Final Dodgerdy

Round 1: The Basics 1.What are the four factors of production Human Resources, Natural Resources, Capital Resources, entrepreneurship 2. Define economics Study of Scarcity; study of how people make choices with unlimited wants, but limited resources 3. What is GDP? Gross Domestic Product –the value of all goods and services produced within a nation’s borders in one year’s time 4. What is inflation? Rising prices, falling value of the dollar – happens when too much money is in circulation 5. Name the three types of economic systems Command, traditional, market/free enterprise/capitalism Bonus: What is the purpose of the EU, WTO, and NAFTA – Make trade easier

Round 2: Supply and Demand 1.What is the law of supply? As price rises, quantity produced rises; as price falls, quantity produced falls (direct relationship) 2. What is the law of demand? As price falls, quantity produced rises; as price rises, quantity produced falls (indirect relationship) 3. Draw a graph of supply and demand and locate equilibrium 4. Name 2 of the 5 non-price factors that shift demand Income, preferences, substitute/compliment goods, number of consumers, expectations 5. Name 2 of the 5 non-price factors that shift supply Taxes/subsidies, resource costs, number of producers, alternate products, expectations Bonus: what causes a movement? Change in price D S P Q

Round 3: Business 1.What is liability? Which type of business has limited liability? Liability is your responsibility to pay back debt. Corporations have limited liability (can only lose the money you invested in the stock, nothing more) 2. Owning a franchise allows you to… Sell a parent companies product using their name/logos; must pay royalties fees in return 3. Monopolies are illegal because… They limit competition and sell a lower supply at a higher price 4. Name one type of market with many buyers and many sellers Perfect competition or Monopolistic competition 5. What is a labor union? A group of employees that collectively bargain with management to achieve better hours, wages, working conditions Bonus: what act allowed labor unions to collectively bargain? Wagner Act

Round 4: Fiscal Policy 1.Fiscal policy refers to the use of taxing and spending to stabilize the economy 2.What does the phrase budget deficit mean? The government spent more money than it brought in, in tax dollars 3. What is the difference between a progressive and a proportional tax? A progressive tax increases the percentage taxed as income increases (Example a family making 50k is taxed at 5%, family making 100k is taxed at 10%) A proportional tax, taxes everyone the same percentage, but dollar amount increases as income increases (Example a family making 50k is taxed at 10%, family making 100k is taxed at 10% - family A will pay 5,000, family B will pay 10,000) 4. Provide an example of a regressive tax Sales tax – those making less money are paying out a greater portion of their income 1.What 5 programs is a majority of the federal budget spent on? Social Security, Medicare, Medicaid, Defense, Interest on our debt Bonus: who creates fiscal policy? President and Congress

1.What are the 3 functions of money? Medium of Exchange, Store of Value, Standard of Value 1.The regulation of the supply of money and credit is known as… Monetary policy 1. Banks work on the assumption that not all creditors will… Come for their money at the same not  meaning it’s available to lend 4. What are the 3 tools of the Fed? Open market operations (sale/purchase of bonds), discount rate (interest rate), reserve requirement (how much the bank must store versus how much it can lend) 5.List 3 things the Fed can do to restrict the money supply Sell bonds, raise interest, raise reserve requirements Bonus: what is the purpose of the FDIC? Insure your money in the bank Round 5: Monetary Policy