Basic Economic Concepts
Supply and demand
Market Structures
Macro Economics
Macro Econ 2
100
This economic concept is the word for the gap between unlimited wants and limited resources
What is scarcity?
100
This is what happens when the price of a good or service increase
The quantity demanded goes down?
or the quantity supplied goes up?
100
a market with hundreds of competitors with slight differentiations in their products.
What is Monopolistic competition?
100
This is measure of all sales on final good within a given period, normally a year.
What is GDP or Gross Domestic Product.?
100
This form of unemployment is when a job is either outdated or permanently replaced
What is Structural Unemployment?
200
This economic concept explains the choices that must be made due to scarcity of time and resources.
What is a trade off?
200
This is the point at which suppliers and consumers agree about how much should be produced and at what price.
What is Equilibrium?
200
This market structure has 4 to 6 competitors controlling 60 percent of the market share
What is an Oligopoly?
200
Does a new barn on a farm count towards GDP. If it does what type of spending is it?
Yes it does because it is is I=Business Investment
200
This form of Unemployment is when a job is gone because of a downturn in the economy.
What is Cyclical Unemployment?
300
This is the economic thinker who predicted the eventual fall of capitalism due to its own contradictions, which would be followed Pure Communism.
Who is Carl Marx
300
this law expresses a inverse relationship between price and quantity demanded
What is the law of Demand?
300
These are factors that make it difficult for new firms to enter a market. An example of which is high start up cost
What is a Barrier to Entry?
300
What are the 4 things that get calculated into GDP?
C=Consumer Spending
I=Business Investment
G=Government Spending
X-M= Net Exports
300
Which two forms of Unemployment are not a part of the Natural Rate of Unemployment?
Frictional and Structural?
400
This economic concept brought to us by Adam Smith said that supply and demand could create quality goods at good prices without government intervention.
What is the Invisible Hand of the Market?
400
Government subsidies and taxes help shift what are an example of this economic concept?
Supply Shifter or positive and negative economic incentive?
400
This type of market has lower prices due to the most competition.
What is Perfect Competition?
400
How would find the Unemployment for this country?
Unemployed=200/Total Workforce=1000 divide
multiply result by 100 to get a percent.
answer 20%
400
Which organization makes it their goal to keep Full employment and stable prices
What is the Federal Reserve? or The FED?
500
Replacing the fryer at Jens job is a update in which factor of production.
Capital
500
If the price of milk goes up what happens to Cereal?
Double points if you can remember the name of the relationship being expressed.
The demand for cereal shifts to the left or goes down.
Bonus points: What is a complimentary relationship
500
These two market structures are considered Price Makers
Monopoly and Oligopoly
500
Which type of Inflation is caused by increases in cost of production that gets passed on to the consumer
Cost-Push Inflation
500
Which type of Inflation is caused by more money chasing the same amount of goods. In other words demand has increased but supply has stayed the same.
What is demand-Pull inflation?
600
Point F on this PPC represents what economic situation?
What is Impossible production?
600
If the quantity demanded is greater than the quality supplied then what has occurred in this market
What is shortage?
600
This type of company has limited liability due to the separation of ownership from management.
What is a corporation?
600
If John got a 10% percent raise this year but inflation was 6% then was johns real increased spending power for the year?
What is 4 percent?
600
Does Social Security count towards GDP, and if so what type of spending is it?
No and although it is government spending, social welfare programs do not count toward sales on final goods.