EXAM REVIEW

Question:What does it mean when unemployment rate is

down?

ANSWER IT means that alot of people have jobs.

Question:What does it mean when unemployment rate is

low?

ANSWER:It means that alot of people dont have jobs.

Question:What is a negative externality?

ANSWER:A harmful effect on one economics agent's actions that has an affect on another.

Question:What happens evan if we get a tiny rise in our

unemployment rate?

ANSWER:we lose billions

Question:Based on or unemployment rate what could it move up and down on a graph.

ANSWER:GDP

Question: What is GDP?

ANSWER:GDP is the total amount, in $, of the final goods

and services prudced in a country during a single year.

Question: How do we find the GDP?

ANSWER:we multiply the price of each good by the quantity of that good produced and then

add all the amounts.

Question:What does GDP stand for?

ANSWER:Gross Domestic Product

Question:What is NDP?

ANSWER:same as GDP, except it accounts for the fact that some

production is only due to depreciation. Takes GDP and subtracts total loss of value due to depreciation.

Question:True or False: Does GDP have any weaknesses?

ANSWER:YES!

Question: what do people have to do in order to buy stock?

(name two)

ANSWER: have money and look at a company

Question:Name 3 things you could do with your money?

(that has to do with stocks

ANSWER: you can 1. invest it 2. buy ownership of a company 3.

or keep it

Question: Name one of the ways hopw thr price of stocks

change?

(name one)

ANSWER:          the news may say something about it and everyone will take out there stocks and sell their part of the company

Question: name another

ANSWER: or when one company is doing better than another one everyone goes to that one(rumors of a possible takeover)

Question: Name one more

ANSWER: the sales and profit

Question: What is the bull market?

ANSWER: when the market is high and investors are confident

Question: What is the bear market?

ANSWER: When the market is low and investors are pessimistic

about the futere

Question: How would someone make the market bull

ANSWER: They could buy tons of stock but the more people

who buy stock the more bull it is

Question: If the market was very very good and the prices were high would the market be bear

or bull

ANSWER: Bull

Question: How would you discribe the market right now?

ANSWER: its in the middle which does not have a name

Question: What does the factor market provide to businesses. 

ANSWER: The factor market provides services and

resources to businesses to accomplish their goals.

Question: What is the factor market.

ANSWER: The factor market is where productive resources are

sold.

Question: What do businesses provide to the product market.

ANSWER: They provide products to sell in the market.

Question: What is the product market

ANSWER: The product market is where people put out products

and services to sell to the public

Question: What does the product market provide to

busineses

ANSWER: They provide services and products to

businesses.

Question:when are you in poverty

ANSWER:when your income for a year is lower than $9,800 or

lower than $27

Question:when your in poverty can you provide all your needs

ANSWER:no you cannot provide all your needs

Question:what are food stamps

ANSWER:food stamps are cards given to people for food.

Question:the goverment gives womens, infants, and

children(under 5)

ANSWER:nutrition and needs such as formula and diapers

Question:temporary assistance to needy families is given to who

ANSWER:it is given to families where a family member dies. only eligable for a certian # of

months

Question:      What is the Product Market??http://owa.ea1785.org/owa/redir.aspx?C=3b51cdc8800b41c2bb4aa64365a81796&URL=http%3a%2f%2fwww.episcopalacademy.org%2fdrum%2fms%2fwfg%2fmjn.jpg( FOR picture of circluar FLOW)

ANSWER:A Market where producers offer

goods and services for sale

Question:What is the Factor Market?

ANSWER:A market where productive

resources are bought and sold

Question:What are imports and exports?

ANSWER:Imports are goods coming into the United States, Exports are goods being shipped out of the

United States to other Countries.

Question: 

Who buys goods and services from the Product Market? 

ANSWER:Everyone buys goods and

services from the product market 

Question:What does the arrow represent from the Factor Market to the

Buisnesses?

ANSWER:It represents people that find

jobs entering the buisness world

Question:What happens to production cost when prices that

produce goods and services fall?

ANSWER:Production cost falls 

Question:What does increased government regulations do?

ANSWER: It limits supply, causing supply curve to shift to

the left

Question:Why does new technology speed up the

process of things?

