Economic Systems &
Market Structures
Market Structures
How high are the barriers to entry in perfect competition
Mining more lithium causes the supply curve to
Move out or shift out
The line that runs through the middle of the business cycle is called the _________ line.
Trend
Taxes on a cannabis is this type of tax
sin tax
What economic concept helps us determine the exchange rates between countries?
Supply & Demand
After the 1812 earthquake, Reel Foot lake was created in Tennessee. Bald eagles started nesting there which is a positive _____________
Externality
What happened to the price of home delivery during the pandemic and why?
Increased due to more demand
Describes an adult who has just graduated but has not begun working
Frictional unemployment
Social security and Medicare together is a payroll tax also known as
FICA
The U.S. has instituted a minimum 10% ________ on all other countries.
tariff
The reason there are no pure free markets is because there would be no
central government
If the price of a good is inelastic that means
people are not sensitive to price changes.
Consumer confidence, S&P 500 and CPI are key ________s.
LEIs or Leading Economic Indicators
The accumulation of all deficits (and surpluses)
The Debt
Who are the two largest trading partners with the U.S.?
Mexico and Canada
Name three economic goals
Economic Freedom
Economic Efficiency
Economic Equity
Economic Security
Economic Growth
Full Employment
Price Stability
When the marginal production of labor goes from increasing to decreasing, we say that we have hit the point of
diminishing returns
When the slowing economy leads to less purchasing which leads to more layoffs which leads to less purchasing which leads to layoffs, etc.
Vicious Cycle
The two primary principles of taxation?
Ability to Pay and Benefit Principles
Why might a country decide to "peg" their currency to the dollar?
Because their economy is unstable versus the U.S.
CFPB is a federal agency that stands for
Consumer Financial Protection Bureau
change in supply vs change in quantity supplied
Calculated as the labor force divided by the total working-age (15 to 64) population.
Labor Force Participation Rate
What accounts for 12% of all government spending?
The military
What is the term for areas like USMCA, ASEAN and the EU?
Trading Blocs or Free Trade Zones