Economic Problems
Unlimited wants and limited needs; this is the basic economic problem.
What is scarcity?
Sometimes you die for progress. This term describes a good used to make another good.
What is an intermediate good?
The government first tried to break 'trust' in monopolies with the passage of this act.
What is the Sherman Anti-Trust Act?
Paper bills and coins; this is a medium of exchange and the most physical representation of money.
What is currency?
Considered the father of both economics and capitalism, this Scottish economist penned An Inquiry into the Nature and Causes of the Wealth of Nations.
Who is Adam Smith?
This term describes how purchasing power eventually declines over time.
What is inflation?
A measure of the value of all the final goods and services produced in a nation.
What is the Gross Domestic Product?
Legislators and colleagues roll over votes from time to time; this term describes it.
What is logrolling?
This is what we call an item which can be used to purchase goods and/or services.
What is a medium of exchange?
Macroeconomics and models; this British economist wrote The General Theory of Employment, Interest, and Money.
Who is John Maynard Keynes?
When you chose one thing over another, you pay for it; this is term describes cost of making choices.
What is an opportunity cost?
This term describes equipment; the machines and factories which increase labor productivity.
What is capital equipment?
People are greedy; this happens when actors seek to steer economic rent to only one set of people.
What is rent seeking?
This term describes when an item with no intrinsic value is used as money.
What is fiat money?
This economist was consulted during the Great Depression by Franklin D. Roosevelt and went on to won the Nobel Prize.
Who is Simon Kuznets?
This term arises when the actions of one person affect another and they both go unpaid.
What is an externality?
Economists use this to describe the knowledge/techniques used to make goods and services.
What is technological knowledge?
This term refers to when elected officials barrel money towards their communities for the benefit of one group.
What is Pork Barrel politics?
This term describes what happens when people want their money and withdraw it all from the bank.
What is a bank run?
With a distaste for the Irish and a desire to tax, this English economist/scientist made the first attempt at the GDP.
Who is William Petty?
This phenomenon occurs when individuals neglect the good of society for their own personal gain.
What is the Tragedy of the Commons?
Freddy is just quit his job and is looking for another. This term describes the type of unemployed he is.
What is frictional unemployment?
This is a strategy where identical goods are priced at different unjust rates to maximize profits.
What is price discrimination?
Formed by the the Banking Act of 1933, this organization controls the money supply.
What is the Federal Open Market Committee?
Surprise, surprise, another Englishman. This English inventor discovered how to efficiently make steel by blasting it with air.
Who is Henry Bessemer?