The Labor Force
What is frictional unemployment?
When someone is in between jobs or lost a job for standard reasons
Define a positive externality and give an example
A benefit borne by a bystander
Define fiscal policy
Policies the government creates to manage the economy
What is the Federal Reserve?
The central bank of the United States
What is my favorite Taco Bell menu item?
Nacho Fries
What is structural unemplyment?
When someone lost a job due to their skills no longer being needed
Define a negative externality and give an example
A cost borne by a bystander
Explain the goal of expansionary fiscal policy and give an example of this policy in action
Stimulate the economy through government spending
What is a bank run?
When banks do not have enough money in reserves to pay back their depositors
Who wrote the pivotal Y/A novel, The Fault in Our Stars
John Green
What is cyclical unemployment?
When someone lost their job due to changes in the economy or business cycle
What is a public good? List the two defining characteristics.
A good that is both nonrival and nonexcludable
Explain the goal of contractionary fiscal policy and give an example of the policy in action
Slowing down the economy through raising taxes
If the Fed wants to implement expansionary monetary policy, what will happen to interest rates?
Interest rates will go DOWN (to encourage people to spend more money)
What is my favorite Disney Pixar movie?
Luca
Define the labor force. Who is included?
Working age people who are employed or actively looking for a job
What is a club good? List the two defining characteristics.
A good that is excludable but nonrival
List two different types of government revenue
Income taxes, payroll taxes, corporate taxes, and excise taxes
What is the role of the FDIC? What does is stand for?
Federal Deposit Insurance Corporation: Maintains financial stability for banks (insuring deposits)
What order is the Individual Medley (IM) event in competitive swimming?
Butterfly, Backstroke, Breaststroke, Freestyle
If the unemployment rate of a country is 6% and the population is about 100 million people, how many people are unemployed?
6 million
What is a free-rider? How does the government handle the free-rider problem?
Someone who benefits from goods without paying. The government offers public goods through taxation.
Explain automatic stabilizers and give an example
Government systems/programs that automatically kick in to ensure spending is timely and targeted
What is thew role of the FOMC? What does it stand for?
Federal Open Market Committee: Meets once a month to discuss economic outlook and the goals of the Fed
What late 2000s sitcom features Ted, Barney, Robin, Marshall, and Lily?
How I Met Your Mother