Economics 101 |
#1 |
Economics is all about maximizing one's ______________ |
utility |
#2 |
Alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action |
Opportunity Cost |
#3 |
What are all 6 traits of a Market Economy? No partial points |
Private Property Markets and Prices Incentives/Self Interest Freedom of choice (this is debatable but is part of the “classic definition”) Competition Limited government role |
#4 |
'process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. |
Creative destruction |
#5 |
To use price discrimination sellers must be able to prevent ____________, which means they must prevent consumers who buy an item at a lower price from reselling it at a higher price. |
Arbitrage |
Fiscal and monetary policy |
#1 |
_____________ policy is set by congress and the White house. It involves the authority to tax and spend |
Fiscal |
#2 |
Janet Yellan is one of the primary driver's of setting_______ policy at the ______________ |
Monetary and Federal Reserve |
#3 |
Funds the bank must hold in cash, either in their vaults or on deposit at a Federal Reserve Bank |
Reserve Requirement |
#4 |
The buying and selling of government securities through primary dealers by the Federal Reserve in order to control the money supply |
Open Market Operations |
#5 |
The interest rate charged by the federal reserve to banks for loans through their discount window |
Discount Rate |
Surprises and alphabet soup |
#1 |
The economic value of an employee's skill set |
Human Capital |
#2 |
___________________ is when two parties in a transaction do not have the same information. I need the term and an example |
asymmetric information |
#3 |
What is GDP? words, definition and equation necessary |
Gross Domestic product, the total value of goods produced and services provided in a country during one year. |
#4 |
What is CPI? words and definition |
Consumer Price Index: A measure that examines the weighted average of prices of a number of consumer goods and services |
#5 |
The market in which banks can borrow or lend reserves, allowing banks temporarily short of their required reserves to borrow from banks that have excess reserves |
Federal funds market |
Government and the Economy |
#1 |
What is the cost or benefit that affects a party who did not choose to incur that cost or benefit |
Externalities |
#2 |
Government has to provide these goods or services because of the free rider problem |
Public Goods |
#3 |
what do you call legislation to limit monopolistic behavior? |
Anti-trust laws |
#4 |
what is a Laffer curve and what economic theory support |
supply side economics |
#5 |
What are all 6 justifications for government intervention in the economy? Also I need a specific example of each one. No partial points |
Maintaining Legal and social Framework, correcting externalities, providing public goods, redistributing wealth, stabilizing the economy, and regulating competiyion |