Econ Challenge

The magnificent seven

Amazon, Alphabet, Meta, Microsoft, Tesla, NVIDIA, Apple

Highest paid athlete in Detroit

Jared Goff

Average new car payment per month in the United States

$760

Current mortgage rates on a 30 year fixed rate (US)

6.16%

Largest issuer of credit cards

JPMorgan Chase

ROl stands for

Return on Investment

Collateral placed against property for unpaid debt

Lien

Hiring of relatives and friends for a position

Nepotism

The 3 'C's' of credit

Character, Capital/Collateral, Capacity

Legal process forcing sale of mortgaged property

Foreclosure

Time to pay credit card bill without finance charges

Grace Period

Maximum credit amount on a credit card

Credit Limit

APR stands for

Annual Percentage Rate

Number of corporations in the Dow Jones Industrial Average

30

Number of companies in NASDAQ

~3,300

FICO score represents

Creditworthiness (likelihood to repay debt)

FICO stands for

Fair Isaac Corporation

Investment with non-tax deductible contributions

Roth IRA

CD stands for

Certificate of Deposit

Mythical term for a startup valued over $1 billion

Unicorn

HELOC stands for

Home Equity Line of Credit

What is another name for high-yield bonds that are typically issued by companies with low credit ratings?

Junk Bonds

Biggest corporation in the world by market capitalization

Nvidia

Percentage of Americans who could cover a $400 bill with cash

63%

Factors affecting a credit score

Payment History 35%, Credit Utilization 30%, Length of Credit History 15%, Credit Mix 10%, New Credit 10%

FICO score range for excellent credit

800-850

Primary healthcare plan for people over 65

Medicare

Maximum taxable earnings limit for social security

$184,500

Difference between chapter 7 and chapter 11 bankruptcy

Chapter 7 is a Liquidation process. Chapter 11 is a reorganization/restructuring process

Economics term for buying and selling assets to exploit price differences

Arbitrage

First country to adopt cryptocurrency as legal tender

El Salvador

In 2023, which bank collapsed, making it the 2nd largest bank to fail?

Silicon Valley Bank

Average selling price for homes in Michigan

$270,000

Average selling price for homes in the United States

$405,000

NASDAQ stands for what?

National Association of Securities Dealers Automated Quotations

Current Chair of the Fed

Jerome H. Powell

Chair of the Fed from 2014-2018

Janet L. Yellen

Chair of the Fed from 2006-2014

Ben S. Bernanke

Chair of the Fed from 1987-2006

Alan Greenspan

Chair of the Fed from 1979-1987

Paul A. Volcker

Chair of the Fed from 1978-1979

G. William Miller

Chair of the Fed from 1970-1978

Arthur F. Burns

difference between FAANG and Magnificent 7

FAANG - Facebook, Amazon, Apple, Netflix, Google.

What is the difference between portfolio investment and direct foreign investment

Securities and financial assets vs one country to another for business interest

What does FDIC stand for and do

Federal Deposit Insurance Corporation, they insure deposits up to $250000

What does NAIRU stand for

Non-Accelerating Inflation Rate of Unemployment - unemployment rate that if falls below, there will be inflation.

What are Pigout taxes

A tax on activities that create negative externalities.

How does consumption and saving change as income increases

Both increase, but savings increase faster

What is VIX

VIX is the Chicago Board Options Exchange volatility index, which is a prediction of the volatility of the S&P 500. Calculated and disseminated in real-time (volatility index).

What are usury laws

Laws that set maximum interest rates lenders can charge.

What is the Taylor Rule

A monetary policy rule, developed by economist John Taylor, that suggests how central banks should set the discount rate. Based on economic activity and inflation.

Total college debt and average per debtor

1.7 trillion dollars total, average of 33,700 dollars per debtor.

Total credit card debt and average per debtor

Total credit card debt in the US is 1.28 trillion. The average per consumer is $6,500.

Difference between WTI and Brent Oil

WTI is a light sweet crude from Texas, Oklahoma, and North Dakota. Brent Oil is produced in the North Sea.

Michigan's #1 commodity

Milk

Michigan's #1 crop (revise)

Potatoes

What is the VIX

Volatility Index. Measures market volatility.

What are HEAL Jobs

Health, Education, Admin, Literacy.

What is the NEET Rate and what was its current and highest rate in the US

Measures proportion of people who are not employed, being educated, or being trained. 12.8% in 2025, highest was 18.5% in 2010.

2025 GDP growth rate

2.2%.

What is the World Bank's location and head

D.C, Ajay Banga.

What is the IMF's location and head

D.C, Kristalina Georgieva.

What is the Fed's location and head

D.C, Jerome Powell.

What is the difference between the World Bank and IMF

Long-term economic development vs financial stability.

Three most common types of business

1. Sole proprietorship 2. Partnership (general partnership, limited partnership, limited liability partnership) 3. Corporation.

What is the current national rate of unemployment in the U.S.

4.3%.

What is the current rate of unemployment in the state of Michigan

5.0%.

As income increases, what also increases

Savings and consumption.

What does FDIC stand for and what is it

Federal Deposit Insurance Corporation. Insures deposits of up to $250,000.

What is dead capital

Not legally recognized, can’t be exchanged for financial capital

What is the union participation rate in the U.S. as of 2025

10%.

What profession has the highest union participation rate

Teachers

What are the 12 Federal Reserve Banks

1. Boston, 2. New York, 3. Philadelphia, 4. Cleveland, 5. Richmond, 6. Atlanta, 7. Chicago, 8. St. Louis, 9. Minneapolis, 10. Kansas City, 11. Dallas, 12. San Francisco.

What is Vertical Equity

Vertical equity means that people in different income groups should pay different amounts or different percentages of their incomes as taxes. Also known as progressive taxing.

What are Giffen goods

Goods that demand rises as its price does.

S&P average price 2025

Close to $6500

Dow average price

Close to $45,000

How many open credit cards are in the US

631 million

U.S. labor force participation rate Q1 2026

62%.

What is the WTO and how many members does it have

World Trade Organization, 166 members.

What is the interest on subsidized loans

6.39%.

What percent of new cars are leased

24%

What percent of employee income is withheld for Social Security

6.2%

What is Michigan's tax rate

4.25%

What is the US's Nominal GDP per capita in 2025

$90,012

What was the US's trade deficit in 2025

$901.5 billion, 11.6% of total trade

What was the US's trade deficit in January of 2025

$131.4 billion

What is the term for an economic indicator that is only seen looking back

Lagging indicator

What economic theory suggests that the exchange rate between two currencies should equalize the price of a basket of goods in both countries

Purchasing power parity

What is the current goal Federal Funds Rate

3.5%

What is the term for lack of incentive to guard against risk where one is protected from its consequences (e.g., insurance)

Moral hazard

What is the term given to the sum of the unemployment and inflation rate

The misery index

What economic system is focused on increasing the flow of silver and gold into the home country

Mercantilism

What is the name for someone who enjoys the benefits of a system without paying for it

A free rider

What economic system allows businesses with government connections to gain unfair advantages over other businesses

Crony capitalism

What did the WTO replace

The GATT agreement — The General Agreement on Tariffs and Trade

Name of the essay outlining international trade and specialization

I, Pencil

What is the lowest wage at which a worker is willing to work called

A reservation wage

What are the US's net outlays for 2025

$7.01 trillion, or 23% of GDP

What does the PE ratio stand for

Price to earnings ratio — the price of a company's stock relative to the earnings per share