What is Economics & Economics Systems
Free Market philosopher
Adam Smith
Percentage of business that are sole proprietorships
75%
When the selling price of a good increases, what typically happens to production of the same good
Production increases
Point at which buyers are purchasing exactly as much as sellers are producing
Equilibrium
When working properly, the unemployment rate is...
4-6%
physical capital
Interest rate bond issuer pays to bondholder
Coupon rate
The amount of money a company receives for selling its goods
total revenue
T/F
A wide variety of products is a condition for perfect competitionFalse - products are nearly identical in perfect competition markets
When a person has a job but they are overqualified for it...
underemployed
Why are all goods and services scarce?
Because all resources are scarce
-Resources needed for goods/services
Dow Jones Industrial Average consists of
30 stocks that represent market as a whole
When the demand for a good does fluctuate due to price
inelastic demand
Competition in which many companies sell similar but not identical products
Monopolistic competition
A used car is what type of good (durable/nondurable)
durable
Most important advantage of a free market
Encourages economic growth
Corporations have separate entity apart from owners and workers
A shift in the demand curve means...
A change in demand at every price
When wages are set above the equilibrium level by law, what happens to the amount of employees companies are hiring?
The decrease - saves company money
Calculation of GDP includes...
Value of all final goods and services produced in a country during a specific amount of time
Purpose of production possibilities graph
Shows alternative ways to use an economy's resources
Money invested in mutual funds is invested in
a variety of stocks and bonds
excise tax
Free
Free
Unemployment that occurs during a recession
cyclical unemployment