It's Elastic, boogie woogie
Price elasticity of supply is mainly determined by _________, ____________, and _____________.
What are "availability of stocks, productive capacity, and time to produce"?
In order to be effective, a maximum price should be set __________ market equilibrium.
What is "below"?
People have unlimited wanted wants yet limited resources. This leads to the problem of scarcity where there may not be enough to satisfy everyones wants.
Thus, people are forced to decide what to produce, for whom, and how.
What is "the basic economic problem"?
A public good is both ____________ and ___________.
What is non-excludable and non-rival?
Most governments have an _________ target of ____________.
What is inflation and 1 to 3%? (2% is the most common)
Necessities are like to have a high income elasticity of demand.
What is false?
In a closed economy, the price of imported raw materials would cause market equilibrium price to ___________ and equilibrium quantity to _____________.
What is remain the same/ have no effect?
____________ are additions to the circular flow of income, while ____________ are withdrawals from the circular flow.
What are injections and leakages?
A decrease in specific taxes on necessities will most likely ___________ an economy's Gini coefficient.
What is a decrease?....making income distribution more equal.
In year 2 a country had a CPI of 110.
In year 3 it was 121. What was the rate of inflation from year 2 to year 3
What is (121 - 110)/110?
10%
In China, Natural gas has a price elasticity of demand that is _______________, an income elasticity of demand that is ________________, and a cross-elasticity of demand with respect to coal that is _________.
What are elastic, inelastic, and inelastic?
A shift in the Aggregate Demand curve will lead to a ___________ in Aggregate Supply.
What is a contraction or an extension?
Term to describe consumer expenditure exceeding income.
What is "dissaving"?
Housing allowances, Food vouchers, and unemployment benefits are examples of .........
What are transfer payments?
Most Supply-Side policies are also Fiscal policies. However, this may not be.
Answers may vary...i.e. regulations and minimum wage.
An increase in a country's net exports, government spending, investment, and consumption will always lead to inflation.
What is false?
Bonus: when will it and when will it not?
Cinema tickets and popcorn have a cross elasticity of demand of 1.4 . Thus a 10% decrease in the price of cinema tickets would cause an ________ in the demand for popcorn.
What is a 14% increase?
Both, ______________ and _____________, are used to influence aggregate demand.
What are Fiscal and Monetary Policy?
Governments often increase spending on public goods and services such as infrastructure and education as a part of _______________ fiscal policy.
What is expansionary?
Spending on infrastructure is _____________ while spending on education is usually considered ___________.
What is capital government spending and current government spending.
Bonus: These will always cause inflation. (T/F)
These are the 3 most important factors that influence the price elasticity of demand for a good or service. _____________, ______________, _____________
What are time period under consideration, availability of substitutes, percentage of income taken.....(other answers are acceptable ie. necessity vs luxury)?
Other than price, this determinant of demand is the most important for an agricultural good
What is (whatever the class votes upon)?
Keynesians believe that prices can be __________. Thus without _______________ the economy could suffer a long period of _____________ before returning to the _______________ level of output.
What are 1. sticky, 2. government intervention, 3. recession, and 4. full employment?
Sometimes, in planned economy's or developing countries, _________________ are sacrificed in the short run in order to experience _________________ in the long run.
What are 1. living standards and 2. economic growth?
Bonus: show on a PPC
In a __________ sector economy, I + G + X should be equal to ______________
What are "four" and S + T + M?