Intro to Econ
Why does economics exist? What basic problem is it trying to solve?
How to satisfy our wants/needs.
What would happen to the supply of corn if a windstorm destroyed a farmer's field?
The supply would decrease
- More control
-100% of profits
How do banks make money?
Charging interest on loans.
Mr. Cole coaches 3 sports.
What are they?
Where does he coach them?
What level of the sport are they? (varsity, jv, etc)
Varsity Football at HFL
Modified Boys Basketball at HFL
Modified Girls Flag Football (TBD) - Previously Gananda
Name an example of a traditional economy.
- Eskimo Community
- Amish Community
- Indigenous Tribes
What is one way demand could change BESIDES price?
- Tastes change
- More/increased substitutes
- Technology changing
What makes a corporation different than a sole partnership BESIDES the amount of people running the company?
Corporations sell pieces of their company called stock to shareholders. These people have NO control of the company's operations, but will make/lose money depending on the company's success.
What does legal tender mean?
Currency that is accepted in an economy.
Example: I can spend USA dollars to buy gas but not monopoly money.
What high school did Mr.Cole attend and what year did he graduate?
Pittsford Mendon in 2019.
How is opportunity cost different from a trade off?
A trade off is an alternative choice, opportunity cost is the most VALUABLE alternative.
Example: You bought a hot dog and soda for $5
Trade off - Buying a cheeseburger for $5
Opp.Cost - The $5 you spent
What change will result in movement ON the supply or demand line?
A change in price.
Define predatory pricing. How do government's prevent this?
When a big business will undercut (sell for cheaper) their competition to knock them out of business. This is (mostly) prevented with price floors.
What is 1 way the Federal Reserve Controls the money supply (monetary policy)
Any of the following:
- Sells OMOs
- Change discount rate (amount banks pay back on loans)
- Change reserve requirement
Alright folks, here's the deal...
Define capital.
The non-natural materials that business use to produce their goods/services.
Example:
- Lights
- Delivery Vehicles
- Oven
- Warehouse
What is it called when the quantity demanded and the price demanded or not equal?
Disequilibrium.
What is one way that companies prevent unions BESIDES outright firing people?
- Anti-union propaganda
- Forcing some workers into bad positions so that they will either quit/fire them for bad performance
- Incentivize not unionizing (pay workers)
- Improve benefits/pay
What are the 4 characteristics of money?
Durable
Divisible
Limited Availability
Name all of the districts that Mr. Cole has taught/subbed in. There are 5!
Pittsford, Penfield, East Irondequoit, Gananda, HF-L
Define real cost. What does it include?
The total cost of producing a good/service. It factors in land, labor, and capital.
Example:
A sock company is selling socks for $2 a pair. They open up a new factor and can now produce socks twice as fast. What change will occur to the supply and demand graph?
The supply line will shift to the right, as the company can increase production without having to charge more.
Define collective bargaining.
When labor unions and the business they work for come together to try and make a new contract that agrees on pay/benefits for the workers.
How does money from the federal reserve reach your pocket?
The FED loans money to the 12 member banks. The member banks then loan money to the local banks in their region. The small, regional banks then loan money to people who have an account/loan with that bank.
Who was Mr.Cole's number 1 artist on spotify wrapped? (Yes, I did tell you this)
Daily Double if you can name the top song!
Metallica - Blackened