Main Economic Principles
The act of offering some kind of gain or benefit for doing something?
What is an incentive?
AAPL, AMZN, and LULU are the "these" for Apple, Amazon.com, and Lululemon Athletica Inc.
What are ticker symbols?
A system defined by a free market and little to no government intervention
What is capitalism?
Suppose I sell apples. Demand causes the price of my Fiji apples to increase. I make sure to order more Fiji apples to sell. This second part is an example of what key economic principle?
What is the Law of Supply?
Example: To keep food prices low, the government takes taxpayer money and gives it to farmers.
What is a subsidy?
The total GDP divided by the number of working-age people in a country.
What is GDP per capita?
The value of the next unit produced?
What is marginal benefit/cost.
Spreading your stock purchases across multiple industries and companies.
What is diversification?
A system where the government controls most key industries but does NOT have a dictator-style government.
What is socialism?
Everything is in limited supply, or "this." When there is not enough to meet demand, it can create "this" other thing as well.
What is scarcity and shortage?
Firms may not pay workers below this line, with some exceptions.
What is minimum wage?
The sum of a country's wealth in land, water, minerals, and farmland.
What are natural resources?
What you give up when you make a decision.
What is opportunity cost?
When many people want to buy a stock, the price goes up. This is an example of this key economic principle.
What is the Law of Demand?
A system where the government controls all industries and is usually controlled by a dictator.
What is communism?
This is a visual representation of opportunity cost.
What is a production possibilities frontier/curve/graph?
The government collects these from international trade.
What are tariffs?
Tools such as shovels, hammers, computers, machines, and robots.
What is physical capital?
Keeping track of and planning out past and future spending.
What is budgeting?
To gather the money needed to start a business, I sell shares or stocks in my future business. The money I'm raising is known as this.
What is capital?
Communism is an example of this type of economy.
What is a centrally planned economy?
When demand increases but a firm does not raise their price accordingly, supply and demand are said to be in this.
What is disequilibrium?
This government agency controls the money supply and works to regulate the economy.
What is the federal reserve?
Training and education that makes you more productive.
What is human capital?
Holding on to a certain amount of money and spending that money things you think will one day be worth more than you paid.
What is saving and investing?
To gather the money needed to start a business, I sell shares or stocks in my future business. I am now this name for people who take risks and start a business.
What is an entrepreneur?
Name one country for each of the following types of economies: Capitalist, Socialist, Communist.
What is answers my vary. Possible: United States, Denmark/ Sweden, DPRK/ Soviet Union
The price of a product does not change, but the population of consumers does. On a demand graph, this would cause a __________.
What is a shift?
This type of tax is included in the price of an item and you almost never see it.
What is an excise tax?
The amount of people in a country that are able to work.
What is labor?