ECON 101
Define want vs. need
Want: something we desire but do not require in order to survive.
Need: something that we require to survive.
What are the four types of economic systems?
Traditional, Mixed, Command, Market
When Amazon first became a business, what did it sell?
Books
What is the law of demand?
As price increases, demand decrease
As price decreases, demand increases
What is another name for World War I?
The Great War
What is the difference between scarcity and shortage?
What determines the difference between economic systems?
EX: What makes a free market economy different from a command economy.
The level of government vs. people control.
Who was the 32nd President of the United States?
Franklin Delano Roosevelt (FDR)
What is the law of supply?
As price increases, supply increases
As price decreases, supply decreases
What event caused the United States to join World War II? What country provoked it?
The attack on Pearl Harbor on December 7, 1941
Japan
What are goods and services.
Goods are physical, tangible (can be touched) objects that can be bought, owned, or stored.
Services are intangible (cannot be touched) activities that are performed by someone that provide value but cannot be physically held, stored, or owned.
Tell me the another name for a command economy and give a modern example of a country that uses it.
Centrally planned economy.
North Korea
What do the stars AND stripes represent on the American Flag?
Stars: the states
Stripes: the original 13 Colonies
Give an example of a price floor
Minimum wage
Who were the three dictators during World War II?
Joseph Stalin
Adolf Hitler
Benito Mussolini
What are the TWO types of capital?
What is the difference?
Physical: Human – made objects used to create other goods and services.
Human: knowledge and skills a worker gains through education and experience.
Explain how competition among firms is good for the consumer.
The firms must compete with one another for the consumer dollar. This means that through competition, prices will be reasonable.
Hint: there are 5
Pacific, Atlantic, Indian, Arctic, and Southern/Antarctic
How do the laws of supply and demand compete?
What is the result?
The two laws are opposite of each other.
As price increases, consumer demand decreases while supply increases creating a surplus.
As price decreases, consumer demand increases while supply decreases creating a shortage.
What was the overall purpose of the U.S. fighting in Korea and Vietnam?
Contain communism
What is the difference between opportunity cost and trade-offs?
Opportunity cost is the VALUE of the option you did not pick in your decision.
Trade-off is simply the option you did not pick.
"go to the gym to practice dribbling and shooting or stay home and play video games."
If you stay home and play video game, the trade-off is going to practice and the opportunity cost would be getting better at basketball.
Describe Adam Smith's theory of the "invisible hand."
Self-interest and competition regulate the economy.
Name the three branches of the U.S. Government and describe their job.
Legislative: create laws
Executive: enforce laws
Judicial: interpret laws
When it comes to investing in the stock market, what is the difference between dividends and capital gain?
Dividends are payouts to the holder (typically four times a year).
Capital gain/loss is the difference in price when you buy to when you sell.
When discussing atomic bombs, what is the difference between nuclear fusion and nuclear fission?
Fusion is the process of joining atoms together (far more powerful than a fission bomb)