05 alpha
Societies marked by this value system exhibit acquisitiveness, also known as conspicious consumption. One study showing capitalist societies' increase in this noted that over 7% of Americans would kill somebody for 3 million dollars. Give the term for the valuing of, and the desire to accumulate, physical goods.
ECONOMIC MATERIALISM
One law from this field was named for Sir Thomas Gresham, but was stated earlier by Nicolaus Copernicus. One scholar in this field predicted the fallout of the Treaty of Versailles [ver-SIGH] and wrote The General Theory of Employment, Interest and Money. What field of social science comes in micro- and macro- varieties?
ECONOMICS
When this economics concept is true for a firm, the firm's long-run average cost of production curve slopes downward. That means the average of cost producing one unit of output decreases as the number of units of output increases. Name this economics concept, which arises mainly due to specialization of labor and capital.
ECONOMIES OF SCALE
This concept from neoclassical economic theory is important to the markup rule, as well as the Prebisch-Singer hypothesis. One common usage of this term is to express the relationship between price and demand. Identify this economic concept, which refers to how much one variable changes in response to another.
ELASTICITY
This tool of economic warfare is often used for political purposes. It can be broad, such as forbidding all exports to a particular nation, or narrow, forbidding the export of only one product. What tool did the U.S. impose against Cuba for more than 50 years, and Arab nations against the U.S. in 1973?
EMBARGO
This law of economics, set forth in 1857, states that the income elasticity of food is between zero and one. It holds that while people may spend more on food as their income rises, they will spend a smaller proportion of income for food. What is this law, named for a German statistician?
ENGEL'S LAW
In microeconomics, this phenomenon occurs where supply of an individual good and demand for that good intersect, yielding the economically efficient quantity and price. Identify this point, toward which free markets tend to move because price regulates buying and selling and because price adjusts when buying and selling plans do not match.
EQUILIBRIUM
A positive example of this would be the government purchasing a fleet of electric cars and the resulting increase in mechanics and servicing stations for that type of vehicle. Name these costs or benefits from an economic activity that affect somebody other than the individuals participating in the economic activity and are not reflected in prices.
EXTERNALITY
Ludwig von Mises [MEE-zes] argued that this economic concept arises from a lack of "clear personal property definition." Negative examples would include pollution and the burying of toxic waste. Name this cost or benefit of doing business that affects a party that did not choose to have that cost or benefit.
EXTERNALITY
Positive examples of this economic term include education and vaccination, while negative examples include pollution and congestion. Identify this term, which refers to a cost or benefit that falls on an economic agent other than the agent producing or consuming a good or service.
EXTERNALITY
This economic consequence can benefit society, as does home renovation, but too little is produced and consumed. It can harm society, as does pollution, but too much is produced and consumed. What economic consequence is a relationship that is not easily controlled by price, and for which no one pays?
EXTERNALITY
4. Monies or assets set aside until certain conditions or met or to provide a fund from which insurance and taxes can be made in connection with a mortgage.
Escrow
8. A tax, similar to a sales tax, imposed on some goods, especially luxuries and cars
Excise Tax
56. a criminal offense, which occurs when a person obtains money, behavior, or other goods and/or services from another by wrongfully threatening or inflicting harm to his person, reputation, or property.
Extortion
This political philosophy, whose name means "bundle," exalts the nation--and sometimes a certain race--above the individual. A centralized government headed by a dictator imposes severe economic and social restrictions, and oppresses any opposition. Name this governmental system associated with Spain's Franco and Italy's Mussolini.
FASCISM [FASH-iz-uhm]
This economic system is based on the granting of land in return for services, including militaryservice. It was abolished in England in the 17th century, but continued in France for another hundred years. What economic system prevailed in Europe between the 5th and 12th centuries?
FEUDAL SYSTEM Accept word forms
This early economist believed that land was the source of all wealth, and proclaimed the morality of laissez-faire policies. He was the leader of the first systematic school of political economic thought. What French economist was the leader of the Physiocrats?
FRANCOIS QUESNAY [keh-NEH, kay-NAY]
This economist argued that artificially low interest rates could lead to the formation of bubbles, with detrimental effects on the economy as a whole. His works include "Why I Am Not a Conservative" and The Road to Serfdom, which advocated against centrally planned economies. Identify this Austrian, who won the 1974 Nobel Prize in Economics for his work regarding business cycles and monetary policy.
FRIEDRICH AUGUST VON HAYEK [HIGH-uk]
This economic thinker wrote The Condition of the Working Class of England in 1844. After Karl Marx's death, he edited portions of Marx's Das Kapital [dahs kah-pih-TAHL]. Identify the German-English philosopher and economist best known for coauthoring The Communist Manifesto with Marx in 1848.
FRIEDRICH ENGELS
Insures deposits in member banks up to $100,000. Pays money back to banks if they are robbed.
Federal Deposit Insurance Corperation FDIC
The current agency that regulates business practice
Federal Trade Commission FTC
37. A twelve-month period for which an organization, such as a government or corporation, plans the use of its funds.
Fiscal year
59. process of making or modifying objects, signatures, or documents, with the intention to deceive.
Forgery
7. 1694-1774 French economist. He was the undisputed leader of the Physiocrats, the first systematic school of economic thought. Among its tenets were the economic and moral righteousness of laissez-faire policies and the notion that land was the ultimate source of all wealth.
Francois Quesnay
9. The freedom of private businesses to operate competitively for profit with minimal governmental regulation.
Free Enterprise
24. The production and exchange of goods and services without interference from the government or from monopolies.
Free Market
Said "We are all Keynesians now"
Friedman
One example of this economic theory is the Prisoner's Dilemma, which is the non-zero-sum type. What mathematical tool, developed in 1944 by John von Neumann [NOY-mon], tries to model an individual's behavior when outcomes also depend on the choices of others?
