SSE Economics Test Prep | Baamboozle - Baamboozle

Provide a definition for demand.

THE AMOUNT OF A GOOD OR SERVICE THAT CONSUMERS ARE ABLE AND WILLING TO BUY AT VARIOUS POSSIBLE PRICES DURING A SPECIFIED TIME PERIOD.

Provide a definition for supply.

THE AMOUNT OF A GOOD OR SERVICE THAT PRODUCERS ARE ABLE AND WILLING TO SELL AT VARIOUS POSSIBLE PRICES DURING A SPECIFIED TIME PERIOD.

Explain what is occurring with supply and demand if there is a surplus.

The supply of a good is higher than the demand of the good.

Explain what is occurring with supply and demand if there is a shortage.

The demand for a good is higher than the supply of the good.

How do corporations and stock fit together

Corporations are owned by many people who own stock within the company.

What is a stock?

A stock is a portion of a company you can purchase.

What does it mean if someone tells you to consider the cost of living before moving?

Consider the difference in prices between two cities.

Explain what inflation is.

Rise in the general price level of goods and services.

What is the ideal inflation rate according to the government?

2%

What is the ideal unemployment rate according to the government?

4-5%

You are considered unemployed if you meet which three criteria?

1. Willing to work 2. 16 or older 3. Looking for a job but can't find one.

George can no longer find work as a CD designer since music is now digital. What type of unemployment is this?

Structural

Polly decided to stay at home when she had her first child. What type of unemployment is this?

Not in the labor force

Martha quits her job. Her husband accepted a new job in a different city and they are moving. What type of unemployment is this?

Frictional

Mark loses his job when there is a stock market crash. Which type of unemployment is this?

Cyclical

The Soviet Union, Communist Russia, had which type of economy before collapsing? Market, Command, Traditional or Mixed?

Command

Which type of economy do we have in the United States? Traditional, command, market, or mixed?

Mixed

True or False: A traditional economy tends to stay the same and follow what a culture has done throughout history.

True

How would the U.S. change if we had a pure market economy?

All decisions would be made by businesses. The government could not restrict them.

Provide an example of a situation where you would see a mixed economy.

This could be anything as long as the company makes most decisions but the government has some power to limit what the company can do.

Name the four types of economic systems (Hint: Not capitalism, communism, etc...)

Market, Command, Traditional, Mixed

Explain the differences between market and command economies.

Market: Businesses and owners make most decisions with little government interference. Command: Government leaders make all business decisions.

If making a restaurant, the construction workers would be which type of input?

Labor

If making a puzzle, the machines to cut the pieces would be which type of input?

Capital

If making a computer, the glass and metal used in it would be which type of input?

Land

Anything used to make a good is called what?

Input

What is scarcity?

The reality we don't have enough money, time, or resources to get everything we want.

If you are studying Economics, what are you studying?

How we as humans use limited resources when we have unlimited wants.

What is opportunity cost?

The choice you give up when you have to decide between two or more choices.

True or False: The public school system is an example of communism in America

False: It is an example of socialism: Tax money is being used to support all citizens.

True or False: The United States government has some elements that could be considered socialist.

True