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Casestudies Flashcards

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1
Q

What is a macroeconomic case study?

A

A macroeconomic case study examines large-scale economic factors, such as national income, inflation, and unemployment.

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2
Q

What is a microeconomic case study?

A

A microeconomic case study focuses on individual markets, consumer behavior, and the decision-making processes of firms.

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3
Q

True or False: Microeconomic studies can include analysis of market structures.

A

True

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4
Q

Fill in the blank: ___________ is the study of the economy as a whole.

A

Macroeconomics

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5
Q

Fill in the blank: ___________ focuses on supply, demand, and pricing in individual markets.

A

Microeconomics

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6
Q

What is GDP?

A

Gross Domestic Product, a measure of a country’s economic performance.

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7
Q

What does inflation measure?

A

The rate at which the general level of prices for goods and services rises.

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8
Q

Name one factor that can cause inflation.

A

Increased demand for goods and services.

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9
Q

True or False: A recession is characterized by a rise in GDP.

A

False

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10
Q

What is the unemployment rate?

A

The percentage of the labor force that is jobless and actively seeking employment.

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11
Q

What is a market structure?

A

The organizational and other characteristics of a market.

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12
Q

Multiple Choice: Which of the following is a type of market structure? A) Monopoly B) Oligopoly C) Perfect competition D) All of the above

A

D) All of the above

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13
Q

What is consumer surplus?

A

The difference between what consumers are willing to pay for a good and what they actually pay.

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14
Q

What is producer surplus?

A

The difference between what producers are willing to accept for a good and the price they actually receive.

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15
Q

Fill in the blank: ___________ is the interaction between supply and demand.

A

Market equilibrium

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16
Q

What is the law of demand?

A

As the price of a good decreases, the quantity demanded increases, and vice versa.

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17
Q

What is the law of supply?

A

As the price of a good increases, the quantity supplied increases, and vice versa.

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18
Q

True or False: A shift in demand can be caused by changes in consumer income.

A

True

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19
Q

What are externalities?

A

Costs or benefits that affect third parties who did not choose to incur those costs or benefits.

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20
Q

Give an example of a positive externality.

A

Education, as it benefits society as a whole.

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21
Q

Give an example of a negative externality.

A

Pollution, as it harms the environment and public health.

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22
Q

What is market failure?

A

A situation in which the allocation of goods and services is not efficient.

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23
Q

What is price elasticity of demand?

A

A measure of how much the quantity demanded of a good responds to a change in its price.

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24
Q

Multiple Choice: If demand is elastic, a price increase will lead to what? A) Increased revenue B) Decreased revenue C) No change in revenue

A

B) Decreased revenue

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25
What does a demand curve represent?
The relationship between the price of a good and the quantity demanded.
26
What does a supply curve represent?
The relationship between the price of a good and the quantity supplied.
27
Fill in the blank: ___________ is the total value of all final goods and services produced in a country in a given time period.
Gross Domestic Product (GDP)
28
What is the business cycle?
The fluctuation in economic activity that an economy experiences over a period of time.
29
What phase comes after a recession in the business cycle?
Recovery
30
What is fiscal policy?
Government policy regarding taxation and spending to influence the economy.
31
What is monetary policy?
Central bank actions that determine the size and rate of growth of the money supply.
32
True or False: Expansionary fiscal policy involves increasing taxes.
False
33
What is a budget deficit?
When government expenditures exceed revenue.
34
What is a budget surplus?
When government revenue exceeds expenditures.
35
What is the primary goal of monetary policy?
To control inflation and stabilize the currency.
36
What is the role of the central bank?
To manage a country's currency, money supply, and interest rates.
37
What is interest rate?
The amount charged by lenders to borrowers for the use of borrowed money.
38
Fill in the blank: ___________ policy can be used to stimulate economic growth in a recession.
Expansionary monetary
39
What is a recession?
A period of economic decline characterized by falling GDP and rising unemployment.
40
What is stagflation?
A situation of stagnant economic growth combined with inflation.
41
What is the Phillips Curve?
A concept that shows the inverse relationship between inflation and unemployment.
42
True or False: The long-run Phillips Curve suggests that there is no trade-off between inflation and unemployment.
True
43
What are the four types of unemployment?
Frictional, structural, cyclical, and seasonal unemployment.
44
What is frictional unemployment?
Temporary unemployment during the transition between jobs.
45
What is structural unemployment?
Unemployment caused by changes in the economy that create a mismatch between skills and job requirements.
46
What is cyclical unemployment?
Unemployment that results from economic recessions.
47
What is seasonal unemployment?
Unemployment that occurs at certain times of the year when demand for labor is lower.
48
What is the role of competition in a market economy?
To drive innovation, improve quality, and lower prices.
49
What is a monopoly?
A market structure where a single seller controls the entire market.
50
What is an oligopoly?
A market structure characterized by a small number of firms that dominate the market.
51
Multiple Choice: Which market structure has the most competition? A) Monopoly B) Oligopoly C) Perfect competition D) Monopolistic competition
C) Perfect competition
52
What does the term 'barrier to entry' refer to?
Obstacles that make it difficult for new competitors to enter a market.
53
What is price discrimination?
Charging different prices to different consumers for the same good or service.
54
What is a public good?
A good that is non-excludable and non-rivalrous, meaning it can be consumed by multiple people without depletion.
55
What is a common resource?
A resource that is rivalrous but non-excludable, leading to potential overuse.
56
What is the tragedy of the commons?
A situation where individuals acting in their own self-interest deplete shared resources.
57
What is behavioral economics?
A field of economics that examines the psychological factors influencing economic decision-making.
58
What does the term 'nudge' refer to in behavioral economics?
A subtle policy shift that encourages people to make decisions that are in their broad self-interest.
59
Fill in the blank: ___________ is an economic theory that suggests individuals act rationally to maximize utility.
Rational choice theory
60
What is the difference between nominal and real values?
Nominal values are measured in current prices, while real values are adjusted for inflation.
61
What is the significance of the Laffer Curve?
It illustrates the relationship between tax rates and tax revenue.
62
What is crowding out?
When government spending leads to a reduction in private sector spending.
63
What is the concept of opportunity cost?
The value of the next best alternative foregone when making a choice.
64
What is the difference between positive and normative economics?
Positive economics deals with what is, while normative economics deals with what ought to be.
65
What is an economic indicator?
A statistic that provides information about the economic performance of a country.
66
Name one leading economic indicator.
Stock market performance.
67
What is a lagging economic indicator?
A statistic that reflects changes in economic performance after the economy has begun to follow a particular trend.
68
What is the purpose of economic models?
To simplify and represent economic processes to analyze behavior and predict outcomes.

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