economy.
individuals ; everyone
400
Legal maximum price that sellers may charge for a product is called a ...
Price Floor
500
Draw a PPC on the board with three points.
Point A as efficient.
Point B as inefficient.
Point C as unattainable.
WHO KNOWS?!?
500
What are the THREE big types of unemployment we have discussed this year AND what does each mean?
FRICTIONAL (in between jobs), STRUCTURAL (loss of job skills), CYCLICAL (due to a recession)
500
Draw a Supply & Demand Graph, illustrating a price floor.
WHO KNOWS!?!
500
What are the TWO main types of capital AND describe each.
HUMAN (training, education, knowledge) & PHYSICAL (tools, factories, etc).