What is Econ?
Land, Labor, Human Capital, Physical Capital
What are the four factors of production?
What to produce, how to produce it, and for whom will it be produced
What are the three economic questions?
Price increase = QD decreases
Price decrease = QD increases
What is the Law of Demand?
Promote economic security
What is a role of the government in the US economy?
Scarcity
What is having limited resources and unlimited wants?
Efficiency, Freedom, Security, Equity, Growth
What are the 5 main economic goals?
When the QD moves along the curve
What is a change in price TODAY?
Portability, Stability, Uniformity
What are three characteristics of money?
(out of 6)
An item's demand not being very reactive to price changes
What is inelastic demand?
Point of Inefficiency
What is the point on the PPF curve that doesn't allow for maximum economic output?
Con: wealth gap
What is a con to the market economic system?
Time.
For the general defense/welfare, Same federal tax in all states
What are the limits on Congress' power to tax?
Surplus (caused by...)
What is a price floor?
Choice, Opportunity Cost, Trade-offs
What are the results of a person's decision-making?
Pro: everyone is on a "level" playing field
What is a pro of a command economic system?
Subsidies and excise taxes
What are ways the government can affect the supply curve?
Market value of all final goods/services produced annually by American residents, regardless of their geographical location at the time of sale
What is Gross National Product (GNP)?
Represented by a gradual curve on a graph
What is elastic supply or elastic demand?
Example: Idea for a product
What is Human Capital?
Forces: Self-Interest and Competition
What are the regulating forces of the Invisible Hand?
QD = QS
What is market equilibrium?
When a person/nation can produce at a lower opportunity cost than a competitor
Actions of the Fed to influence GDP and inflation
What is fiscal policy?