Outline the key differences between the Keynesian vs. Monetarist views on macroeconomics.
Keynesian = need government spending to stabilize economy and spend out of recession; Monetarist = spending won't work and simply leads to inflation
Oops!
Check
Okay!
Check
15
Briefly summarize Jean-Baptiste Say's views on economics.
supported the laissez faire approach and believed that ‘supply creates its own demand’
Oops!
Check
Okay!
Check
seesaw
Swap points!
Oops!
shark
Other team loses 25 points!
Okay!
shark
Other team loses 15 points!
Okay!
thief
Give points!
5
10
15
20
25
20
Using a PPC, draw out a scenario of "actual growth"
Must be fully labeled; PPC does NOT shift outward.
Oops!
Check
Okay!
Check
10
Using a concrete example, explain why consumers might not always act rationally.
Consumers' satisfaction affected by psychological biases (e.g. prices of wines)
Oops!
Check
Okay!
Check
15
Distinguish between Obama and Richard Burr’s views on the role of the government in managing the economy.
Obama = government spending to decrease unemployment, rejected the view that the government has no role; Burr says government spending money does not work!
Oops!
Check
Okay!
Check
15
Why are there opportunity costs?
They arise due to the need to make choices as there are scarce resources.
Oops!
Check
Okay!
Check
15
Explain why economics is considered a "social science".
Scientific methodology to build knowledge (scientific) + deals with human behavior (social)
Oops!
Check
Okay!
Check
15
Provide an example to illustrate how a good can be both considered a free and economic good under different circumstances.
E.g. seawater vs. water in a desert
Oops!
Check
Okay!
Check
thief
Give points!
5
10
15
20
25
star
Double points!
Okay!
shark
Other team loses 15 points!
Okay!
lifesaver
Give 25 points!
Oops!
10
Using an example, explain the opportunity cost that a private company might face when it comes to its daily operations.
The opportunity cost of funding a new product may be to expand into a new geographical location, assuming it's the best choice forgone.
Oops!
Check
Okay!
Check
thief
Give points!
5
10
15
20
25
star
Double points!
Okay!
fairy
Take points!
5
10
15
20
25
thief
Give points!
5
10
15
20
25
20
What is Pareto efficiency? How is it illustrated on the PPC?
A firm / economy that is operating on the curve is Pareto efficient - one cannot be better off without making another worse off.
Oops!
Check
Okay!
Check
15
Explain why the concept of scarcity is linked to the concept of sustainability.
Threats to sustainability arises due to scarce resources; if we used up scarce resources in the present day, future generations are unable to meet their needs.