ANSWER:It speeds it up because sthe business is willing

to supply more goods and services at the same price

Question: What happens when Productivity falls?

ANSWER: When Productivity falls, it costs more for a

company to produce the same amount of goods and services

Question:What are the 8 boxes that go with the LAW OF

SUPPLY?

ANSWER:1. Cost of Resources

2. Productivity3. Technology

4. Government Policies5. Taxes

6. Number of Suppliers7. Subsidies

8. Expectations

Question: What is the difference between micro and macro?

ANSWER: Micro- (small picture) a  model of an

individul or individul buisness Macro- (big picture) is LARGE units, looks at the ecoomy as a whole (govern, societies)

Question: Maria just sold her last cup of lemonade at her summer stand, but there was still a long line of people there. What is this

an example of?

ANSWER:  

Shortage

Question: What would the government interfere with

buisnesses merging?

ANSWER: The government would interfere with buisnesses

merging because they don't want to uliminate competition.

Question: What price do you have when you get the fixed

price

ANSWER: equilibrium price

Question: A teacher at Episcopal Academy is fired and cant take is wife out to dinner, so the chef at the restraunt he was going to

go to can't send his son to private school, and now has no chance at getting to Harvard. What is this an example of?

ANSWER: negative externality

 Question: When there are high taxes, are the costs up high or low? 

ANSWER:  

The costs will be high.

Question: 

What is a subsidy?

ANSWER: 

A subsidy is a government payment to individuals,

businesses,and other groups for certain actions.

Question: 

If a business owners produce a lot of their product, what kind of

expectations do they have?

ANSWER:It means the business owner has high expectations. 

Question: 

when there are ______ suppliers, that means there are

less supplies

ANSWER:less

Question: 

What do subsidies do?

ANSWER: 

They lower the costs of production.

Question:What is Micro Economics?

ANSWER:Micro Economics is looking at

the behavior and decision making of individuals and small

buisnesses.

Question: What is Macro Economics

ANSWER:Macro Economics is looking at

the behavior and decision making of large companies, societies, and orginization

Question:Which of the following is not an example of Macro Economics?a. McDonaldsb. Applec. WaWad. Government

ANSWER:c. WaWa because it is a

buisness in only three states

Question: What are Micro and Macro economics an example

of?

ANSWER:Micro and Macro economics is an example of an

Economic Model

Question:Which of the following is not an example of Micro

Economicsa. the local corner store

b. Caroline Jacobyc. the Episcopal Academy

d. Wendy's

ANSWER:D. Wendy's

Question: when expenses for things like paying more/less

workers and buying more/less supllies change, what kind of

costs are these?

ANSWER: Variable Costs

Question: fixed costs are when  costs______, like property taxes

 

ANSWER: Remain the same 

Question: What do you do to get the average total cost(fixed+variable)?

ANSWER: Divide the total cost by the quantity produced

Question: What is the total amount of money going into

youre pocket before subtracting your costs?

ANSWER: Total Revenue

Question: if Marginal Cost is the additional cost of producing

one additional unit, what is Marginal Revenue?

ANSWER: Extra Revenue: the change in total revenue from

producing one more unit

Question: What are the rapid spikes and declines of the

economy called?

ANSWER: They are called the business cycle.

Question: The line that goes up and down in a graph of the

business cycle measures what?

ANSWER: It measures REAL GDP

Question: What is it called when that line measuring real GDP in

the diagram of the business cycle is going up? Or rising?

ANSWER: It is called an expansion.

Question: What is it called when the line measuring real GDP is

going down?

ANSWER: It is called a contraction. A 6 month

contraction is called a recession, and a very long recession leads

to a depression.

Question: What is it called when the line measuring real GDP is

at its highest? and what is it called at its lowest point?

ANSWER: Highest point= peakLowest point= trough

Question: What is an Economic Model?

ANSWER:An Economic model is a theory

that tri to explain human economic behavior

Question: What is an Economic System?

ANSWER:An economic system is a country's way of producing things its people want and need

Question: What is the United States Economic System?

ANSWER:Our Economic System is is free enterprise capitalism

Question:True or false: Under free enterprise

capitalism, are buisnesses allowed to compete for

profit

ANSWER:True