GAME THEORY
One famous example of this branch of economics is the so-called Prisoners' Dilemma, in which two prisoners can manipulate each other's sentence based on their answers to police questioning. Identify this branch of economics, which looks at the world in terms of winners and losers, and is useful in explaining economic behaviors such as auctions, bargaining and voting.
GAME THEORY
This international economic body was created in the late 1940s at the UN Conference on Trade and Employment. Identify this international organization that was replaced by the World Trade Organization in 1993, after the Uruguay Round of talks.
GATT Accept: GENERAL AGREEMENT ON TARIFFS AND TRADE
There are three ways of determining this: the expenditure approach, the income approach, and the product approach. Under the expenditure approach, this measure of a country's economic well-being equals the sum of private consumption, gross investment, government spending, and exports minus imports. Name this economic term, which represents the market value of all final goods and services produced within geographical borders over a given period of time.
GDP Accept: GROSS DOMESTIC PRODUCT
This phenomenon is addressed by the quantity theory, the Keynesian [KANES-ee-un] theory, the "cost-push" theory, and the structural theory. The latter holds that, in developing countries, a continuous upward pressure on prices is caused by continuous downward pressure on the international value of the nation's currency. Name this economic phenomenon where the price of goods rises over time, and money becomes devalued.
INFLATION
This economic argument is often made in developing countries that want to be less dependent on industrialized nations. In response, the developing nation may pass a tariff, or import duty, to lessen foreign competition. Identify the argument that a nation's developing industries need protection while they establish themselves.
INFANT INDUSTRY ARGUMENT
Milton Friedman said this economic concept "is always and everywhere a monetary phenomenon." The most spectacular example of this concept can be seen in the 1970's when OPEC sharply increased oil prices. Identify the economic phenomenon, which is generally expressed by an index number, and is defined as a rise in prices across an economy.
INFLATION
The "structural" and "quantitative" models are two methods for evaluating this economic concept. It occurs when an excess supply of currency drives down the overall value of that currency. Name this economic situation that represents a general increase in the price of goods and services.
INFLATION
The Bureau of Labor Statistics uses the Consumer Price Index to calculate the rate of change of this economic indicator. Low interest rates, which pump money into an economy, often raise this value. Identify this economic indicator, generally defined to be the rise of prices over time.
INFLATION
One source of this two-word concept, which has been criticized by Joseph Stiglitz and Noam Chomsky, was Richard Cantillon's "An Essay on Economic Theory." It explains how producers and consumers who act in their own self-interest will lead to an overall benefit to society. Name this economic metaphor introduced in Adam Smith's The Wealth of Nations.
INVISIBLE HAND
In 1961, JFK appointed this economist as US Ambassador to India, where he served for three years. In a 1958 work, he criticized America's lack of government spending, and focus on a consumer-driven economy. Name this Canadian-American economist, who wrote The Affluent Society.
JOHN KENNETH GALBRAITH
Ragnar Frisch is given the credit for first using this economics term in its modern sense. In the 1960s, it referred to a small industry which formulated models and sold them to government and big businesses to help them predict future trends. What is the name for the studies which created models of the economy based on observations, statistics, and mathematical principles?
ECONOMETRICS
In Notes on Aging, this economist wrote about what he called the Still Syndrome, when older people hear such questions as, "Are you still well?" He was politically active, serving as the national chairman of Americans for Democratic Action. What Canadian-born economist noted a decline in the competitiveness of the U.S. economy in The New Industrial State?
JOHN KENNETH GALBRAITH
Politically active, this economist was national chairman of Americans for Democratic Action, and was appointed ambassador to India by President Kennedy. His works include American Capitalism: The Concept of Countervailing Power and The New Industrial State. What Canadian-born economist is best known for his 1958 work The Affluent Society?
JOHN KENNETH GALBRAITH
This economist was the editor of Fortune magazine in the mid-1940s, and ambassador to India under President Kennedy. He wrote The Anatomy of Power and American Capitalism: The Concept of Countervailing Power. What U.S. economist advocated spending more on public programs and less on consumer goods?
JOHN KENNETH GALBRAITH
This economist was the editor of Fortune magazine in the mid-1940s, and an ambassador to India under President Kennedy. He wrote The Anatomy of Power and American Capitalism: The Concept of Countervailing Power. What U.S. economist advocated spending more on public programs and less on consumer goods?
JOHN KENNETH GALBRAITH
This twentieth-century economist wrote works titled The Liberal Hour and The Anatomy of Power. He was a leading proponent of public spending, and was a liberal who chaired the group Americans for Democratic Action. What American economist also wrote the works The New Industrial State and The Affluent Society?
JOHN KENNETH GALBRAITH
under President Kennedy. He wrote The Anatomy of Power and American Capitalism: The Concept of Countervailing Power. What U.S. economist advocated spending more on public programs and less on consumer goods?
JOHN KENNETH GALBRAITH
17. In one of his books, this economist compared America's post-WWII private success with its poor public sector economy. A Harvard professor, he was a known post-Keynesian economist and social liberal. Give this author of The Affluent Society.
JOHN KENNETH or KEN GALBRAITH
In one of his books, this economist compared America's post-WWII private success with its poor public sector economy. A Harvard professor, he was a known post-Keynesian economist and social liberal. Give this author of The Affluent Society.
JOHN KENNETH or KEN GALBRAITH
6. 1908-2006 Canadian economist. He probably wouldn't make this list if contributions to economic theory were all that mattered; as it is, his liberal popular writings like The Affluent Society and The New Industrial State with their emphasis on public service and the limitations of the marketplace ensure his coming up again and again.
