Economics

Students are to complete the following for EACH credit:

• Terms Do all terms with example for terms

• Notes 5 sentences​ PER Video​. Do all video notes

• Questions Answer the questions completely

• Test Take test*. Test can be found at: https://testmoz.com/class/16400

All test passwords are: osc

Total pages (with teacher test):

6-10 pages of work per unit

Unit 1: Introduction to Economics

Important Questions:

What is the term for...

1. something like air, food, or shelter that is necessary for survival; ex. drinking water or "basic" medical

2. the study of how people seek to satisfy their needs and wants by making choices; "the study of choice"; importance = to predict trends in the future for the majority of the people

3. physical objects such as clothes or shoes; created by the producer

4. actions or activities that one person performs for another; created by the producer

5. limited quantities of resources to meet unlimited wants; more than one use; the problem which economics addresses; unlike shortage, this always exists because goods and services are a limited quantity

6. a situation in which a good or service is unavailable; unlike scarcity, this may be short term or long term

7. three groups of resources that are used to make all goods and services; land, labor, and capital; controlled by the consumer

8. the effort that people devote to a task for which they are paid

9. any human-made resource that is used to create other goods and services

10. the most desirable alternative given up as a result of a decision; "choosing is refusing"; the choice you chose not to do

**Take exam at https://testmoz.com/class/16400 during class session.

*Hand in ALL work to teacher with test results on the front.

Work should be 5-10 pages when completed for full credit.

Unit 2: How Markets Work

Important Questions:

What is the term for...

1. Consumer willingness and ability to buy products

2. Consumers buy more of a good when its price decreases and less when its price increases.

3. Economic rule stating that if two items satisfy the same need and the price of one rises, people will buy the other.

4. The change in an individual's or economy's income and how that change will impact various quantities of a good or service demanded.

5. A table that shows the relationship between the price of a good and the quantity demanded.

6. A table that lists the quantity of a good all consumers in a market will buy at various prices.

7. Change in demand is when the entire demand curve shifts up or down such as when the entire economy demands more candy right before Halloween: it has nothing to do with price. A change in quantity demanded occurs when a change in price occurs so the demand only shifts for that particular price such as when a new laptop goes on sale for $150 and was originally $200, the demand would increase.

8. Consumer income, prices of substitute and complementary goods, consumer tastes and preferences, consumer speculation, and number of buyers in the market all influence demand

9. A good that consumers demand less of when their incomes increase.

10. What is Elasticity of Demand ?

11. What is Elastic Demand ?

12. Tendency of suppliers to offer more of a good at a higher price.

13. The total amount of money spent on costs of materials, labor, and taxes, to manufacture economic goods and services.

14. The marginal product of a variable resource increases as each additional unit of that resource is employed.

15. Define Fixed Costs vs Variable Costs.

**Take exam at https://testmoz.com/class/16400 during class session.

*Hand in ALL work to teacher with test results on the front.

Work should be 5-10 pages when completed for full credit.

Unit 3: Business and Labor

Important Questions:

What is the term for...

1. What is a production function?

2. Marginal product of labor are

3. What law is marginal product of labor consistent with?

4. The increase in a firm's total revenue resulting from hiring an additional unit of labor or another variable resource.

5. MRP = P x MP means what?

6. A curve showing different quantities of labor employers are willing to hire at different wage rates; also equal to MRP of labor

7. What is derived demand?

8. What law is supply curve of labor consistent with?

9. What happens when wage rates are high?

10. Accumulation of education, training, experience, and health that enables a worker to enter an occupation and be productive.

11. A form of demand-side economics that encourages government action to increase and decrease demand and output.

12. the idea that govt. spending and tax cuts help an economy by raising demand

13. Keynes believe that 2 things needed to happen to end the Great Depression

14. What does Fiscal Policy mean?

15. Recession (decline in economic prosperity) / Depression (Long Recession) govnt should...

Govt. should increase spending OR Govt. should decrease taxes

**Take exam at https://testmoz.com/class/16400 during class session.

*Hand in ALL work to teacher with test results on the front.

Work should be 5-10 pages when completed for full credit.

Unit 4: Money, Banking, and Finance

Important Questions:

What is the term for...

1. funds are transferred from people who have an excess of available funds to people who have a shortage

2. any financial claim or piece of property that is subject to ownership

3. debt security that promises to make payments periodically for a specified period of time

4. cost of the borrowing or the price paid for the rental of funds

5. share of ownership in a corporation and is a claim on the earnings and assets of the corporation

6. institutions that borrow funds from people who have saved and in turn make loans to others

7. major disruption in financial markets that are characterized by sharp declines in asset prices and the failures of many financial and non financial firms

8. production of goods and services

9. percentage of the available labor force unemployed

10. periods of declining aggregate output

11. relates changes in the quantity of money to changes in aggregate economic activity and the price level

12. the average price of goods and services in an economy

13. continual increase in the price level that affects individuals, businesses, and the government

14. rate of change of the price level, usually measured as a percentage change per yea

15. the management of money and interest rates by the central bank

**Take exam at https://testmoz.com/class/16400 during class session.

*Hand in ALL work to teacher with test results on the front.

Work should be 5-10 pages when completed for full credit.

Unit 5: Government and the Global Economy

Important Questions:

1. Conventional monetary policy is a tool used by the Fed to stabilize the economy and promote economic recovery.

2. Why would the Fed choose to reduce the federal funds rate nearly to zero in an effort to support the recovery?

3. Why did the Fed undertake large-scale purchases of Treasury and government sponsored enterprise (GSE) mortgage-related securities?

4. How did purchasing Treasury and GSE mortgage-related securities stimulate the economy?

5. How did declining house prices affect the economic recovery?

6. What were some structural factors in the housing market that prevented a quick recovery?

7. Increases in asset prices in the stock and real estate markets that are driven well above their fundamental economic values by investor psychology

8. The simultaneous failure of many banks, as during a financial crisis

9. A lending spree when financial institutions expand their lending at a rapid pace

10. Financial insurance contracts that provide payments to holders of bonds if they default

11. A major disruption in financial markets that is characterized by sharp declines in asset prices and the failures of many financial and non-financial firms

12. The process of economies opening up to flows of capital and financial firms from other nations

13. Forced, rapid sales of assets to raise needed funds

14. Values of assets based on realistic expectations of their future income streams

15. Mortgages for borrowers with less than stellar credit records

**Take exam at https://testmoz.com/class/16400 during class session.

*Hand in ALL work to teacher with test results on the front.

Work should be 5-10 pages when completed for full credit.