Microeconomics
This economic concept explains why consumers buy more of a product when its price falls.
What is the law of demand?
This measures the total value of all final goods and services produced in a country.
What is Gross Domestic Product (GDP)?
This is the exchange of goods and services between countries.
What is international trade?
This curve shows the relationship between price and quantity supplied.
What is the supply curve?
When celebrities attend the Met Gala wearing $100,000 outfits, this economic concept explains why exclusivity increases value.
What is perceived value?
These are costs that do not change even if a firm produces zero output.
What are fixed costs?
This occurs when the general price level of goods and services increases over time.
What is inflation?
A tax placed on imported goods.
What is a tariff?
The responsiveness of quantity demanded to a change in price
What is price elasticity of demand?
Fashion brands releasing “limited edition” sneakers rely on this concept to drive hype.
What is scarcity?
This type of market structure has many firms selling similar but not identical products.
What is monopolistic competition?
The central bank uses this policy to control money supply and interest rates.
What is monetary policy?
This economic idea states that countries should specialize in what they produce best.
What is comparative advantage?
This represents the maximum satisfaction a consumer gets from consuming goods
What is utility?
When influencers promote products and demand suddenly spikes, this shift happens.
Rightward Shift in demand
This happens when the benefit of consuming one more unit equals the cost of producing it.
What is allocative efficiency?
This type of unemployment is caused by workers transitioning between jobs.
What is frictional unemployment?
This organization helps stabilize the global monetary system and provides financial assistance to countries.
What is the International Monetary Fund (IMF)?
Government spending and taxation decisions fall under this type of policy.
What is fiscal policy?
Designer handbags gaining value over time instead of losing it is?
What is depreciation?
A situation where one party in a transaction has more information than the other.
What is asymmetric information?
A prolonged period of declining economic activity across an economy.
What is a recession?
When a country imports more than it exports, it runs this type of balance.
What is a trade deficit?
A sustained increase in a country’s productive capacity over time.
What is economic growth?
When people buy things just because celebrities wear them, economists call this effect.
What is the bandwagon effect?