John Kenneth Galbraith
4. 1883-1946 English economist. He is most famous for The General Theory of Employment, Interest and Money 1936 , which judged most of classical economic analysis to be a special case hence "General Theory" and argued that the best way to deal with prolonged recessions was deficit spending.
John Maynard Keynes
The desire to accumulate tangible goods
Materialism
Deals with behavior of individual economic units
Microeconomics
the study of the individual parts of the economy and the actions of individuals and firms
Microeconomics
2. 1912-2006 American economist. Conservative thinker famous for his advocacy of monetarism a revision of the quantity theory of money in works like A Monetary History of the United States, 1867-1960 1963 . He is strongly associated with the ideals of laissez-faire government policy.
Milton Friedman
Countries that have it are Iceland, France, and Hong Kong
Mixed Economy
The theory or practice of controlling the supply of money as the chief method of stabilizing the economy.
Monetarism
40. The exclusive control by one company of a service or product.
Monopoly
26. A legal agreement that creates an interest in real estate between a borrower and a lender and commonly used to purchase homes.
Mortgage
50. an acronym for North American Free Trade Agreement
NAFTA
10. 1806-1873 British economist and social philosopher. He is mainly known today in economic circles for his work extending the ideas of Ricardo in Essays on Some Unsettled Questions of Political Economy 1844 for example, the relationship between profits and wages but also for exhaustively examining the necessity of private property in his Principles of Political Economy 1848 .
John Stuart Mill
Despite its name, this law used in economics does not refer to monetary units. It is based on the idea that economic resources cannot always be completely used for alternative goods. What economic law states that the lack of flexibility in resources results in a greater sacrifice of one good, in order to obtain more units of another good?
LAW OF INCREASING COSTS
Named after its American developer, this economic model generally has cumulative percentage of income on its y-axis and cumulative percentage of population on its x-axis. Identify this economic model, which economists use to show graphically the distribution of income and wealth in a society.
LORENZ CURVE
39. A national holiday in the United States and that is observed on the first Monday in September
Labor Day
43. An organization of workers formed to promote collective bargaining with employers over wages, hours, fringe benefits, job security, and working conditions.
Labor Union
54. a group of workers formed to get its members better pay and better working conditions
Labor Union
Proponents of this macroeconomic theory believe in rational expectations, but not that prices will change quickly enough to achieve full employment. They also believe that economic and sociological forces keep markets from clearing during an economic downturn. Identify this theory that takes its name from an eminent twentieth-century economist.
NEO-KEYNESIAN [KANES-ee-un] ECONOMICS Accept: NEO-KEYNESIANISM [KANES-ee-un-iz-um]
Created a free trade zone in 1994 linking Canada, the United States, and Mexico
North American Free Trade Agreement NAFTA
He established the Money and Banking Workshop in 1953, and published A Theory of the Consumption Function in 1957. Identify this economist who disagreed with many Keynesian [KANES-ee-un] assumptions and was awarded the Nobel Prize in Economics for 1976.
MILTON FRIEDMAN
He was a fierce critic of what he referred to as a "naive Keynesian" theory. This conservative thinker is known for writing A Monetary History of the United States, 1867-1960. Who is this American economist, a 1976 Nobel Prize winner, best known for his advocacy of monetarism?
MILTON FRIEDMAN
This economist used evolutionary economics to propose that people would be more likely to buy luxury goods to show economic power, an action he called conspicuous consumption. Who is best known for a book that explains the division of society between those who exploit and those who produce, The Theory of the Leisure Class?
THORSTEIN VEBLEN
In a September 2012 New York Times column, this man accused the Republican party of blocking any legislative attempt at economic recovery, and then blaming Democrats for not fixing the economy. He is best known for his work regarding geographic disparity in the distribution of wealth. Name this 2008 Nobel laureate in economics, the author of Conscience of a Liberal.
PAUL ROBIN KRUGMAN
This phrase indicates that each beneficiary should receive an equal part of the will. Economic and statistical reports often use it in place of the phrase "for each person." Name this Latin phrase translating as "by heads."
PER CAPITA
In a market characterized by this economic phenomenon, each firm must accept a set market price for the goods it produces. This results in horizontal marginal revenue and demand curves. What economic condition is characterized by many identical firms producing identical goods, with no restrictions on firm entry or exit?
PERFECT COMPETITION
In this work, the author writes: "Wealth is not without its advantages and the case to the contrary, although it has often been made, has never proved widely persuasive." After reviewing the work of earlier economists, the author discusses whether many goods are produced to satisfy needs created by advertising. Name this 1958 work by John Kenneth Galbraith.
THE AFFLUENT SOCIETY
In this work, which popularized the phrase "conventional wisdom," the author urges American society to fight economic inequality. It advocates investment in infrastructure, such as parks, transportation, and education. What is this 1958 John Kenneth Galbraith work?
THE AFFLUENT SOCIETY
In this work, which popularized the term "conventional wisdom," the author examines the relationship among production, consumption, and advertising, and addresses America's economic inequality. Its author expanded on many of its claims in his next work, The New Industrial State. What is this 1958 book by John Kenneth Galbraith [GAL-breyth]?
THE AFFLUENT SOCIETY
His 1904 work titled The Theory of Business Enterprise dealt with the difference between making goods and making money. He coined the term "pecuniary emulation" in a work that examines how the rich spend their money to display their wealth. Name this economist, who wrote The Theory of the Leisure Class.
THORSTEIN VEBLEN
One phrase coined by this economist was pecuniary emulation — or keeping up with the Joneses. In his best-known book, he tried to apply the theory of evolution to modern economic life. What U.S. economist also, in his work The Theory of the Leisure Class, introduced the phrase "conspicuous consumption"?
