Unit 1 Test

Question 1

Economics

Answer 1

The study of security and choice

Question 2

Labour Market

Answer 2

Strong right now which is bad for companies

Question 3

An Economy

Answer 3

A place to measure GDP (How many jobs and services are produced)

Question 4

Deflation

Answer 4

Rise in the value of currency and fall in the price level

Question 5

Two Worst Decades

Answer 5

30s (Deflation) 70s (Bad inflation and unemployment)

Question 6

Interest Rate

Answer 6

The cost of making money

Question 7

Treasury (Debt Instrument)

Answer 7

Bond, lending money to the government, fixed rate

Question 8

Raising Minimum Wage

Answer 8

you can only get skilled workers so it takes away jobs

Question 9

Commodity

Answer 9

An interchangeable good (wheat, copper, labour)

Question 10

Agricultural Revolution

Answer 10

10000 BCE, started using land so land is where all value is

Question 11

Commercial Revolution

Answer 11

1100 AD or 1492, commerce/ trade allows you not to work, Sea makes you powerful

Question 12

Industrial Rev

Answer 12

1776, First industrialized countries powerful (Britain, France, Italy, US, Japan)

Question 13

Technology Revolution

Answer 13

Started here

Question 14

Laws of Market

Answer 14

Outcome of certain behavior in certain social framework being definite and foreseeable results

Question 15

Traditional System

Answer 15

No decision, do what your parents do

Question 16

Command

Answer 16

Never enough, decisions made wrong, gov gets things first

Question 17

Free - Market

Answer 17

Capitalism, Laisez Faire

Question 18

Socialism

Answer 18

Vote and lots of taxes and free stuff

Question 19

Communism

Answer 19

Forced socialism

Question 20

Human Resources

Answer 20

Unskilled labor

Question 21

Capital

Answer 21

To an economist, factories, machineries, tools to make smth

Question 22

Entrepreneurship

Answer 22

Rolling up sleeves and making smth new

Question 23

Most Imp British ppl

Answer 23

Isaac Newton, Shakespeare, Churchill

Question 24

Industrial Age

Answer 24

Recall and comprehension required, life focuses on factory

Question 25

Information Age

Answer 25

Critical thinking, high paying skilled jobs

Question 26

Info-Tech Age

Answer 26

Flexible/Adaptable

Question 27

Classical Econ

Answer 27

Adam Smith

Question 28

Cainsian Econ

Answer 28

Marx

Question 29

John Graunt

Answer 29

1620-1674, Dad of Stats

Question 30

Sir William Petty

Answer 30

Rudimentary GDP, got gov to use stats

Question 31

David Hume

Answer 31

Anti-Mercantilist, trade not zero sum, influenced Smith

Question 32

Pillars of Cap

Answer 32

Private Property, Prices, Competition, Entrepreneurship, Free Press

Question 33

Private Property

Answer 33

People take care of own crap better

Question 34

Prices

Answer 34

Gives items to people who maximize the utility

Question 35

Competition

Answer 35

We lose jobs but gain more than we lost every year.

Question 36

Entrepreneurship

Answer 36

Keeping rewards spurs innovation

Question 37

Free Press

Answer 37

Calls out corruption

Question 38

Hegel

Answer 38

1770-1831, philosopher who influenced Marx (change very imp)

Question 39

Das Capital

Answer 39

1867, by Engel (father of socialism and communism)

Question 40

Gross Domestic Product

Answer 40

GDP, measure the size of an economy (Consumers, business and Gov, Export - Import, Extra product = inventory

Question 41

Scarcity

Answer 41

Not enough to produce necessary goods and services

Question 42

Opportunity Cost

Answer 42

What you give up to get something

Question 43

Marginal Change

Answer 43

Small adjustment to current plan

Question 44

Incentive

Answer 44

Smth that induces a person to act

Question 45

Models

Answer 45

Simplify reality to help us get it

Question 46

Micro Econ

Answer 46

How households and firms make decisions

Question 47

Macro Econ

Answer 47

Study of economy wide phenomena

Question 48

Diminishing Marginal Returns

Answer 48

Value goes down as time passes

Question 49

Market Economy

Answer 49

An economy that allocates resources through de-cntralization

Question 50

Efficiency

Answer 50

Getting the most from scarce resources

Question 51

Positive

Answer 51

A statement describing how world is

Question 52

Normative

Answer 52

How world should be

Question 53

Production

Answer 53

How much you produce

Question 54

productivity

Answer 54

Quantity of goods and services produced by each hour of a workers time

Question 55

Market Failure

Answer 55

If the market gets smth wrong

Question 56

Market Power

Answer 56

The ability of one provider to unduly influence market prices

Question 57

Non- Rival factors of proction

Answer 57

when a product isn't scarce, like assembly line analysis

Question 58

Comparative Advantage

Answer 58

One has an advantage when they can make a good with less supplies

Question 59

Absolute Advantage

Answer 59

Smaller quality of inputs to make goods

Question 60

Price of Trade

Answer 60

In order for two people to benefit from a trade, the price must be between the two opportunity costs