Smith/Marx/Keynes
He believed that competition and self-interest drive economic prosperity.
Who is “Adam Smith”?
When the price rises and the quantity demanded falls, this law is at work.
What is the Law of Demand?
When every café thinks its pumpkin spice latte is one-of-a-kind, even though they all taste the same, you’ve entered this market structure.
What is monopolistic competition?
Humans exhibited cooperative, egalitarian behavior in this early system to survive.
What is a Hunter-Gatherer system?
Basic groceries like milk and bread are usually…
What are inelastic goods?
Adam Smith’s concept that describes how individual self-interest can lead to societal benefit.
What is the “invisible hand”?
A trend on TikTok suddenly makes a product popular. This shifts which curve?
What is the Demand Curve (right)?
This market structure has just a few major players — kind of like how Netflix keep fighting for your binge-watching soul.
Answer: What is an oligopoly?
This economic system has privately owned resources that are bought and sold in markets, with profit as the main goal.
What is Capitalism?
When elasticity is greater than 1, demand is considered this.
What is elastic?
Marx argued that capitalism creates this division between the working class and the owners.
What is “class conflict”?
When quantity demanded equals quantity supplied.
What is market equilibrium?
In this market structure, firms sell identical products and have no control over prices
Answer: What is perfect competition?
This system said a nation’s power depended on how much gold it had.
What is Mercantilism?
Products like insulin or gasoline often have this type of elasticity because consumers need them regardless of price.
What is inelastic demand?
Keynes argued that during depressions, monetary policy alone is insufficient and must be combined with this type of policy.
What is “fiscal policy”?
A price ceiling below the equilibrium causes this outcome.
What is a shortage?
This market structure is basically the “Mean Girls” of economics — one dominant firm calling the shots while everyone else just follows
Answer: What is a monopoly?
This system tied serfs to the land they worked, in exchange for protection and a small plot to farm, with obligations to lords.
What is Feudalism?
This graph shape represents perfectly inelastic demand.
What is a vertical line?
Keynes argued that during depressions, monetary policy alone is insufficient and must be combined with this type of policy.
What is “fiscal policy”?
A new technology makes production cheaper for suppliers. What happens to supply?
What is the supply increase (shift right)?
This happens when a company dominates a market because it’s more efficient for one provider to exist
Answer: What is a natural monopoly?
This movement changed shared farmland into private farms, forcing many people to leave the land.
What is the Enclosure Movement?
The formula for price elasticity of demand uses this ratio
What is (% change in quantity demanded) ÷ (% change in price)?