Show:
Concepts
Micro
Macro
International Trade
Miscellaneous
100
Economics is...
study of people, choices, and scarcity... how PEOPLE, make CHOICES, with LIMITED RESOURCES to meet UNLIMITED WANTS.
100
What are the FOUR FACTORS of Production?
Land, Labor, Capital, Entrepreneurship
100
What is considered the MOST USED TOOL of the Federal Reserve?
Open Market Operations (buying/selling bonds)
100

What is a quota?

restrictions on the quantity of a good that can enter a country

100
The founder of modern economics is...
ADAM SMITH
200
The cost of using one more unit of a good or service is:
Marginal Cost
200
Legal maximum price that sellers may charge for a product is called a ...
Price Floor
200
Fiscal Policy involves the use of WHAT TWO THINGS?
Government Spending & Taxation
200

Sometimes a country will place a tax on certain products being imported to their country. What is this called?

tariff

200
The basic set of support systems, such as power, communications, transportation, water, sanitation, etc. needed to keep an economy and society going is called
INFRASTRUCTURE
300
The value of the next best alternative, or what you give up by choosing one alternative over another:
OPPORTUNITY COST
300
When a change in price, up or down, leads to little or no change in quantity, this is called:
INELASTIC
300
Contractionary monetary policy items, designed to reduce the amount of money in circulation, is nicknamed:
Tight-Money Policy
300

What is an embargo?

total ban on the import of a good from a particular country

300
The interest rate The Fed (Federal Reserve) charges when it loans money to other banks is called the
DISCOUNT RATE
400
The idea to encourage people to take a certain action is an:
INCENTIVE
400
A price floor will likely result in a _________ while a price ceiling will likely result in a __________.
SURPLUS ; SHORTAGE
400
In the 1970s, periods of high inflation and high unemployment wrecked the US economy. This was due to an oil crisis that occurred overseas and trickled back to the US markets. This resulted in a unique crisis called:
STAGFLATION
400

What does the law of comparative advantage state?

Countries should produce the goods they are most efficient at producing and purchase the rest from other countries.

400
What are the TWO main types of capital AND describe each.
HUMAN (training, education, knowledge) & PHYSICAL (tools, factories, etc).
500
Draw a PPC on the board with three points. Point A as efficient. Point B as inefficient. Point C as unattainable.
WHO KNOWS?!?
500

Draw a Supply & Demand Graph, illustrating a price floor.

WHO KNOWS!?!

500
What are the THREE big types of unemployment we have discussed this year AND what does each mean?
FRICTIONAL (in between jobs), STRUCTURAL (loss of job skills), CYCLICAL (due to a recession)
500
What's the difference between absolute advantage and comparative advantage?
absolute is who can produce the most (higher quantity) and comparative is who has the lowest opportunity cost (cheapest to produce and specialize). (you should know how to calculate!)
500
Non-discretionary fiscal policy, actions that happen to balance out the economy, regardless of whether the government votes on it or not, are referred to as:
Automatic Stabilizers