ECONOMICS REVIEW GAME

1. Capitalism is also referred to as ________ economics, meaning “free to do” or “hands off”.

2. When supply and demand intersect on a graph, consumers and producers have found the _______ _______.

A _______ is a decline in economic activity lasting at least 6 months. 3. A _______ is a decline in economic activity lasting at least 6 months.

4. A period of increasing stock values over a period of time is called a ______ market. A period of decreasing stock values over a period of time is called a ______ market.

5. When government spending is in excess of what is collected in revenues (when the government spends more than it makes) it is known as _________ _________.

6. Target just ordered a shipment of 500 new, wool sweaters. Fashion magazines have declared cashmere to be the hot fabric of the season. What will happen to the price of Target’s wool sweaters? Why?

______ is the founder of Capitalism. 7. ______ is the founder of Capitalism.

8. The _________ controls our nation’s money supply and ensures that all banks have required money reserves on hand.

_____ is an increase in the overall price level of goods/services. 9. _____ is an increase in the overall price level of goods/services.

10. The _______ ________ Industrial Average is a stock that combines 30 large corporations.

Economic Stagnation (slowdown) + High Inflation = _____________. 11. Economic Stagnation (slowdown) + High Inflation = _____________.

12. What are the 3 factors of production? 1. _______ 2. _______ 3. _______ 4. ENTREPRENEURSHIP

13. The problem that all people face in that we have unlimited wants but limited resources is called _____.

14. Which economic system is based around the poorer working class overthrowing the wealthy owners of production to create a classless society?

What is the difference between Microeconomics and Macroeconomics? 15. What is the difference between Microeconomics and Macroeconomics?

16. A new advancement allows Apple to make iPhones at the same pace for half the price. What will happen to the price of iPhones? Why?

Approximately, what is the current U.S. National debt? 17. Approximately, what is the current U.S. National debt?

18. The result that occurs when the quantity supplied at a specific price exceeds the quantity demand (there is a higher level of supply than there is demand) is called a ________.

_________ is usually credited with founding Communism. 19. _________ is usually credited with founding Communism.

20. When a point is graphed in the space BELOW the equilibrium price, a _______ occurs.

Key Laissez-Faire Equilibrium Point/Price Recession Bull Market, Bear Market Deficit Spending Go down, they are now lower in demand Adam Smith Federal Reserve Inflation Dow Jones

Key 11. Stagflation Land, Labor, Capital Economics, Wants Vs. Needs, Budget Communism Micro=individuals, businesses Macro=National/Global Decrease, Increased supply 17-18 Trillion Surplus Karl Marx Shortage