THORSTEIN VEBLEN
This economist coined the phrase "pecuniary emulation" — essentially, keeping up with the Joneses. His best-known economic work received literary attention, although many read it as satire rather than science. Identify the economist who wrote The Theory of the Leisure Class.
THORSTEIN VEBLEN
This economist coined the phrases pecuniary emulation and conspicuous consumption, the latter being the idea that people spend money on goods to show their economic power. Through his University of Chicago connections he was the editor of The Journal of Political Economy. Who was this American economist who wrote The Theory of the Business Enterprise and The Theory of the Leisure Class?
THORSTEIN VEBLEN
This economist is famous for combining the ideas of Darwinian evolution with his new institutionalist approach to economic analysis. Although he was in favor of a state owned industry, his ideas did not combine with those of socialism or Marxism. Name this man famous for his book The Theory of the Leisure Class.
THORSTEIN VEBLEN
This American combined the Darwinian evolutionary perspective with his new "institutionalism" approach to economic analysis. In his best known work, he introduced the concept of a group whose only economic activity was "waste." Name this author who coined the term "conspicuous consumption" in The Theory of the Leisure Class.
THORSTEIN VEBLEN [THOR-steen VEB-luhn]
The international form of this five-letter economic action is described by the general equilibrium Hecksher-Ohlin model. The action occurs between countries, because some nations have an easier time producing certain products than other countries. Name this action that occurs in a market and that can produce a deficit if imports exceed exports.
TRADE
The genesis of this American economic policy was supposedly a curve sketched on a napkin. That curve, named for Arthur Laffer, was applied through a general lessening of taxes on corporate entities, capital gains, and the wealthiest tax brackets. Identify this oft-criticized economic policy of the Reagan administration, which postulated that the "prosperity" of the wealthy would eventually make its way to the poor.
TRICKLE-DOWN ECONOMICS Accept: SUPPLY-SIDE ECONOMICS or REAGANOMICS
32. A government tax on imports, designed either to raise revenue or to protect domestic industry from foreign competition.
Tariff
written by Karl Marx, encouraged workers to unite and take over production; government distributes goods and services to all
The Communist Manifesto
In On the Principles of Political Economy and Taxation, David Ricardo says that this economic term "is not the measure of exchangeable value." The marginal version of this term describes the additional benefit one would gain by purchasing another unit of a product. Name this economic term, which measures the satisfaction or usefulness of a product.
UTILITY
Rational choice theory states that consumers consume goods that have the greatest marginal value of this quantity per dollar. The total amount of this value increases at a decreasing rate for each additional unit consumed, a reflection of diminishing marginal returns. Identify this economic principle that refers to the satisfaction derived from consuming a good or service.
UTILITY
The movement of money, products, and resources between households and businesses
circular flow
Two Major Economic Systems
command, market
a cost that does not change, no matter how much of a good is produced
fixed cost
10=What tax, similar to a sales tax, is imposed on some goods, especially luxuries and cars?
10A=Excise Tax
16=What name is given to the freedom of private businesses to operate competitively for profit with minimal governmental regulation?
16A=Free Enterprise
1=What name is given to the original amount of money that has been loaned to an individual or business?
1A=Principal
20=What kind of security is issued by a corporation or public body and usually carries a fixed rate of interest and a set date, called its maturity date, for redemption of the principal?
20A=Bond
21=In economics, what term refers to merchandise; wares; tangible products that satisfy human wants?
21A=Goods
22=What is Latin for "Let the buyer beware."
22A=Caveat emptor
25=Which two-word phrase that begins with the letter I refers to the unlawful practice of using information that comes from a source within a business to trade on the stock market?
25A=Insider trading
26=Which term that begins with the letter I refers to a sustained increase in the average prices of all goods and services?
26A=Inflation
27=What colorful term is used to describe stocks of high-quality, financially sound corporations?
27A=Blue Chip
29=What animal is associated with a stock market characterized by falling prices?
29A=Bear
30=What is the economic term for a possession that can be turned into cash to cover liabilities or anything of value?
30A=Asset
32=Also called GNP, what term refers the monetary value of all a nation's goods and services within a particular period of time?
32A=Gross National Product
33=What name is given to the situation in which a written check exceeds the funds on deposit to cover it?
33A=Overdraft
36=What are the units of stock that represent ownership in a corporation?
36A=Shares
37=What term describes the sale of merchandise to retailers rather than directly to the public?
37A=Wholesale
38=What is the exchange of goods or services for other goods or services, rather than for money?
38A=Barter
39=What adjective describes an asset in the form of money, or one that can be converted quickly into money?
39A=Liquid asset
41=What economic system is run by the government which tries to distribute wealth equally to everyone?
41A=Socialism
45=What colorful name is given to the illegal buying and selling of goods above the price fixed by a government?
45A=Black Market
46=What name is given to the twelve-month period for which an organization, such as a government or corporation, plans the use of its funds?
46A=Fiscal Year
47=What name is given to the exclusive control by one company of a service or product?
47A=Monopoly
49=What do we call money used to finance the purchase the necessary components of production, such as machines, or the machines themselves for a business?
49A=Capital
51=What do we call property or its equivalent that a debtor deposits with a creditor to guarantee repayment of a debt?
51A=Collateral
5=What name is given to additional monies paid on a loan other than the principal?
5A=Interest
65=What is the name of a narrow street in lower Manhattan considered to be the historical heart of the Financial District because it was the first permanent home of the New York Stock Exchange?
65A=Wall Street
69=A fundamental principle of what political theory is that people should work according to their capacity and receive according to their needs?
69A=Communism
6=What name refers to the income of local, state, or national governments?
6A=Revenue
72=What economic system is based on a free market for goods and services and private control of production and consumption?
72A=Capitalism
7=Also called an unfavorable balance of trade, what is the two-word term for the condition that exists when the value of what a country imports exceeds the value of what it exports?
