Show:
Introduction to Economics
Microeconomics
Macroeconomics
International Economics
Misc.
100
Define economic growth.
An increase in real GDP or an increase in the quantity of resources
100
What does the law of demand state?
When price increases, quantity demanded decreases and vice versa.
100

What does aggregate demand consist of?

Consumption, Investment, Government Spending, (Exports-Imports)

100
What are trading blocs?
Large free trade areas formed by tax, tariff, and trade agreements.
100
What is sustainable development?
When human needs and wants are met without damaging the environment/destroying resources, which would affect the future generations
200
What are the four factors of production and their corresponding factors of payment?
Land - rent Labor - wages Capital - interest Entrepreneurship - profit
200
What are the 2 types of goods that are an exception to the law of demand?
Veblen and Giffen goods
200
What is GDP vs. GNP?
GDP: total amount of goods and services produced by means of production which are domestically located in one years time. GNP: total amount of goods and services produced by means of production which are domestically owned in one years time.
200
What does NAFTA stand for?
North American Free Trade Agreement
200
Explain the poverty cycle.
Low income -> low consumption -> low savings -> low investment -> low income
300
What are the three questions that economics covers and what do they depend on?
What to produce - determined by needs and wants of people How to produce - depends on available resources and technology For whom - depends on how goods are distributed
300
Briefly describe what a perfect competition structure consists of. (mention 3 characteristics)
- many firms - none large enough to influence industry - everyone has perfect information about the products - produce homogenous products - no/few barriers of entrance/exit
300

State three sources of economic growth.

- increase in investment - innovation - sufficient and good infrastructure - abundance of resources - improvements in quality of workforce

300
What is ToT and its equation?
Terms of Trade: Index of export prices / index of import prices × 100
300
What is the HSI? (only state the words)
Human Suffering Index
400
What are the three types of markets?
Command economy Free market Mixed economy
400

What is a price ceiling and why is it used? 

When a government sets a price below the market price, (price maximum), often done on necessities to ensure they are more affordable for consumers (e.g. rent).

400

Define and graph inflationary gap


the sustained increase in average price level 

400
What are the three types of exchange rates? (don't just state the name)
Fixed exchange rate - exchange rates set by the government Floating exchange rate - determined by the market forces of demand and supply Managed exchange rate - floating exchange rate but controlled by the government
400
What are the 4 key components of Sustainable Human Development?
- productivity - equity - sustainability - empowerment
500
Name the economic sectors and what they involve.
Primary - extraction of resources: farming, fishing, forestry and mining Secondary - conversion of natural resources into goods: manufacturing and construction Tertiary - production of services: finance and tourism Quaternary - production of technology, information services, education
500

Name the different types of markets, from most controlled by the government to least. (hint: there are four)

Perfect competition, monopolistic competition, oligopoly, monopoly

500
What do the Laffer and Lorenz curve show?
Laffer - relationship between tax rate and revenue Lorenz - distribution of wealth in economy
500
State 2 arguments against protectionism.
- less choice for consumer - inefficiency of resource allocation - increased prices for consumer - no incentive for industries to compete
500
What is the IMF?
International Monetary Fund: A group of member countries whose focus is to help countries keep their currency stable and supervise government policies in countries they lend money to.