ECON INTRO
Economics
What is the study of how people satisfy their unlimited wants/needs with limited resources?
Durable good
What is a good that lasts longer than 3 years?
Law of demand
What is when the price of a product goes up, the quantity demanded goes down?
Recession
What is it when a contraction lasts at least 6 months?
Need vs want
What is something necessary for survival vs something unnecessary to survive?
Scarcity vs shortage
What is the complete end of a resource vs a temporary absence of a good, can be fixed?
Warranty
What is a promise made by manufacturers to replace a faulty product?
Equilibrium price
What is where QD=QS? (AKA: where supply line intersects demand curve)
What are tariffs, quotas, and embargos?
GDP formula
What is consumer goods + business investments + government spending + net exports.
C+I+G+(X-M) = GDP
Father of Economics
Definition of consumerism
What is a movement to educate buyers about their purchases?
Surplus vs shortage
QS>QD vs QS<QD
Phases of the business cycle
What are the peak, contraction, trough, and expansion/recovery?
Disposable income vs discretionary income
What is money you have after taxes vs money you have left after all bills have been paid?
What are traditional, command, and market economies?
Examples vary
The principal vs the interest
What is the initial loan amount vs the additional fee for borrowing said money?
Determinants of supply
What are number of firms, input, technology, taxes/random event?
4 things not counted in GDP
What are land, labor, capital, entrepreneurship? Examples vary.
3 things credit bureaus look for
What are... character, ability to pay, collateral, and payment history?
Determinants of demand
What are population, income, complimentary goods, substitute goods, and fads/trends?
4 types of unemployment with examples
What are frictional, structural, seasonal, and cyclical unemployment?
Examples vary
Kitten Mittons explained
yarn, etc = land
work people do = labor
scissors, crochet needles, etc = capital
Charlie's idea = entrepreneurship