Supply and Demand
If the price of a good increases, what happens to the quantity demanded?
Decreases
What country holds the largest share of global manufacturing?
China
Demand Curve
The aggregate of each individual's demand in a market.
Who is the central planner in a command economy?
The government
Name the face on the $1 bill
George Washington
What is the point where supply and demand meet called?
The equilibrium point
Over the last 20 years, what has been the most traded good in the world?
Crude Oil or Finished Automobiles
Opportunity Cost
The the loss of potential gain from other alternatives when one alternative is chosen.
Who was the founding father of communist/socialist thought?
Karl Marx
Where is the United States Federal Reserve Headquarters located?
Washington D.C.
An increase in the price of bread would affect which curve in the sandwich market: supply or demand?
Supply
What are tariffs?
Taxes placed by a country on goods that are IMPORTED
Antitrust
Term used to describe laws or regulations designed to stop firms from exploiting their monopoly positions in markets at the expense of consumers or rival businesses.
What historical economic system does capitalism come from?
Mercantilism
What has historically been the Fed's ideal inflation rate?
2%
What would happen to the price of iphones if the price of a google pixel increases? Why?
Price will go up as demand curve will shift up. Since pixels are more expensive now, more people will want to buy iphones, raising the price of them as well.
What economic issue was the root cause of the Great Depression?
Overproduction with not enough consumption to meet it.
Current Account of a Country
This measures all the non-financial transactions between a country and the rest of the world—chiefly its imports and exports of goods and services—and transfers such as remittances and financial aid.
Explain Tragedy of the Commons and provide an example
The Tragedy of the Commons refers to a situation where the over-exploitation or destruction of a shared resource occurs because each individual has an incentive to maximize their own benefit without considering the long-term consequences for everyone involved.
Ex. Overgrazing, Groundwater depletion, Congestion on public roads, etc.
What was the AAA and what did it do for the American economy during the New Deal?
The Agricultural Adjustment Act helped farmers by raising the prices of crops and paying them for land not used. They did this by offering farmers subsidies in exchange for limiting production of certain crops.
Name at least 3 factors that affect supply
1. Technology
2. Input prices
3. Availability of resources
4. Expectations
5. Opportunity cost
How can a "weaker" currency stimulate a country's economy?
A weaker currency can attract foreign investment and development since it is cheaper to produce for them in the weak currency.
What does OECD stand for and what do they do?
The Organisation for Economic Co-operation and Development; collect economic information for developed countries
What is the invisible hand theory?
The invisible hand is a concept that was coined by economist Adam Smith to illustrate hidden economic forces. The invisible hand is a metaphor that describes the unseen forces of self-interest that impact the free market. In theory, consumers basing decisions on self-interest creates a positive outcome for the economy.
What was the gold to dollar pegged at during the Bretton-Woods conference in 1944?
$35 per ounce of gold