Unit 1
Define economics in your own words
Economics studies the making, selling, and buying of goods and services
What does the law of demand state?
As price increases, demand decreases (inverse relationship)
What are the stages of the business cycle
peak, trough, recession, expansion
What is fiscal policy
How the government interacts with the economy
What popular board game teaches players how to buy property, collect rent, and go bankrupt?
monopoly
What are the four factors of production?
land, labor, capital goods, and entrepreneurs
chips and salsa
name and explain 3 types of unemployment
frictional - in between jobs
structural - uneployed due to changes in supply/demand
cyclical - recession
seasonal - job only for one season
Technological - technology replaces job
During inflation, Congress should increase or decrease taxes
increase taxes to take money out of pockets
In “The Office,” what did Michael Scott famously declare after going broke?
"I declare "BANKRUPTCY"
What is opportunity cost?
The value of the next best alternative/what are you giving up?!
What is the difference between moving along the curve and shifting?
along = price change
shifting = anything that is not a price change
what happens when the fed buys or sells bonds
The fed sells bonds to take peoples money and the fed buys bonds to give people money
Name and describe the three different types of taxes
progressive - tax the rich
regressive - tax the poor more
proportional - everybody pays the same
What rapper’s stage name doubles as the U.S. slang term for money?
50 cent
Describe the difference between opportunity cost and per unti opportunity cost
per unit is the amount you are giving up when you make just one more of the other thing
What factors can shift the supply curve?
Change in input costs
Change in a complementary good
Change in a substitute good
Change in taxes
penalties/subsidies
How does the reserve ratio influence the economy
Whats the difference between gross wages and net pay?
gross = total
net = after taxes taken out
In which Pixar movie does a clownfish father worry about scarcity — of safety — after losing his son?
Finding Nemo
What does comparative advantage tell us?
Who should specialize in making a product
Define equilibrium, surplus, and shortage
equilibrium = the price where supply and demand meet to have no surplus or shortage
surplus = made too much
shortage = made too little
explain how inflation impacts GDP
it inflates it and makes it look bigger
define deduction, subsidy and loophole
deduction - amount taken out of taxes
subsidy - money given from the government
loophole - a legal workaround paying taxes (shifting profits to offshore accounts)
What real-world stock trading app made headlines in 2021 for the GameStop frenzy?
Robinhood