Econ 200 Module 1

The Declaration of Independence was established in what year?

1776

The Articles of Confederation was established in what year?

1781

The Constitution was ratified in what year?

1789

The Bill of Rights was established in what year?

1791

What is a Republic?

A government in which citizens rule through elected representatives

Who were the only people allowed to vote according to the Constitution?

White Male Property Owners

Slaves were counted as ___ of a person

3/5

_ were selected by state legislatures.

Senators

What is the fundamental idea of economic problems?

Humans have unlimited wants

Why is having unlimited wants a problem?

There are limited resources

What is the economic problem? (One word that best defines economics?)

SCARCITY

One word answer to scarcity?

Choices

What we give up when we make a decision is __

Opportunity Cost

Explicit Cost

a cost that involves money

Implicit Cost

a non-money related opportunity cost

What is a good?

Something that creates utility for us (it makes us happy)

What is an Economic Good?

Things that are scarce and we are willing to pay for them.

Another word for Disutility

Unhappy

What is an Economic Bad?

Something you're willing to pay to get rid of.

What is Rational?

To do what you think is best for you.

Standard Economic Theory Includes...

Utility, Economic Goods, Maximization, Rational Behavior

Someone who brings the Land, Labor, and Capital together is called a _?

Entrepreneur

What is the key to economic behavior?

Incentives

What is Natural Law?

Theory that claims humans are born with certain morals that guide behaviors.

What is Just Price?

Idea where price of goods should be equivalent to production cost of that good.

Someone who heavily believes in trades is known as a _?

Mercantilists

In the mind of a mercantilists, who rules the economy?

The government

Who said "Every Man has a property in his own self"?

John Locke

Who said "We hold these truths to be self-evident..."

Thomas Jefferson

Someone who is liberal is...

Open minded, not bounded by tradition

Adam Smith believed in _ trade.

Voluntary

Adam Smith felt that for markets to work right there must be _, _, _.

Competition, Information, and Freedom

Demand is _ related to price.

Inversely

Supply is _ related to price.

Directly

What is Equilibrium?

A point/price/quantity where consumers and sellers are satisfied.

What happens to equilibrium when the wages of workers rise?

Prices increase, and the quantity decreases.

A lack of competition can result in a

Monopoly

Public Goods are...?

A good or service that the government needs to provide or else we wouldn't have it.

What is a Moral Hazard?

You enter a contract with someone and they are hiding something from you

This class (or a similar one) is required by state law in Nevada for all college graduates.

True

The US ran on the _____ before the Constitution.

Articles of Confederation

The USA is a(n) _____.

republic

The ______ Constitution is the oldest in use in the world.

US

The one word that best describes the economic problem is ______

Scarcity

If you go to a concert, spend $200, and make your best friend mad at you for not going with them, the opportunity cost of the concert is:

both the $200 and your friend's anger

An economic good:

is a good which someone is willing to pay for

TRUE or FALSE

To an economist, rational behavior means that you do what is in your own self-interest, what is best for you.

True

TRUE or FALSE

If we increase taxes on business we would expect equilibrium price to fall and quantity sold to fall.

False

TRUE or FALSE

The same philosophy that is in Adam Smith's Wealth of Nations originating with John Locke is also the philosophy behind the Declaration of Independence.

True