Fundamental Econ
What is opportunity cost?
the most desirable alternative given up as the result of making a decision.
What are the 3 main types of businesses?
Sole proprietorship, partnership, corporation/franchise.
What is an example of a price floor?
Minimum wage.
What is an embargo?
Completely cutting off trade with another country.
Which planet in our solar system is the only one to rotate colckwise?
Venus
List 2 ways a business can increase productivity.
New technology, specialization, investing in more capital, investing in better benefits for employees, etc.
If the cost of materials changes, will that effect supply of demand?
Supply
Why doesn't the government print more money when the country is in a budget deficit?
Printing too much money causes inflation.
Name one characteristic of a developing country?
High poverty, low GDP, low income, high unemployment, low education, etc.
Which country is the furthest away from the U.S.
Australia
What are the 4 factors of production?
Land, labor, capital, entrepreneurship.
What is the law of demand?
As the prices of a good increase the demand will decrease, and if the price of a good decreases the demand will increase.
What is a proportional tax?
A tax that is the same rate for everyone.
List 3 countries that are considered developed by the UN.
U.S., Canada, Japan, UK, France, Japan, Australia, Italy, Switzerland, etc.
Which constellation represents a crab?
Cancer
What is the difference between a command and a free market economy.
Command: economy is regulated by the government
Free market: no government interference in the government.
Which type of business is the hardest to start?
Corporation
What are the 4 stages of the business cycle?
Peak, contraction, trough, expansion.
Explain how a tariff can lower the trade deficit?
Tariffs make foreign products more expensive, which will encourage consumers to buy products made within the country. Then the country can save money by not having to spend as much on imported goods.
What is it called when a bowler gets 3 strikes in a row?
Turkey
Identify one country or region in the world where a traditional economy is practiced.
Parts of Brazil, the Amish, parts of Africa, indigenous groups in the arctic.
Give one example of something that would cause a demand curve to shift to the left.
Price increase, better options elsewhere, poor quality.
What are the 3 functions of the Federal Reserve System?
Bank for the government, supplies money to smaller banks, regulates cash flow within the country.
Identify a political reason why a country might be struggling to develop.
War, changes in government leadership, genocide.
What is the least popular month to be born in?
February