What is Money I
What is Money II
Math
Famous Economists
100
What are the three primary functions of money?
Answer: Medium of exchange, unit of account, and store of value
100
Question: Which is more liquid: cash or savings account?
cash
100
Unlike regular equations (which may be true only for specific values), these hold for all permissible values.
what is an idenity
100
This French economist's Tableau Économique laid the groundwork for understanding the flow of income in an economy.
Who is Francois Quesnay?
200
Which function of money solves the double coincidence of wants problem?
Medium of exchange.
200
Order from most liquid to least liquid: real estate cash, stocks, real estate
Cash, stocks, real estate
200
What is the mathematical expression for GDP?
What is GDP = C + I +G + (X-M)
200
This 19th-century economist independently developed the theory of marginal utility and the demand curve
Who is William Stanley Jevons?
300
Why is money considered a unit of account?
It provides a standard measure for prices and economic value.
300
Which is more liquid: a checking account or a certificate of deposit (CD)?
Checking account.
300
use the equation for GDP to explain why imported Armani jeans do NOT impact the US GDP
Since GDP = C + I + G + (X - M), national income accounting and an increase in consumption, C, from imported Armani jeans is exactly offset bya decrease in M
300
This MIT economist wrote Economics, one of the most widely used textbooks in the world.
Who is Paul Samuelson?
400
How does money serve as a store of value?
It allows individuals to save and transfer purchasing power to the future.
400
Arrange from most to least liquid: savings account, cash, car.
Cash, savings account, car.
400
Derive S-I = NX = (X-M)
National income (GDP):
Y=C+I+G+NXNational saving (S):
S=(Y−T−C)+(T−G)Net exports:
NX=X−M
Y = C + I + G + NX
Y - C - G - I = NX
(Y−T−C)+(T−G) - I = NX
400
This economist developed the concept of Gross National Product (GNP) and won the Nobel Prize in 1971
Who is Simon Kuznets?
500
What characteristic of money helps it function effectively in all three primary roles?
liquidity.
500
Arrange from most to least liquid: bond, checking deposit, house.
Checking deposit, bond, house.
500
Explain why the simple interest rate, R (e.g., I = PRT). is always larger than the discount interest rate, d (e.g., D= MdT)
Because simple interest is based on the amount the borrower receives (the full principal), while discount interest is based on the amount the borrower repays (the larger maturity value).
500
This cognitive linguist showed how metaphors like "tax relief" shape public attitudes toward economic policy.
Who is George Lakoff?
600
Is a gold coin an example of commodity money or fiat money
what is commodity money
600
The direct exchange of goods and services without using money.
What is bartering
600
What is the amount of consumer surplus in the following model? Use the following supply (Qs) and demand (Qd) at the equilibrium price.
Qs = 30.30
Qd = 60.60 – 3P
Consumer Surplus=21×base×height
Base = equilibrium quantity = 30.30
Height = difference between max price and market price = 20.20−10.10=10.10
Consumer = 1/2(30.30 x 10.10) = $152.015
600
He was the first American to win the Nobel Prize in Economic Sciences, in 1970.
Who is Paul Samuelson?
700
How did money improve upon the bartering system?
It provided a common medium of exchange, making trade easier.
or
Specialization
700
Is modern paper currency an example of commodity money or fiat money?
fiat money
700
What are the Y- and X-intercepts? Use the following supply (Qs) and demand (Qd) at the equilibrium price.
Qs = 30.30
Qd = 60.60 – 3P
What are the Y- and X-intercepts?
- X-intercept: 60.60
Demand Curve Y-intercept: 20.20
700
Kuznets suggested income inequality first rises and then falls as a country develops—a pattern known as this “curve.”
What is the Kuznets Curve?
800
the primary technology behind cryptocurrencies?
What is blockchain technology
800
What is the double coincidence of wants?
It requires finding someone who both has what you want and wants what you have.
800
Which students paid more for their 3rd hour of partying? Explain using opportunity costs.
1976: 3rd hour cost 6 pages
2025: 3rd hour cost 3 pages
800
He tried to link the business cycle to fluctuations in this celestial body.
Who is William Stanley Jevons?
900
equation for GDP
What is GDP = C + I + G + (X-M)
900
Why is M0, M1, M2 or M3 not included in GDP?
because GDP measures the market value of good and services produced in a year. The mone is not a good or service it is an asset
900
Suppose the demand function for on-campus parking is Qd= 6060 – 3P and Qs - 5460. What is the amount of the shortage or surplus when the price is 300 (P=300)?
What is： Qs−Qd=5460−5160=300
900
He was a strong advocate of free markets and heavily influenced - "Laissez-faire" which he helped popularize
François Quesnay