MICRO
As price falls, quantity demanded rises, ceteris paribus. This is the law of...
demand
What does GDP stand for?
Gross domestic product
A market with a single seller and no close substitutes.
Monopoly
Loss of economic efficiency due to taxes or market distortions.
welfare loss
Name the economist known for the “invisible hand.”
Adam Smith.
The next best alternative foregone when making a choice.
opportunity cost
A general increase in the price level over time.
inflation
Many sellers, identical products, easy entry and exit.
Perfect competition
What does the government collect to fund services?
Taxes
What movie features the 2008 financial crisis?
The Big Short.
The limited nature of society’s resources given unlimited wants.
scarcity
A period when the economy shrinks or grows very slowly.
Recession
Few firms dominate, high barriers to entry, interdependent pricing.
oligopoly
What is a public good?
A good everyone can use, like clean air or national defense.
What country uses the Yen as currency?
Japan.
A measure of how quantity demanded responds to price changes.
price elasticity of demand
The cost of borrowing money.
interest rate
Many sellers with differentiated products.
monopolistic competition
What happens if the government spends more than it earns?
It runs a deficit (or debt increases).
A decentralized digital currency.
What is Bitcoin?
What causes a surplus?
When quantity supplied exceeds quantity demanded at a given price.
What does the term 'stagflation' mean?
When inflation is high but economic growth is slow and unemployment is high.
Example of a natural monopoly?
Utilities like water or electricity providers.
Explain subsidy impact on markets.
Lowers production costs, increases supply, reduces price.
Who wrote “The Wealth of Nations”?
Adam smith