Jeopardy Basic Concepts Measuring Performance Income and Price Financial Sector Wild Card Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final Jeopardy

$100 Question from Basic Concepts What is the difference between microeconomics and macroeconomics?

$100 Answer from Basic Concepts Microeconomics- individuals, businesses Macroeconomics- aggregate

$200 Question from Basic Concepts What phrase means “all things held constant”?

$200 Answer from Basic Concepts Ceteris paribus

$300 Question from Basic Concepts List five determinants of demand.

$300 Answer from Basic Concepts Population Future Expectation Tastes/Advertising Income Price of Related Goods

$400 Question from Basic Concepts What is the primary determinant of elasticity of supply?

$400 Answer from Basic Concepts Time

$500 Question from Basic Concepts What are the components of the invisible hand?

$500 Answer from Basic Concepts Self interest = Motivation Competition = Regulation

$100 Question from Economic Performance What are the four components of GDP and which makes up the largest portion of total GDP?

$100 Answer from Economic Performance Y = C + I + G + NX Consumption

$200 Question from Economic Performance What is the equation for calculating the GDP deflator?

$200 Answer from Economic Performance GDP deflator = Nominal Real X 100

$300 Question from Economic Performance What are 5 of the core indicators of development?

$300 Answer from Economic Performance Per capita GDP Life expectancy Infant mortality rate Literacy rate Labor force Energy consumption Consumer goods

$400 Question from Economic Performance What is “COLA”?

$400 Answer from Economic Performance Cost of living allowance

$500 Question from Economic Performance What are three problems with the CPI?

$500 Answer from Economic Performance Substitution bias New goods Quality change

$100 Question from Income and Price What is on the vertical and horizontal axis of the aggregate demand/supply model?

$100 Answer from Income and Price V- Price level (CPI) H- Output (Real GDP)

$200 Question from Income and Price Why does the AD curve slope downward?

$200 Answer from Income and Price Wealth effect Interest-rate effect Exchange-rate effect

$300 Question from Income and Price What will cause a shift in the LRAS curve?

$300 Answer from Income and Price FOP + T

$400 Question from Income and Price What is stagflation? GRAPH it!!

$400 Answer from Income and Price A period of falling output and rising prices.

$500 Question from Income and Price What is the impact on price level and output if there is a stock market crash? Explain and demonstrate.

$500 Answer from Income and Price LRAS YNYN P Y AD 1 SRAS 1 SRAS 2 AD 2 Decrease in price level, output is unchanged

$100 Question from Financial Sector What is the difference between stocks and bonds?

$100 Answer from Financial Sector Stocks- equity finance Bonds- debt finance

$200 Question from Financial Sector What are 5 examples of financial intermediaries?

$200 Answer from Financial Sector Banks, savings and loans, credit unions, mutual funds, finance companies, life insurance companies, pension funds

$300 Question from Financial Sector The three characteristics of every bond.

$300 Answer from Financial Sector coupon rate par value maturity

$400 Question from Financial Sector What is the rule of 70?

$400 Answer from Financial Sector 70/x (rate) = time to double

$500 Question from Financial Sector Five main types of bonds.

$500 Answer from Financial Sector savings, treasury, municipal, corporate and junk bonds

$100 Question from Wild Card What is crowding out?

$100 Answer from Wild Card Decrease in investment that results from government borrowing.

$200 Question from Wild Card What are two types of mutual funds?

$200 Answer from Wild Card Indexed Actively managed

$300 Question from Wild Card Which school of economic thought had the following assumptions: 1.Pure competition exists. 2.Wages and prices are flexible. 3.People are motivated by self-interest. 4.People cannot be fooled by money illusion.

$300 Answer from Wild Card Classical

$400 Question from Wild Card Who said the following: “If supply creates its own demand, why are we having a worldwide depression?”

$400 Answer from Wild Card John Maynard Keynes

$500 Question from Wild Card The government sets _________________ below equilibrium in order for them to be binding on the market.

$500 Answer from Wild Card Price ceiling

Final Jeopardy List all ten of Mankiw’s principles. Provide a specific example for each.

Final Jeopardy Answer 1.People face trade-offs 2.The cost of something is what you give up to get it 3.Rationale people think at the margin 4.People respond to incentives 5.Trade can make everyone better off 6.Markets are usually a good way to organize economic activity 7. Governments can sometimes improve market outcomes 8.A country’s standard of living depends on its ability to produce 9.Prices rise when the government prints to much money 10.Society faces a trade-off between inflation and unemployment