7A=Trade Deficit
90=For what does the acronym NYSE stand?
90A=New York Stock Exchange
91=Identify this economic theory that when investors and businesses flourish their prosperity will ultimately find its way down to middle and lower income people.
91A=Trickle Down Economics
1723-1790 Scottish philosopher and economist. Though he wrote on nearly every subject of moral and social philosophy, he is basically remembered as the author of An Inquiry into the nature and causes of the Wealth of Nations 1776 and as the creator of the metaphor of the "invisible hand." This work more-or-less singlehandedly founded the Classical school of economics.
Adam Smith
Who was the father of capitalism? Where was he from?
Adam Smith, Scotland
8. 1842-1924 English economist. His magnum opus, 1890's Principles of Economics, introduced the notions of consumer surplus, quasi-rent, demand curves, and elasticity, all fundamental concepts in introductory macro- and microeconomics.
Alfred Marshall
One example of this economic phenomenon is the effect of drinking an additional cup of coffee. While the first few cups of coffee are effective at boosting energy, subsequent cups become less and less effective. Identify this general rule of economics, which states that a tendency exists for the marginal product of the next unit of a factor of production to be less than the marginal product of the previous factor.
DIMINISHING MARGINAL RETURNS TO FACTORS
3. An index published by the government each month of prices for a representative sample of goods and services.
Consumer Price Index
53. a business owned by a group of people called shareholders
Corporation
7. The average cost of the basic necessities of life, including food, shelter, and clothing.
Cost of Living
8=What term refers to the average cost of the basic necessities of life, including food, shelter, and clothing?
Cost of living
2. In Political Discourses, this man illustrated that Britain could not enhance its wealth by hoarding gold from exports. His attacks on mercantilism influenced John Locke, as did his belief in the government's role to protect private property. Name this philosopher known for his radical empiricism.
DAVID HUME
Although he did not put forth a complete system of economics, he did introduce ideas that were the basis of classical eighteenth-century economics. He maintained that wealth consists of commodities, not money, and that a nation cannot continue exporting only to acquire bullion. What English philosopher and economist wrote Essays Moral and Political?
DAVID HUME
Discourses. He argued that commodities, not money, were the true measure of wealth, and that low interest rates result from booming trade. What economist also argued that nations could not continue to export to acquire bullion?
DAVID HUME
His philosophical studies led him to economics, which he addressed in his 1752 work, Political Discourses. He argued that commodities, not money, were the true measure of wealth, and that low interest rates result from booming trade. What economist also argued that nations could not continue to export to acquire bullion?
DAVID HUME
This philosopher and economist may have influenced Adam Smith, who was his literary executor. Although he did not propose a complete theory of economics, he did introduce ideas central to classical economics. Who argued that wealth is based on commodities, not money, and that no nation can export simply to receive bullion?
DAVID HUME
This philosopher discussed how the title events tended to happen in "ignorant" and "barbarous" nations and times in the section, "Of Miracles." He is known for stating that desire overpowers reason in the human mind. What British economist wrote A Treatise of Human Nature and An Enquiry Concerning Human Understanding?
DAVID HUME
This philosopher known for his empiricism also turned his attention to economics. He argued that the amount of money in circulation should depend on the amount of goods being marketed. What philosopher and economist also argued that no nation can export products only to acquire bullion?
DAVID HUME
This politician, philosopher, historian, and economist theorized that continually exporting finished goods in return for gold would not enhance a nation's wealth. Which Scottish economist concluded that economic freedom is necessary for a country to obtain political freedom?
DAVID HUME
A member of Parliament, he amassed a fortune through his ability as a financier and a speculator. He wrote Principles of Political Economy and Taxation, in which he said that the labor theory of value was not exact, but could be used as an approximation. What economist is best known for his creation of the ideas of comparative advantage and his namesake iron law of wages?
DAVID RICARDO
Early in the nineteenth century this economist observed that one cause of inflation in England was the issuing of excessive bank notes by the Bank of England. He opposed England's Corn Laws, which regulated the export and import of wheat, decreasing profits for manufacturers. What English economist developed the so-called Iron Law of Wages?
DAVID RICARDO
He broke with his Jewish father over religion, became a Unitarian, and made a fortune in the stock market in his twenties in the 1790s. He became interested in the study of economics after reading Wealth of Nations in 1799, publishing his first work in 1810. Name this self-taught British economist, who formulated the Iron Law of Wages.
DAVID RICARDO
He showed how comparative advantage provided a justification for unfettered international trade. Perhaps his best-known work is Principles of Political Economy and Taxation. Identify this British economist, known for putting forth his "Iron Law of Wages."
DAVID RICARDO
His first published work added fuel to the controversy over the Bank of England's policy of not paying its notes in gold. An 1815 essay about the Corn Laws argued that country gentlemen profited from tariffs on grain imports, while manufacturers saw losses. Identify this British economist who developed the Iron Law of Wages.
DAVID RICARDO
In one work, this English economist is known for expressing that trade is mutually beneficially between two parties, even if one party is more productive than the other in all areas. This man concluded that profits vary inversely with wages in Principles of Political Economy and Taxation and established the idea of comparitive advantage. Who is this economist known for his Iron Law of Wages?
DAVID RICARDO
This businessman and economist made a fortune speculating on the outcome of the battle of Waterloo. He proposed that countries should focus on producing goods with which they are most competitive, called the theory of comparative advantage. What economist's theories are the foundation of Iron Law of Wages?
DAVID RICARDO
This economist believed that it was useless to try to improve the real earnings of workers. His first published work was The High Price of Bullion in 1810, and he also wrote the 1817 book Principles of Political Economy and Taxation. Name the economist known for his Iron Law of Wages.
