Show:
Introductory Economics
Supply and Demand
Measuring the Economy
Fiscal/Monetary Policy
Foreign Exchange
100
an economic problem that arises people people have unlimited wants but resources are limited.
What is the definition of scarcity?
100
There is an inverse relationship between price and quantity demanded
What is the law of demand
100
GDP= C=Ig=G=Xn
What is the expenditure approach?
100
-MPC/MPS
What is the tax multiplier?
100
The value of one currency for the purpose of conversion to another
What is the definition of exchange rates?
200
A country’s ability to produce a particular good with a lower opportunity cost than another country.
What is comparative advantage?
200
There is a direct relationship between price and quantity supplied
What is the law of supply?
200
second hand sales non market transactions black market activity public transfer payments items not produced in the current year
What is not included when counting GDP?
200
-open market operations -reserve requirement -discount rate
What are the tools of monetary policy?
200
The currency will increase in value
What happens to a country's currency value when it is appreciated?
300
-always operating at full employment -always comparing two products -resources are fixed -technology is fixed
What are the four basic assumptions of PPF curves?
300
when supply meets demand
What is equilibrium?
300
Unmploymen/ Labor force X 100
What is the equation for the Unemployment rate?
300
1/RRR
What is the equation for the money multiplier?
300
-Inflation -Tastes and Preferences -Interest Rates -Income levels of an economy
What are the four shifters of the foreign exchange graphs?
400
a policy or attitude of letting things take their own course, without interfering.
What is laissez-faire?
400
As you continue to consume a given product, you will eventually get less additional utility (satisfaction) from each unit you consume.
What is the law of diminishing marginal utility?
400
Labor Force/ Total Population X 100
What is the equation for the Labor force participation rate?
400
the interest rate banks charge other banks
what is the federal funds rate?
400
the interest rate the Fed charges banks for borrowing money
What is the definition of discount rate?
500
-Trade makes people better off -scarcity forces tradeoffs -cost vs. benefits -thinking at the margin -incentives matter market coordinates trade -future consequences count
What are the seven principles of economics?
500
-always operating at full employment -always comparing two products -resources are fixed -technology is fixed
What are the 5 supply shifters?
500
Current Year spending/ Base year spending
What is the equation for the consumer price index?
500
Buy bonds, decrease discount rate, or decrese required reserve ratio
What are some options for bringing the economy back up to full employment if its current in a recession?
500
The currency is depreciated when the interest rates change
What happens to currency when interest rates are too low?