Jeopardy! Begin Stephen Mendoza (Period 2)

True/ False $100 $100 $100 $100 $100 $100 $200 $200 $200 $200 $200 Unit 1 Key Terms Unit 2 Key Terms Unit 3 Key terms Shifters Of Demand Shifters of Supply True/ False $100 $100 $100 $100 $100 $100 $200 $200 $200 $200 $200 $200 $300 $300 $300 $300 $300 $300 $400 $400 $400 $400 $400 $400 $500 $500 $500 $500 $500 $500

- $100 What is scarcity? C1-$100 What is, “The fact that resources are not unlimited and are not available in sufficient qualities to satisfy all the various ways a society wants to use them.”

- $200 What are the four factors of production? What is “Land-all resources that come from nature. Labor-the effort of workers. Capital-manufactured goods used to make other goods and services. Entrepreneurship- the effort of those that organize resources for production.”

- $300 What is the law of supply? C1-$300 What is, “The law that deals with the fact that the higher the price of a good or service, all other things equal, leads suppliers to supply a greater quantity of that good or service. It is illustrated as a direct or positive relationship.”

- $400 What is the law of demand? C1-$400 What is, “The law that deals with the fact that the higher the price for a good or service, all other things equal, leads people to demand a smaller quantity of that good or service. It is illustrated as an inverse or negative relationship.”

- $500 What is centrally planned economics? What is, “An economic system in which economic decisions are made by the state or government rather than by the interaction between consumers and businesses.”

- $100 What is GDP and what is its equation? C2-$100 What is, “The total value of all final goods and services produced in the economy during a given year. Equation: GDP=C+G+I+Xn”

- $200 What is the difference between Nominal and Real GDP? What is, “Nominal GDP is GDP calculated with the prices current in the year in which the output is produced, whereas Real GDP is adjusted for inflation because it is calculated using the prices of a selected base year.”

- $300 How is GDP per capita calculated? What is, “The ratio between GDP to the size of the population. It is equivalent to the average GDP per person. GDP per capita=(GDP/size of the population)”

- $400 What is the natural rate of unemployment? C2-$400 What is, “The unemployment rate that arises from the effects of frictional plus structural unemployment.”

- $500 What are the phrases of the business cycle? What is, “Expansionary(recovery), peak, contraction (recession), and trough.”

- $100 What are sticky wages? What is, “Nominal wages that are slow to fall even in the face of high unemployment and slow to rise even in the face of labor shortages.”

- $200 What is the crowding out effect? What is, “The event when the government funds to cover a deficit and the interest rate then increases and households and firms are “crowded out” of the market for loanable funds, in turn, decreasing consumer and investment spending.”

- $300 What is monetary policy? What is, “The central banks use of changes in the quantity of money or the interest rate to stabilize the economy.”

- $400 What are Automatic Stabilizers? What is, “Government spending and taxation rules that cause fiscal policy to be automatically expansionary when the economy contracts and automatically contractionary when the economy expands.

- $500 What is the name of the economic gap when aggregate output is below potential output? What is, “Recessionary gap.”

- $100 How will the demand curve for Pepsi shift if Obama openly states that he prefers Coca-Cola over Pepsi? C4-$100 What is, “The demand curve for Pepsi will decrease/ shift to the left.”

- $200 How will the demand curve representing better transportation in Santa Ana shift if the population triples? C3-200 What is, “The demand for better transportation will increase/ shift the right.”

- $300 How will the demand curve for Pepsi shift if the price of Coca-Cola decreases? What is, “The demand curve for Pepsi will decrease because consumers can satisfy their wants for soda with the cheaper alternative (substitute).”

- $400 If people realize that in the future, college educations will be valued more, then how will the demand curve representing better colleges shift? C3-$400 What is, “The demand curve for better colleges will increase.”

- $500 If the price of Nike shoes increase, how will the demand curve for Nike shoes shift? What is, “No change; changes in price don’t shift the curve. It only causes a movement along the curve.”

- $100 How will an increase in steel affect the supply curve for automobiles? What is, “The supply curve will shift to the left/ decrease because if the availability of inputs decrease, then so will the supply curve because their relationship is direct.”

- $200 How will the supply curve for coffee beans react if all Starbucks closed? What is, “The supply curve for coffee beans will shift leftward/ decreasing because there is less of an incentive to supply because the number of sellers and potential buyers decreased.”

- $300 How will the supply curve representing computers shift if the technology used to produce them increased? C4-$300 What is, “The supply curve will shift to the right because better engineering can make it easier to supply computers.”

- $400 How will the supply curve for Coca-Cola be affected if the government decides to tax the Coca-Cola Company? C4-$400 What is, “The supply curve will shift to the left because government action is a shifter of supply, and if it decides to tax a company, they will be less likely to supply.”

- $500 How will the supply curve for coffee beans shift if the price of coffee beans increased by 10%? C4-$500 What is, “No change. Changes in price don’t shift the curve; it only causes movement along the curve.”

- $100 The Government makes a $300 Social Security payment to a retired person. This is included in GDP. C4-$100 What is, “False.”

- $200 Consumer Spending is the factor most heavily weighted in GDP. What is, “True.”

- $300 Full Employment is not defined as zero unemployment because frictional and structural employment exist even with zero cyclical unemployment. C4-$300 What is, “True.”

- $400 If aggregate demand increases and aggregate supply decreases, the price level will increase, but the real output is indeterminate. C4-$400 What is, “True.”

- $500 If the MPC of a country is 0 - $500 If the MPC of a country is 0.9 and there was an initial increase in consumer spending of $4 million, the total AD will increase by $40 million. C4-$500 What is, “True.”