DAVID RICARDO
This economist developed a theory of rents, which states that landowners, rather than farmers, benefit from productive land. His belief in comparative advantage forms the basis for most modern arguments favoring free trade. Name this early monetarist, the author of Principles of Political Economy and Taxation.
DAVID RICARDO
This economist earned his wealth by investing in British securities prior to the French defeat at Waterloo. This classicist is best known for a theory which promoted international trade based on relative opportunity costs for the two nations involved. Name this British economist who proposed the law of comparative advantage.
DAVID RICARDO
This economist used the swapping of English cloth for Portuguese wine to demonstrate one principle. He developed the theory of comparative advantage. Name the economist who found that wages remain near subsistence level, which is known as his Iron Law of Wages.
DAVID RICARDO
This man gathered a personal fortune while he was a member of Parliament, a businessman, a financier, and a speculator. He argued that there is a mutual benefit to trade, even if one group is more productive than the other. Name this British economist who came up with the ideas of comparative advantage and the law of diminishing returns.
DAVID RICARDO
The idea that tax cuts will not stimulate consumer spending, because consumers will save their money for the inevitable tax hike, is this man's namesake "equivalence." In a landmark work, he proposed that two countries would always benefit from trade if their opportunity costs were different. Identify this British economist whose 1817 Principles of Political Economy and Taxation introduced the idea of comparative advantage.
DAVID RICARDO Accept: RICARDIAN EQUIVALENCE
This economic inefficiency is also known as allocative inefficiency and excess burden. It can be caused by monopoly pricing, price ceilings, and price floors. What is the term for an equilibrium that is not Pareto optimal, because a policy causes the market to be inefficient?
DEADWEIGHT LOSS
This economic issue caused a massive drop in support for the "Tea Party" in 2011. In January 2012, this number topped 16 trillion dollars. Identify this economic figure, which is essentially the United States' credit limit.
DEBT CEILING Not: NATIONAL DEBT or equivalents
This phenomenon has always had a negative effect on employment and output. It does not, however, necessarily decrease all prices, such as union wages. What economic phenomenon is defined as a decrease in the prices of goods and services?
DEFLATION
The law of this economic concept is violated by Giffen goods, which people consume more of as the price increases. Its curve nearly always slopes downward from left to right. What economic concept is often paired with supply?
DEMAND
When plotted on a graph, the curve of this economic concept is usually downward-sloping. Its namesake law states that a consumer will buy more of a good when the price decreases, and less when it increases. What economic term represents the willingness to buy a particular commodity at a given point of time?
DEMAND
Two-word answer. This political and economic system tries to create a high degree of social equality while preserving individual freedom. Under what system does a democratic people, through their government, manage basic industry, banking, communication, and transportation?
DEMOCRATIC SOCIALISM Accept: SOCIALIST DEMOCRACY
5. 1772-1823 English economist best known for Principles of Political Economy and Taxation, which introduced more-or-less modern notions of comparative advantage and its theoretical justification for unfettered international trade. He also put forth the so-called "Iron Law of Wages".
David Ricardo
22. Money, goods, or services owed by an individual, firm, or government to another individual, firm, or government.
Debt
51. sale of goods made by one nation to another at less than the price of the domestic market
Dumping
12. The units of stock that represent ownership in a corporation.
Shares
6. Property or its equivalent that a debtor deposits with a creditor to guarantee repayment of a debt.
Collateral
The government controls the economy
Command economy
67. a political theory that people should work according to their capacity and receive according to their needs
Communism
23. Someone who purchases a good for personal use.
Consumer
35. A tax added to an existing tax.
Surtax
68. type of tax added to an existing tax
Surtax
16. In Marxism it refers to those who control the means of production and do not live directly by the sale of their labor.
Bourgeoisie
65. the refusal to buy products as a way to bring social or political pressure for change
Boycott
19. A market, especially a stock market, characterized by rising prices
Bull Market
Examples of this economic policy include statutory tax breaks and increases in unemployment benefits. Identify this economics term, which is defined to be fiscal policy to moderate GDP done without explicit action by the government.
AUTOMATIC STABILIZERS
5. This man's theory of compensating wage differentials states that undesirable jobs pay higher wages to attract employees. He rejected mercantilism, arguing that countries should base their wealth on their production and commerce levels, an idea that grew into the GDP. Identify this champion of the division of labor, the invisible hand, and classical economics in The Wealth of Nations.
ADAM SMITH
Early in his career, this political economist was a professor of logic at Glasgow University. He posited that a country's citizens would prosper in a free trade system through a process he called the "invisible hand." Which political economist wrote An Inquiry into the Nature and Causes of the Wealth of Nations in 1776?
ADAM SMITH
Scholars say this social philosopher's best-known work, which deals with economics, is mainly part of his theme of historical evolution. His first work, The Theory of Moral Sentiments, was published in 1759. Identify the British author best known today for the "Invisible Hand" and The Wealth of Nations.
ADAM SMITH
This economist's best-known book is as much a work on historical evolution as economics. That work expanded on ideas from an earlier work, The Theory of Moral Sentiments. What philosopher wrote The Wealth of Nations?
ADAM SMITH
This economist's best-known book is as much a work on historical evolution as economics. That work further developed ideas in an earlier work, The Theory of Moral Sentiments. What philosopher wrote The Wealth of Nations?
ADAM SMITH
This man's teacher, Doctor Francis Hutcheson, was a key figure in the Scottish Enlightenment, especially studies in moral philosophy. Name this student of Hutcheson who, after writing on moral philosophy, would go on to publish his ideas on free market capitalism and laissez-faire [leh-say-FER] economics in his book The Wealth of Nations.
