Economics relates to ___________

Macroeconomics refers to larger systems (nation wide), and Microeconomics refers to smaller systems (like stock market, steel market, etc)

________________ occurs where the needs of the consumer meet the needs of the suppliers.

_____________ is based on how the quantity of a particular product responds to the price demanded for that product. If quantity responds quickly to changes in price, the supply/demand for that product fits this.

__________ occurs when market is capable of producing output high enough to meet consumer demand.

____________ refers to a country focusing on a specific product that it can produce more efficiently and cheaply than another country.

In a _______________ supply and demand are determined by consumers

In a _____________ a public entity or planning authority makes the decisions about what resources will be produced, how, and who will benefit from them.

Existence of competition, number and size of suppliers, influence of suppliers over price, variety of available products, and ease of entering the market are all things considered to CLASSIFY markets

________________ happens when there is inadequate competition, inadequate information, immobile resources, negative externalities or side effects, and failure to provide public goods.

Every good and service requires FACTORS OF PRODUCTION, such as:

Labor - earns wages

Capital - earns interest

Land - earns rent

Entrepreneurship - earns profit

_____________ occurs when a single seller controls the product and it's price without competition.

_____________ refers to a number of firms selling similar products, but they are not identical, such as different brands of clothes or food.

_______________ is when only a few firms control the production and distribution of products, such as automobiles, preventing large numbers of firms from entering the market.

The four types of monopolies are: Natural, geographical, technological, governmental.

The Sherman Antitrust Act, Clayton Antitrust Act, and Robinson-Patman Act were all actions taken to control:

The ability of a product or service to satisfy the need of a consumer is called ______. Which there are four types of.

Form utility - desirable for physical characteristics

Place utility - desirable for location

Time utility - desirable for availability

Ownership utility - desirable because ownership of the product passes to consumer.

Market research, market surveys, and test marketing are three ways in which many producers will ______ the market before selling.

The major element(s) of a marketing plan are:

A ___________________ buys in large quantities and then resells smaller amounts to other businesses.

___________ sell directly to the consumers rather than to businesses.

The INCOME GAP in America continues to grow, largely due to growth in the service industry, changes in the American family unit and reduced influence of labor unions.

____________ looks at economic trends and structures on a national level such as output, consumption, investment, government spending, net exports.

The _____________________ measures a nation's economic output over a limited time period such as a year.

The consumer behavior known as _______________ describes the tendency for consumers to spend more in conjunction with increases in their income, in general, the more money they make, the more they consume (spend).

The GDP uses:

the expenditure approach - measures how much money is spent in each sector

the income approach - measures how much money is earned in each sector

A country's macro-economy is made of:

Entrepreneurial income consists of two forms. _______________ is income that goes back to the entrepreneur himself. _______________ is income that goes into the corporation as a whole.

If population grows ______________ and the income grows _______, individual income will remain low or even drop drastically.

_____________ requires both that consumers purchase goods and workers produce them.

__________= GDP is high and the economy prospers

_________=GDP falls, unemployment rises

__________=the recession reaches its lowest point

_________=unemployment lessons, prices rise, and the economy begins to stabilize again

When demand outstrips supply, prices are driven artificially high, or otherwise known as INFLATED.

When there is too little spending and supply has moved far beyond demand, a SURPLUS of product results.

Cyclical unemployment is when

Frictional unemployment is when -----

Structural unemployment is when

Small to big inflation is creeping inflation, walking inflation, galloping inflation, and hyperinflation.

Populations are studied by

Money is used as -

Commodity money - gems or precious metals

Representative money - exchanged for items such as gold or silver

Fiat money - no inherent value but has been declared to function as money by the government

Banks earn their income by LOANING out money and charging INTEREST on those loans

The Federal Reserve System also known as the _____ implements all monetary policy in the US, and has the power to decrease or increase the amount of available money for loans.

Some developing countries can receive help from the International Monetary Fund or the World Bank.

As corrupt and oppressive governments tend to do, in general, countries are more likely to experience economic _________ if their governments encourage entrepreneurship and provide private property rights.

E-commerce makes it possible for nearly any individual to set up a direct market to consumers, as well as direction interaction with suppliers.

The knowledge economy is a growing sector and includes:

_______________ or economics driven by e-commerce and other computer-based markets or products.

The price of oil drops dramatically, saving soda pop manufacturers great amounts of money spent on making soda pop and delivering their product to market. Prices for soda pop, however, stay the same. This is an example of what?

