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Introductory Economics
Supply and Demand
Measuring the Economy
Fiscal and Monetary Policy
Mix of Categories
100
the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources
What is scarcity?
100
the amount of a product that producers and firms are willing to sell at a given price when all other factors are being held constant
What is the definition of supply?
100
the total quantity of goods and services produced within a country's borders in a given period of time
What is the definition of gross domestic product?
100
The government shouldn't do anything because the economy will fix itself
What is classical economics?
100
Unemployment ____________________ = Unemployment rate Employed+ Unemployed
How is the unemployment rate calculated?
200
the loss of potential gain from other alternatives when one alternative is chosen
What is opportunity cost?
200
all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa
What is the law of supply?
200
1. consumption 2. investment 3. government spending 4. net exports (exports - imports)
What is included GDP ( Gross Domestic Product)?
200
The total demand for final goods and services in an economy at a given time. It specifies the amount of goods and services that will be purchased at all possible price levels.
What is aggregate demand?
200
1. Structural 2. Frictional 3. Cyclical 4. Seasonal 5.
What are the types of unemployment?
300
the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group
What is absolute advantage?
300
1. price of resources 2. number of producers 3. technology 4. taxes and subsidies 5. expectations
What are the supply shifters?
300
1. second hand sales 2. non market transactions 3. illegal activity 4. items not produced in current year 5. public transfer payments 6. private transfer payments 7. stocks and bonds
What are examples of excluded GDP (Gross Domestic Product)?
300
1. Expectations for demand 2. Income effect 3. Monetary and Fiscal Policies 4. Exchange rates 5. Law of diminishing Marginal Utility
What are the aggregate demand shifters?
300
a combination of frictional and structural unemployment that persists in an efficient, expanding economy when labor and resource markets are in equilibrium
What is the natural rate of unemployment?
400
an economic law that demonstrates the ways in which protectionism is unnecessary in free trade
What is comparative advantage?
400
1. Tastes/ preferences 2. number of consumers 3. price of related goods 4. Income 5. Expectations
What are the demand shifters?
400
Real GDP is a macroeconomic measure of the value of economic output adjusted for price change. Nominal GDP is GDP evaluated at current market prices. It includes all of the changes in market prices that have occurred during the current year due to inflation or deflation.
What is the difference between real GDP and nominal GDP?
400
the government intervenes to improve the economy when it is depressed.
What is keynesian economics?
400
Automatic: anything that increases the government budget deficit during a recession and increases its surplus during an expansion without requiring specific action from policy makers.
What are automatic stabilizers?
500
Land Labor Capital Entrepreneurship
What are the factors of production?
500
a much of how much the quantity demanded will change if another factor changes
What is demand elasticity?
500
A measure of the total output of a country that takes the gross domestic product and divides it by the number of people in the country. This shows the relative performance of different countries.
What is real GDP per capita'?
500
Expansionary: increase in government spending, a decrease in taxes or some combo of the 2 to increase aggregate demand Contractionary: decrease in government spending, increase in taxes or combo of the 2 to decrease AD and control inflation
What are Expansionary and Contractionary fiscal policy?
500
Discretionary: Deliberate changes in tax rates and government spending by congress to promote full employment, price stability and economic growth
What is discretionary fiscal policy?