 Which segment letter represents a recessionary period? XX  Which segment letter represents a trough? YY

 At what 1900 value would the dollar have been at in 1970?  About.20 cents

 In how many years was the world real GDP BELOW 4%?  17 years

 What does the movement from a to a' on the graph represent?  a.an increase in demand  b.an increase in quantity demanded  c.a decrease in demand  d.a decrease in quantity demanded

 What is the demand for movie videos at a price of $14?  What will happen to demand if the prices is moved from $14 to $16?

 What would cause the movement shown in this chart? (Think complementary items!) A decrease in the cost of cameras

 What would cause the movement shown in this chart?  An increase in taxes  Shows a change in what?  supply

 What letter represents the demand of CDs at $15?

 What cost would support a supply of 400 movies?  If prices moves from $18 to $16 what happens to supply?

 What is this PPF representing?  Economic growth  What would cause a move from B to D?  Increased productivity

 What would cause a move from A to E?  Factories that are available but idle

Supply Schedule for CDs Price per CD Quantity supplied (in millions) $10100 $12300 $14500 $16700 $18900 $201,100  What would a supply schedule curve look like from this schedule?

 The business cycle since World War II has been characterized by:  extended expansions alternating with brief recessions.  The stock market crash of 1929:  marked the beginning of the Great Depression in 1929

 Determining GNP  GDP+all payments received by U.S. from outside U.S.-payments to foreign owned resources in the U.S.

 Consumer Price Index:  Index that reports on price changes for approximately 90,000 goods and services  Increased prices=  Demand for fewer products  Complements:  Items that are impacted by the cost of a related item  (i.e.: as the price of milk rises, the demand for cereal decreases)

 Demand schedule  Listing of various amounts demand at a particular price that might work in the market  Substitute effect:  Consumers willingness to replace a costly item with a less expense item

 Census:  Survey of people in U.S. taken every 10 years  Census info…  Baby Boomers:  People born between 1946 and 1964  Since colonial period  U.S. has trended towards smaller households  Population “center” of U.S.:  Missouri

 Economic growth benefits government:  by expanding tax base  U.S. economy can be defined as:  Modified private enterprise  Market Economy:  Does not provide for everyone's basic needs  Attempt at Economic Equity:  Minimum wage

 Purpose of government in a command economy?  Make major economic decisions  SEC:  Securities and Exchange Commission  Regulates the sale of stocks

 Money that has an alternative use:  Commodity money  Money loses value when:  Becomes too plentiful  FDIC:  Protects our savings  For money to have value it must be:  Portable, Durable, and Divisible

 nation's central bank  Federal Reserve System  anything a government decrees to be money  fiat money  rush by depositors to withdraw their funds from a bank  run on the bank  anything that serves as a medium of exchange and a store of value  money  paper currency that was printed with green ink on both sides  greenback

 worth that can be expressed in dollars and cents  value  tools, equipment, machinery, and factories used in the production of goods and services  capital  condition of not having enough resources to produce all the things people want  scarcity  cost of the next best alternative use of money, time, or resources when one choice is made rather than another  opportunity cost  people with all their efforts, abilities, and skills  labor

 manufactured goods that are used to produce other goods  capital good  basic requirement for survival  need  way of expressing a need that leads to a preference for some goods over others  want  work that is performed for someone  service  market where productive resources are bought and sold  factor market

 Federal program of disability and retirement benefits that covers most working people  Social Security  organized way in which a society provides for the wants and needs of its people  economic system  income that does not increase even if prices go up  fixed income  market economy in which private citizens own the factors of production  capitalism  privilege that entitles people to own their possessions  private property rights