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Intro to Economics
Supply and Demand
Measuring the Economy
Fiscal and Monetary Policy
100
Define scarcity
What is unlimited desire with limited resources
100
Define supply and what the law of supply is
Supply is the goods and services provided by whom ever purchases that good or service. The law is that deman directly affects supply; when demand goes up, supply goes up. When demand goes down, guess what happens.
100
Define GDP and what is included and not included
What is the market value of all final goods in a year. Included: Consumption, investment, government spending, and net exports Excluded: Supply
100
Define classical and keynesian economics
What is classical being letting economics taking its own course and keynesian is making decisions based off of what has happened and a theory of what might happen next in the economy in order to bring it back to its full extent.
200
The similarities and differences between absolute and comparative advantage
What is absolute advantage being a country's ability to produce a certain good better than another country, and comparative advantage would be a country's ability to produce a good more efficiently than another country
200
The difference between GDP and GNP
What is Gross National Product which is anything made outside the particular country we are talking about. GDP is within the country.
300
What are the four basic assumptions of the productions possibilites curve
What is Two Goods: Resources are used to produce one or both of only two goods. This is a simplifying assumption that makes it easy to display production alternatives using graphs. More than two goods could be analyzed using advanced mathematics. Fixed Resources: The quantities of labor, capital, land, and entrepreneurship resources do not change. This is a reasonable assumption, but it can be relaxed to analyze the consequences of changes in these resources. Fixed Technology: The information and knowledge that society has about the production of goods and services is fixed. This is another reasonable assumption that can be relaxed to analyze the effects of technology changes. Technical Efficiency: Resources are used in a technically efficient way. That is, the maximum possible production is obtained from the resource inputs.
300
Define inflation and provide an example of who is helped and who is hurt
What is the worth of money being too high. An example would be if you take a loan out of a bank and inflation goes up after you already took out the loan, you would be saving money, and the bank would be losing money since you have a fixed rate of what you pay back.
400
the main difference between a capitalist and market economy
What is capitalist being governmental owned, and market being citizen controlled
500
The concepts from Adam Smith and Laissez-Faire
What is a non-governmental market with a statistical backup of why that is a fine system