ADAM SMITH
This man's theory of compensating wage differentials states that undesirable jobs pay higher wages to attract employees. He rejected mercantilism, arguing that countries should base their wealth on their production and commerce levels, an idea that grew into the GDP. Identify this champion of the division of labor, the invisible hand, and classical economics in The Wealth of Nations.
ADAM SMITH
Gary Becker, the 1992 Nobel Prize winner in economics, cited this man, along with Milton Friedman, as a primary influence. He clearly explained concepts such as demand curves, elasticity, consumer surplus, and quasi-rent. Name this English economist, known for his Principles of Economics.
ALFRED MARSHALL
This economist helped to create the school of neo-classical economics by determining that the output and price of a product are determined by both supply and demand. He was also the first economist to develop the concepts of Price Elasticity of Demand and Consumer Surplus. Name this British economist, whose best known work is Principles of Economics, which stated since demand falls when price increases, the Demand Curve will slope downward from left to right.
ALFRED MARSHALL
Published during the start of the Industrial Revolution, this book is considered a fundamental work in classical economics, and touches on such subjects as the division of labor, the use of money, and free markets. Name this work, published in 1776, and written by Scottish economist Adam Smith.
AN INQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF NATIONS
This work actually continues a philosophical thesis its author introduced in The Theory of Moral Sentiments. It addresses the question of how the inner struggle works in history itself. Identify this 1776 work, a classic of economics, by Adam Smith.
AN INQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF NATIONS
In this economic process, a trader might buy a contract for gold in Chicago and sell one for gold in New York, where the price is higher. The process therefore makes the market trade more efficiently. What term is used for profiting from differences in prices for the same commodity or security in two or more markets?
ARBITRAGE [AHR-bih-trahzh]
A possession that can be turned into cash to cover liabilities or anything of value.
Asset
17. The examination by an outside party of the accounts of an individual or corporation.
Audit
This economic condition can come into existence voluntarily or involuntarily. A certain TV boss thought he could enact it by announcing it dramatically to his co-workers at his office. Into what state does a firm or individual fall if they are unable to pay creditors what is owed?
BANKRUPTCY
Just before this colorful day, economist Irving Fisher proclaimed that "stock prices have reached what looks like a permanently high plateau." The number of stocks traded on this day set a record that was not broken for almost 40 years. What colorful day saw the Dow Jones Industrial Average fall more than 12 percent, one of the worst stock market crashes ever seen in the U.S.?
BLACK TUESDAY
This term is the English form of a word coined by French economist Vincent de Gournay [vahn-SAHN duh gore-NAY] in the eighteenth century. It refers to the administrative division of assignments with an organization or government, or to the resulting inefficiency of such a system. The etymology of what word, taken literally, means "governed by the desk"?
BUREAUCRACY Accept word forms
18. The exchange of goods or services for other goods or services, rather than for money.
Barter
20. A market, especially a stock market, characterized by falling prices
Bear Market
71. the rejection of an applicant's membership in a private organization or the effort to unfairly prevent someone out of organizations
Black Ball
33. The illegal buying and selling of goods above the price fixed by a government.
Black Market
70. the name given to the date, October 24, 1929, the first day the Stock Market crashed
Black Thursday
The last day the Stock Market crashed; the beginning of the Great Depression
Black Tuesday
57. the extortion of money by a threat to reveal criminal conduct or embarrassing information
Blackmail
5. A term used to describe stocks of high-quality, financially sound corporations.
Blue Chip Stock
62. colorful name given to manual laborers
Blue Collar Workers
Adam Smith, in his Wealth of Nations, designated two types of this: fixed and circulating. In classical economics, it is one of the factors of production, besides land and labor. Give this term defined as "money used to finance the purchase of the means of production."
CAPITAL
Despite popular usage, this term does not technically include money, stocks, and bonds, because these are not productive resources. Instead, it includes items such as buildings, tools, and machines. Identify this factor of economic production, symbolized K.
CAPITAL
This economic term differs from income, in that it is a stock, while income is a flow. In economics, it is generally considered to refer to real instead of financial assets. What type of economic resource consists of things that can be used to produce goods and services, and includes people, education, buildings, and equipment, not just money?
CAPITAL
In this economic model, an oligopoly [ol-ih-GOP-uh-lee] is able to set a monopoly price for its product. The model represents the best possible outcome for the oligopolist [ol-ih-GOP-uh-list], as it allows firms to squeeze maximum profit from a market by colluding to lower production and increased prices. Identify this type of economic entity, of which OPEC is a modern example, defined as a combination of firms that act as if they were a single firm.
CARTEL
66. In purchasing, these initials stand for Cash on Delivery
COD
similar efforts. It began about 1500, but after World War Two saw a steep decline, often as the result of wars of liberation. Under what policy did Europe, the U.S., and Japan conquer and exploit large areas of the world?
COLONIALISM Accept word forms
In this kind of economic system, prices do not act as signals to increase or decrease production. The advantage of such an economy is that the government can mobilize resources quickly in times of national emergency. In what kind of economy are the means of production publicly owned, with a central authority in control of economic activity?
COMMAND ECONOMY
One example of this two-word concept is the outsourcing of technical support to India by large American computer companies. It is based on the belief that the opportunity costs of producing a certain good varies between nations. What two-word economic concept is often used as an argument for specialization and for free trade?
COMPARATIVE ADVANTAGE
This feature of U.S. economics was first published in 1921 and is still released monthly by the Bureau of Labor Statistics. Give the name of this method of measuring the price change of the vast number of goods and services that are purchased by households.
CONSUMER PRICE INDEX Accept: CPI
In the U.S., this index is generally based at 100 for the years 1982 to 1984. It is most commonly calculated by using a weighted arithmetic [ar-ith-MET-ick] mean of price relatives. What economic index shows the cost of living based on changes in prices?
