Economics

Question 1

Law of Demand

Answer 1

Inverse relationship between price and demand

Question 2

Law of Supply

Answer 2

Direct relationship between price and supply

Question 3

Equilibrium Price

Answer 3

Market happy place

Question 4

Law of Diminishing Marginal Utility

Answer 4

With every use of a product satisfaction goes done

Question 5

Shortage

Answer 5

Price product below equilibrium price

Question 6

Surplus

Answer 6

Price product above equilibrium price

Question 7

Profit

Answer 7

Income minus expenses

Question 8

Scarcity

Answer 8

Lack of gives value

Question 9

Opportunity Cost

Answer 9

What you sacrifice when you make a choice

Question 10

Stock

Answer 10

Sharing company

Question 11

Bond

Answer 11

I owe you from the government

Question 12

Mutual Fund

Answer 12

Bunch of stocks in one product

Question 13

ROI

Answer 13

Return on investment

Question 14

Capital

Answer 14

Money

Question 15

Free Enterprise

Answer 15

Laissez Faire

Question 16

Normal Good

Answer 16

Demand goes up in a good economy

Question 17

Inferior Good

Answer 17

Demand goes up in a bad economy

Question 18

The Federal Reserve

Answer 18

Regulates interest rate

Question 19

Interest Rate

Answer 19

Amount a lender charges a borrower

Question 20

Economics

Answer 20

Study of choices with limited resources

Question 21

Microeconomics

Answer 21

The study of individual choices

Question 22

Macroeconomics

Answer 22

The study of choices of large groups

Question 23

Entrepreneur

Answer 23

Someone who starts their own business

Question 24

GDP

Answer 24

Gross domestic product

Question 25

Recession

Answer 25

Two consecutive quarters of negative economic growth

Question 26

Human Capital

Answer 26

Workers

Question 27

401K

Answer 27

Retirement account where you pay taxes at the end

Question 28

ROTH IRA

Answer 28

Retirement account where you pay taxes up front

Question 29

"Live beneath your means"

Answer 29

Spend less than you make

Question 30

Mortgage

Answer 30

Home loan

Question 31

An increase in the price of a product will reduce the amount of it purchased because:

Answer 31

Consumers substitute relatively high-priced for relatively low-priced products.

Question 32

What will not cause the demand for product K to change?

Answer 32

A change in the price of K.

Question 33

What would not shift the demand curve for beef?

Answer 33

A reduction in the price of cattle feed.

Question 34

If the price of K declines, the demand curve for the complementary product J will:

Answer 34

Shift to the right.

Question 35

A firm's supply curve is upsloping because:

Answer 35

Mass production economics are associated with larger levels of output.

Question 36

Adam Smith was the father of...

Answer 36

Capitalism

Question 37

What two forces comprise the Invisible Hand?

Answer 37

Supply and demand

Question 38

Laissez Faire

Answer 38

Hands off

Question 39

What was the name of Adam Smith's most famous book that outlined the benefits of a free market economy where individuals are free to pursue their own self interest?

Answer 39

The Wealth of Nations

Question 40

Karl Marx was considered the father of...

Answer 40

Communism

Question 41

Name one of Marx's famous books

Answer 41

The Communist Manifesto

Question 41

What was Marx's thoughts on religions?

Answer 41

They are the opium of the masses.

Question 42

Karl Marx believed that private property should be...

Answer 42

Abolished

Question 43

Milton Friedman was like a modern version of what other economist we studied?

Answer 43

Adam Smith

Question 44

Which U.S. President was a disciple of Friedman?

Answer 44

Reagan

Question 45

How did Milton Friedman feel about the role of government involvement in the economy?

Answer 45

Laissez Faire

Question 46

Keynesian Economics is the belief that government should do what in the event of a recession or depression?

Answer 46

Inject money into the economy

Question 47

According to Keynes, what should a government do when times are good?

Answer 47

Tax

Question 48

Nouriel Roubini has been given what nickname?

Answer 48

Dr. Doom

Question 49

Roubini predicted the...

Answer 49

2008 Recession