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Macroeconomics Midterm - Spring 2024
define economics - correct answer economics is how individuals, firms and governments allocate their scarce resources to satisfy their unlimited wants. define utility - correct answer the ability to satisfy a want positive economics vs normative economics - correct answer Positive: objective Normative: "should" subjective what is marginal analysis? - correct answer Kee's/notes definition: measure of one more or one less google definition: Marginal analysis is an examination of the associated costs and potential benefits of specific business activities or financial decisions What is equilibrium? - correct answer quantity of supply = quantity demanded what is the difference between micro and macro economics? - correct answer macro - economics of government (big picture) micro - economics of individuals and firms
what is opportunity cost? - correct answer the value of the next best alternative that must be sacrificed when a choice is made definition of money - correct answer Anything that is commonly accepted in exchange for other goods and services definition of liquidity - correct answer the ease with which an asset can be converted into the economy's medium of exchange The equation of exchange - correct answer MV=PQ M - total money supply V - velocity of money ($1 spent per unit time) P - price (average price per transaction) Q - total transactions what is purchasing power parity? - correct answer the rate of conversion of one country's currency to purchase the same goods when and by whom did the first banks come into existence? - correct answer in 15th century Italy by the Jews what does FDIC stand for? - correct answer Federal Deposit Insurance Corporation
define ethics - correct answer ethics is a system of moral principle that governs one's behavior what does TANTAAFL stand for? - correct answer There Ain't No Thing As A Free Lunch what is the difference between corporations and cooperatives? - correct answer cooperatives are a group of businesses coming together to be one entity what does laizzez-faire mean? - correct answer hands off what is the invisible hand? - correct answer The idea that people pursuing their own self-interest actually benefit the public at large - the movement of the market - phrase coined by adam smith is money the root of all evil? - correct answer No, the love of money is the root of all evil what's the Fed's target for inflation? - correct answer 2% what is the Fed's target for unemployment? - correct answer 5% what are the big 5 areas of business? - correct answer marketing, management, accounting, finance, information systems
what is the spirit of capitalism? - correct answer the obligation to reinvest money in business rather than to spend it. (weber) what is the law of supply and demand? - correct answer if demand increases, supply falls and vice versa describe the ascetic entrepreneur - correct answer an entrepreneur who lives below their means - monastic describe the circular flow - correct answer Proverbs 14:23: In all toil there is ________, but mere talk tends only to poverty. - correct answer profit proverbs 16:3 - commit your _____ to the LORD, and your plans will be established. - correct answer work Ecclesiastes 9:10a: 10 Whatever your hand finds to do, do it with all your ________. - correct answer might Acts 20:35: 35 In all things I have shown you that by working hard in this way we must help the _______ and remember the words of the Lord Jesus, how he himself said, 'It is more blessed to give than to receive.'" - correct answer needy
- advancement comes from being someone deserving of liberty Theme: I, Pencil - correct answer - allegory for humanity
- no one alone can complete the basic task of building a pencil
- humility Theme: ascetic entrepreneurship - correct answer - asceticism
- entrepreneurship
- capitalism
- the protestant work ethic
- the invisible hand/the free market Theme: Solferino Crossroads - correct answer - crossroads
- the nature of man
- reactions to stimuli
- forethought vs impulsivity
- tenacity
- public vs private philanthropy secular worldview - correct answer Christian worldview - correct answer
4 economic resources and their rewards - correct answer land - rent labor - wages capital - interest entrepreneurship (enterprise) - profits production possibilities frontier - correct answer a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology - illustrates trade-offs another word for capitalism... - correct answer free market/free enterprise 4 forms of business - correct answer Sole Proprietorships Partnerships Corporations Cooperatives what are the roles of the entrepreneur? - correct answer the innovator, the risk taker, the alert discoverer what is the CPI? - correct answer (consumer price index) - average price of a standard basket of goods what are the functions of money? - correct answer 1. standard of value
- medium of exchange
what is the concept of free enterprise? - correct answer competition/choice who owns a corporation? - correct answer stockholders/shareholders what does 'ceteris paribus' stand for? - correct answer "all things equal" what is productivity? - correct answer the solution to scarcity who created the federal reserve? - correct answer Woodrow Wilson what are the activities of the federal reserve? - correct answer - controlling the money supply
- controlling banks with interest rates (down to grow, up to slow) and reserve requirements
- controlling inflation with printing of money (to help grow) and raising interest rates (to slow down) who created the term capitalism? - correct answer Karl Marx? define prices - correct answer the market determination of value of goods what is the difference between gross and net profit? - correct answer gross profit: revenue - cost of goods sold net profit: money left after paying expenses
what is the measure of freedom? - correct answer first good society video - correct answer Mrs. Schneider
- brooklyn, 1950, coney island avenue
- basically the dude as a kid had neighbors that had been in a concentration camp (branded) and he saw it when he got the rugula from the woman
- grounded his understanding of human relationships (inherent dignity)
- humans must be central to economics
- "human beings have value beyond measure" more appropriate word for non-profits - correct answer tax-exempt why do non-profit organizations contribute less to society? - correct answer they don't pay taxes which increases the taxes of those who do pay and it harms the economy essay 1: what is the difference between comparative advantage and absolute advantage? - correct answer comparative advantage: the lowest opportunity cost absolute advantage: the best at doing something essay 2: what happened in 1913 and why was that such an important year?
- correct answer Woodrow Wilson was inaugurated as President of the U.S. The federal reserve act was passed in 1913.
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