Fundamentals of Economics
What is the term for resources that are limited in supply and cannot meet all human wants?
A market with only one seller and no close substitutes for the product is known as this.
This measure indicates the amount by which government expenditures exceed government revenue in a given period.
This term refers to a cost or benefit incurred by a third party who did not agree to it, often leading to market failure.
This British economist's theories, presented in his 1936 book "The General Theory of Employment, Interest, and Money," revolutionized macroeconomic thought and policy.
What are the four types of economic systems discussed in class?
This term describes a situation where the quantity supplied exceeds the quantity demanded at the current price.
The 3 economic indicators we discussed in class that measure the "health" of the economy
What is GDP, inflation, and unemployment?
This term refers to a market structure where many firms sell products that are similar but not identical.
This term describes a situation in which the quantity demanded exceeds the quantity supplied at the current price
What is a shortage?
This term describes the highest-valued alternative that must be given up to engage in an activity
What is opportunity cost?
This term describes the additional satisfaction or utility gained from consuming one more unit of a good.
What is it called when the government uses taxes and spending to boost economic activity?
Who is in charge of this specifically?
Fiscal policy
President/congress
This type of good is one for which demand increases as consumer income rises
What is a normal good?
How would the government use Open Market Operations to increase the money supply?
Would the government use this when the economy is doing well or poorly?
The government would BUY BONDS to make the money supply BIGGER.
When the economy is doing poorly- EXPANSIONARY monetary policy.
If an economy is operating inside its PPF, it indicates this type of resource use.
What happens to the demand for hot dogs if income levels drop?
Demand increases!
Hot dogs are inferior goods which are bought MORE as incomes drop
When a county can produce a product at a lower opportunity cost than another.
What is comparative advantage?
The profit maximizing equation for a business based on marginal analysis
What is MR=MC?
This term describes the additional benefit received from consuming one more unit of a good or service.
This Model is shows how households and businesses interact in the product and factor market:
The circular flow model
Name the 5 shifters of demand
What are 1. number of consumers, 2. consumer income, 3. consumer substitute goods, 4. consumer expectations, 5. consumer tastes and preferences?
This term describes a situation where the overall demand for goods and services in an economy exceeds the economy's capacity to produce them.
The three antitrust laws learned in class
What is the Sherman Antitrust Act, The Federal Trade Commission Act, and the Clayton Antitrust Act?
Mr. Carson's favorite tennis player
Who is Novak Djokovic?