Basic Concepts
What is Economics?
What is the study of choice under conditions of scarcity?
The law of demand states that as price decreases, quantity demanded:
What is increases
In the circular flow, businesses provide: (in the product market)
What are goods and services
Property taxes are usually collected by:
What is local government
The business cycle phase with the lowest economic activity is:
What is the trough
A traditional economy is based on:
What are customs and beliefs?
An increase in supply causes the supply curve to:
What is shift right
A production schedule shows:
What is output at various input levels
The main source of federal revenue is:
What are income taxes
Business cycle phase with highest economic activity:
What is the peak
The law of increasing opportunity costs means:
What is opportunity cost rises as production increases?
A price floor creates:
What is surplus (excess supply, QS > QD)
A factory used to produce goods is an example of:
What is capital
Which amendment allowed income tax?
What is the Sixteenth Amendment
What is a recession:
What is a period of economic decline.
A recession is a period of significant decline in economic activity, typically lasting more than a few months. It's characterized by a contraction in various sectors, including GDP, employment, and industrial output. Essentially, a recession is a period of economic downturn.
The production possibilities frontier reflects:
What is the scarcity of resources, tradeoffs, resource allocation, efficiency, and the law of increasing opportunity cost.
A price ceiling is set: (Below or Above Equilibrium)
What is below equilibrium
Marginal cost is:
What is the cost of producing one more unit
A budget deficit occurs when:
What is government spending > revenue
Cyclical unemployment is caused by:
What is a recession.
Cyclical unemployment can also be caused by downturns in a business cycle in which demand for goods and services decreases over time.
The United States is what type of economy?
What is a Mixed economy
Market reaches equilibrium from above when:
What is there is excess supply and the market price falls
Total Revenue minus Total Cost equals:
What is profit
What is a progressive tax:
Is a tax that takes a larger percentage from high incomes? (example: Federal Income Tax)
Structural unemployment is due to:
Workers lacking necessary skills
Mismatch between the skills workers have and the skills demanded by employers. These shifts can be driven by various factors, including technological advancements, competition, globalization, and shifts in industry.