Whole Class
Defines unlimited wants with limited resources
Scarcity
Demand has an inverse relationship between what 2 things?
Price and Quantity Demanded
When Demand is greater than Supply, this is defined as having a what?
Shortage
Assume you own a business that makes cars. The government contacts you and says they are going to pay you $10,000 for every fully functioning car you produce, incentivizing you produce more calls than usual. What term does this scenario exemplify?
Subsidy
This concept is about giving up the next best alternative when you make a choice
Opportunity Cost
Assume you are a farmer. If the price of fertilizer increases, what happens to the supply curve and supply itself?
Supply curves shifts to the left, decreasing overall supply.
Using the Labor Market Model, why is equilibrium wages for doctors higher than someone bagging groceries at the store?
The supply of doctors is lower and the demand for doctors are higher than someone bagging groceries at the store.
1. Land
2. Labor
3. Capital
4. Entrepreneurship
Using the labor market model, assume the market equilibrium is $10 an hour for x amount of workers in that industry. When the government has businesses create a wage floor placed above the labor market model equilibrium set at $15, creating more supply of workers than demand. This term in practice is called what?
A minimum wage
This is a plan on how to manage your money, by monitoring your expenses compared to your income
The invisible hand
How does price alone shift the demand curve?
Assume the price of milk goes up from $3 to $6 dollars. But since you still need to buy milk, you purchase it anyway. What concept does this example cover?
Inelastic Demand
What are the two goals of anti-trust laws?
Laws designed to prevent monopolies and promote competition
To give yourself the best chance at not feeling the steep downturns in markets, this concept defines the best practice for how you should approach investing
Diversification
Give me the GDP equation and or all the components added up together that we learned.
GDP (Y) = C + I + G + (X-M)
Consumption + Business Investment + Government Spending + Net Exports
If Country A has a lower per unit of output opportunity cost compared to Country B when producing computers, Country A is considered to have a what?
As prices increase for the fixed market basket, consumers buy less of these products and more substitutes that may not be part of the market basket.
What does this exchange rate say about the US dollar compared to the Euro and how will it affect the costs of your trip while in France?
The dollar is stronger than the Euro, as it takes less dollars to get more items in terms of Euros.
For example: If someone in France costs 30 Euros, then it will only cost YOU $10 US dollars.
So, you will have more purchasing power with the dollar in France in exchange for items listed in Euros.
You deposit $100 into your checking account. The reserve requirement is set at 10%, which means your bank will hold $10 (10%) in it's reserves and it will use the $90 (90%) to loan it out/use to pay for other banking operations.
This scenario explains the financial industry concept called what?
Fractional Reserve Banking
The world has become "smaller" in nature due to easier communication with cheaper transportation has reduced barriers to movements of goods, services, people, and ideas.
What is this phenomenon called that has been taking place across the globe?
Globalization
When someone is temporarily unemployed or is in between two jobs at the moment, this is what kind of unemployment?
Why do death rates decrease as countries become richer?
Economic development results in more food, improved health care, better sanitation, and more education.
1. Decrease Government Spending by itself
2. Increase Taxes by itself
3. Do #1 and #2 at the same time
What was the first ever econ movie we watched this semester?
Star Wars