Exsam 1

Question 0

What is Normative economics?

Answer 0

A opinion based economic statement

Question 1

Define macro economics

Answer 1

The study of the economy as a whole

Question 2

What is positive economics

Answer 2

An economic statement base on fact

Question 3

Define income gap

Answer 3

The gap between the rich and the poor (income)

Question 4

What is the Law of demand

Answer 4

Price goes up demand goes down consumer

Question 5

What is the law of supply

Answer 5

When supply goes up price goes up -supplier

Question 6

Inflation

Answer 6

Price goes up makes people poorer

Question 7

Hypo-inflation

Answer 7

Price goes up a little bit-poorer

Question 8

Hyperinflation

Answer 8

Price goes up a lot -very poor

Question 9

Disinflation

Answer 9

Price goes up and down

Question 10

Deflation

Answer 10

Price goes down- rich effect

Question 11

Stagflation

Answer 11

Price goes up during a recession

Question 12

Market

Answer 12

Where buyers and sellers get together to exchange products

Question 13

Rational

Answer 13

People want the best product for the least price

Question 14

Incentives

Answer 14

Reinforcement to do something

Question 15

Marginal analysis

Answer 15

Marginal benefits vs. marginal costs

Question 16

Central planned economy

Answer 16

All decisions are made at government level

Question 17

Market economy

Answer 17

Free to do buiessness as you please free from government intervention

Question 18

Mixed economy

Answer 18

Combination of central planned economy and market economy

Question 19

Define effective
Define efficient
What is it call when the 2 are done correctly

Answer 19

1-do things correctly
2-do many things
3-productive

Question 20

Centrus Parabus

Answer 20

Everything stays the same except for 1 variable.

Question 21

Capital

Answer 21

Things needed in order to produce something

Question 22

Land

Answer 22

Natural resources

Question 23

Labor

Answer 23

Physical /mental labor’s to produce ideas or products

Question 24

Entrapranurial

Answer 24

People who are willing to risk their money to make more money

Question 25

Innovation

Answer 25

An improvement in a current idea

Question 26

Invention

Answer 26

A new idea

Question 27

Firm/compony/business

Answer 27

Organization that has the objective to make a profit through a product or service

Question 28

Good

Answer 28

A physical item

Question 29

Technology

Answer 29

Strategies and machines used to provide service/product

Question 30

Optutunity cost

Answer 30

When decisions are made at a price point

Question 31

PPF graph is used to

Answer 31

Production possibility frontier ( production proses graphed)

Question 32

Absolute advantage

Answer 32

Make a product with less resources than another manufacturer

Question 33

Competitive advantage

Answer 33

Opportunity cost is lower can do something easier than competitor

Question 34

Circular flow of money

Answer 34

Market ➡️households➡️product➡️firm and vis versa

Question 35

Substitute products

Answer 35

One product that replaces another for consumers

Question 36

Complement products

Answer 36

A product that goes with another price of one effects other

Question 37

Normal products

Answer 37

Obeys the laws of supply and demand

Question 38

Inferior product

Answer 38

Product only bought because you cant afford another -when income goes up inferior product demand goes down

Question 39

Input prices

Answer 39

What does it cost to manufacture the product

Question 40

Market equilibrium

Answer 40

Supply and demand are the same

Question 41

Price ceiling

Answer 41

Can sell product at maximum price, but price must be below the equilibrium

Question 42

Price floor

Answer 42

Minimum price that can be changed, but must be above price equilibrium

Question 43

Morbidity

Answer 43

Measures the health of a nation

Question 44

Mortality

Answer 44

Death rates of a nation

Question 45

Medicare

Answer 45

Covers people 65 and older

Question 46

Medicade

Answer 46

Covers low income people

Question 47

Obama care

Answer 47

Stay on parents policy till 26 Designed to give poor health insurance/ standardize policy's Income 200,000 or more pay higher tax

Question 48

Asymmetric information

Answer 48

One party has more info. About a economic situation than another

Question 49

Adverse selection

Answer 49

When a individual knows more about something that has to do with economics and uses it to their advantage

Question 50

Moral hazard

Answer 50

Actions that people take in order to take advantage of someone else after a buissness agreement

Question 51

Consumer surplus

Answer 51

What you are willing to pay vs. what your actually paying

Question 52

Producer surplus

Answer 52

Above the supply curve but below the price equilibrium price

Question 53

Economic surplus

Answer 53

The consumer surplus + the producer surplus

Question 54

Single payer

Answer 54

Government pays for all insurance