John Maynard Keynes advocated what?

Assume a society has a given production possibilities frontier (PPF) representing the production of guns and butter. Which of the following would cause the PPF to move outward?

Which of the following is a supply shock likely to produce?

I. an increase in input prices

II. an increase in price levels

III. a decrease in employment

IV. a decrease in GDP

Which of the following would not cause aggregate supply (AS) to change?

Which of the following will bring about greater income equity in a society?

Ivy loses her job because her skills as a seamstress are no longer required due to a new piece of machinery that does the work of a seamstress more quickly and for less money. Which type of unemployment is this?

Inflation has what effects?

Hyperinflation is most likely to be associated with:

1. demand-pull inflation

2. cost-push inflation

Assume a nation's economy is in recession. The nation has an MPC of 0.9 and the government wants to enact fiscal policy to shift the AD curve by 10 billion dollars. What must the government do to its current spending rate?

How do banks create money?

Which of the following correctly states the equation of exchange in monetarist theory?

(Money supply, Velocity of the average dollar spent = price of goods and services, quantity of goods and service)

Which of the following best defines American Gross Domestic Product (GDP)?

Great Depression - The roaring 20's was when things were going great, people were buying stuff, and greed settled in on investing in the stock market to make more. People invested way too much into the stock market, including life savings and taking out bank loans. In 1929 wall street panicked and wiped out millions of investors. Consumer spending dropped. Enter the dust bowl in 1930, mixed with an underlying problem of people invested so much into the market they can't invest into the economy to keep the country afloat. The economy crumpled underneath mixed with the uncertainty of the dustbowl, people pulled from the market in fear. Those who didn't get out quick enough lost all worth in the their stocks. Banks could give survival loans, because banks had no revenue themselves. The production of WWII to fight Hitler jumped started the economy though. As well as FDR's WPA plan to build the infrastructure of the country.

The Great 2008 Recession - The financial crisis was primarily caused by deregulation in the financial industry. That permitted banks to engage in hedge fund trading with derivatives. ... When the values of the derivatives crumbled, banks stopped lending to each other. That created the financial crisis that led to the Great Recession. The war on terror led to many bases closing due to save government funding to put towards war machines to serve in the war on terrorism in Afghanistan. This loss of jobs produced less consumer spending in the market.

The benefits of a CLOSED MARKET are:

the domestic economy meets all it's needs from domestic resources. Avoids foreign exchange rate risks. Keeps things domestic and avoids recession or global financial crisis

The benefits of a free market are:

it contributes to political and civil freedom

ensures competitive markets

contributes to economic growth

_________ ensures civil freedom and allows competitive markets and transparency, while _________ keep production domestic and avoid global flaws and recessions as well as exchange rates.

Minimum wage pros - people get a livable wage, 92 percent of all welfare recipients are working full time, they still can't make it. It puts the economy back into the people's hands. It could reduce taxes considering that welfare taxes are reduced. If people earn more (14 an hour) they too would pay more in taxes, therefore the government can build more infrastructure, police force, and educators. The overall quality of life will improve allowing more people to buy homes.

Minimum wage cons - could cause tax increases to supplement, could potentially cause businesses to go under due to not being able to pay customers a higher wage while keeping product costs the same. Could damage the small businesses the most. Concerns might be that people don't choose to advance with education or military and stay stagnant at minimum wage jobs.

MR = MC

M1 is _____________ and M2 is ____________.

The Lorenze curve

What curve is seen here? This illustrates the variations in the amounts that can be produced by two products if both depend on the same finite resource for their manufacture.

This graph shows the __________ and represents income inequality or wealth inequality, plotting the percentiles of the population on the x axis according to wealth.

This graph shows _________. When the production level reaches a point that cost of producing an additional unit of output (MC) exceeds the revenue from the unit input (MR) producing the additional unit of output reduces profit.

This graph shows the _________ and refers to the total quantity of output, in other words, REAL GDP firms will produce and sell.

This graph shows the _________ with price on the left (y axis) and quantity on the right (x axis). This shows the relationship between the price of a good/service and the quantity demanded for a given period of time.

On his theory, ____________ advocated for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of a depression.

___________'s theory of the ___________ states that mechanisms through which benefit social and economic outcomes may arise from accumulated self-interest actions by individuals, therefore damaging the whole.

___________ is the theory of controlling the supply of money as the chief method of stabilizing the economy.

The informal, black, or underground economy is _____________.