Definitions
What is the term for a, "study of choices when there is scarcity?"
Economics
The value of an amount of money in terms of what it can buy
Real Value
A cost-benefit analysis would be used in which principle?
Opportunity Cost
A credit score that is subprime is below this number
300
If there were a natural disaster, what would happen to your country's production possibility curve?
It would shift inward/to the left.
What term is , "The resources we use to produce goods and services are limited."
Scarcity
What is the term for the face value amount of money?
Nominal Value
If a company wants to break into a "hot" market and sell the same thing as their competitors, what will happen to the demand for the product?
Drop/Go Down
Cargo ships rarely going at full speed to deliver goods due to the cost of fuel exceeding the gain of getting to port early is an example of which principle?
Marginal Principle
New minus old divided by old times 100 calculates what?
Percent Change
a change of one “unit” in a variable
Marginal Change
A curve showing the relationship between price and quantity supplied by all firms
Market Supply Curve
What is the monthly interest of a $15,000 loan at 10%?
$124.5
What factors influence the real-nominal principle? (Give at least 2)
Age, Location, Time-Period
What is the Latin word for "credit" and what does it mean in Latin?
Credere, belief
What you sacrifice to get something is known as what?
Opportunity Cost
The ability to obtain goods or services before payment.
Credit
During a recession, a dry cleaner lays off employees and reduces his hours because people are hand-washing their “dry clean only” items.
Cyclical
This hurts lenders who lend at fixed rates but benefits borrowers.
Unintended Inflation
Federal student loans are different than conventional student loans because they are based on _____, rather than ______
Need, Want
The principle of an exchange between two people makes both better off is known as what?
Voluntary Exchange
The actual balance of a loan
Principle
When concerned about inflation, a government might change taxes this way.
Increase Taxes
Legislation that changes the levels of taxation and/or government spending to stabilize the economy is this.
Fiscal Policy
C+I+G+(X-M) Calculates This
GDP