CONSUMER PRICE INDEX Accept: CPI, RETAIL PRICE INDEX
This type of criteria was established by the Maastricht [MAH-strict] Treaty to try to prevent dissimilarities in exchange rates and inflation rates in the period leading up to the creation of the European Monetary Union. What term refers to the tendency of two economies to become more similar?
CONVERGENCE
In microeconomic theory, only the prospective type of this economic concept matters in making investment decisions. The marginal kind is the charge in producing one more good. Name this value of money that has been used to produce something.
COST
During an economic boom, this type of unemployment is low, while in an economic downturn, the amount is high. The natural employment rate is defined as the rate of unemployment in an economy when this type of unemployment is absent. What type of unemployment arises and disappears due to fluctuations in the overall strength of the economy?
CYCLICAL UNEMPLOYMENT
Keynesian [KANES-ee-un] economics tries to moderate this type of unemployment through stimulation during recessions and limitations on economic growth during booms. It accounts for the high rate of unemployment America is currently experiencing. Identify the type of unemployment defined as the level of unemployment due to the business cycle.
CYCLICAL UNEMPLOYMENT
21. Money used to finance the purchase the necessary components of production, such as machines, or the machines themselves for a business
Capital
61. an economic system is based on a free market for goods and services and private control of production and consumption
Capitalism
Which economic system is based on individual profit?
Capitalism
2. Latin for "Let the buyer beware." It means that a customer should be cautious and alert to the possibility of being cheated.
Caveat emptor
73. sometimes called CD's, these are bonds issued by Banks to individual investors
Certificates of Deposit
60. a term is used in real estate and accounting to designate the loss of value of buildings, equipment, and other property
Depreciation
This model in economics seeks to consider all sectors of an economy at one time, taking into consideration both direct and indirect effects and cross-market effects. Name this model whose most notable proponent was Leon Walras [lay-AWN vahl-RAH].
GENERAL EQUILIBRIUM MODEL OR THEORY
This word originally denoted the Jewish quarter of a city, and comes from the name of an island near Venice. Which word now refers to "a quarter of a city in which members of a minority group live, especially because of social, legal, or economic pressure"?
GHETTO [GET-oh]
A high value of this economics term indicates economic inequality, while a low value indicates parity. What value quantifies the difference between a Lorenz [LOH-rents] curve and the line of absolute equality, and yields a metric that can be compared across economies and time?
GINI COEFFICIENT [GHEE-nee or JEE-nee]
Two-word answer required. This monetary system lasted from 1870 to about the end of World War One. Arguing against it in his presidential campaign speeches by referring to it as a "cross", William Jennings Bryan opposed it. Name this economic system that uses a certain precious metal to determine the value of currency.
GOLD STANDARD
The United States replaced this economic measure with a nearly identical one in 1991. The new measure, however, does not include the income U.S. residents receive from foreign investments. What economic measure is based on the market value of all products and services created by a nation for a specific period?
GROSS NATIONAL PRODUCT Accept: GNP
Harvard professor, post-Keynesian, social liberal. Wrote "The Affluent Society"
Galbraith
13. In economics, this term refers to merchandise; wares; tangible products that satisfy human wants.
Goods
52. a form of political corruption whereby someone profits personally from the public budget.
Graft
74. also called GNP, this term refers the monetary value of all a nation's goods and services within a particular period of time
Gross National Product
Modern examples of this economic phenomenon include Argentina during the 1990s and Zimbabwe [zim-BOB-way] under Robert Mugabe [moo-GAH-beh]. A prominent historical example comes from Weimar [VIGH-mahr] Germany. What economics term means a rapid and uncontrollable increase in prices over a short period of time, most often fueled by excessive printing of paper money?
HYPERINFLATION Not: INFLATION
Company that owns stakes in various other companies
Holding company
This economic metaphor represents the concept that the individual, when maximizing his own gains, benefits society in a free market. First proposed in 1759 in The Theory of Moral Sentiments, it was not linked to free markets until Smith wrote The Wealth of Nations in 1776. What is this economic metaphor that describes the self-regulating behavior of a marketplace and that states policies attempting to raise social welfare were less effective than the regular acts of individual people?
INVISIBLE HAND
The "bargaining" theory of these is based on the relative power of both parties. David Ricardo proposed the idea which states that these will always trend towards the absolute minimum necessary for survival. What economic entities, the subject of that "Iron Law," did some politicians suggest capping at $500,000 for CEOs of companies that receive government bailouts?
IRON LAW OF WAGE S Accept: SALARY, PAY, and other equivalents
First promulgated by David Ricardo, this economic principle is based upon the population studies done by Thomas Malthus. What principle basically states that wages will trend, over the long term, toward the minimum wage necessary for survival?
IRON LAW OF WAGES
This law of subsistence theory developed out of economic work on wages in a laissez faire [les-ay FAIR] system. Its originator argued that the price of labor was not necessarily fixed, but others were more pessimistic. Identify this economic law about workers' income formulated by David Ricardo.
IRON LAW OF WAGES
He was the U.S. ambassador to India under JFK, to whom he also served as an economic advisor. He analyzed the causes of the Great Depression in his work The Great Crash. Name this economist whose other works include The New Industrial State and American Capitalism, a Canadian-American proponent of liberal policies.
JOHN KENNETH GALBRAITH
58. a formal written accusation drawn up by a prosecutor and made by a grand jury against a person suspected of a crime
Indictment
38. A general increase in prices.
Inflation
29. The unlawful practice of using information that comes from a source within the business but is not available to the general public to trade on the stock market.
Insider Trading
69. the unlawful practice of using information that comes from a source within a business to trade on the stock market
Insider Trading
42. The charge for borrowing money or the return for lending it.
Interest
He served on the Council of Economic Advisors and the Board of Governors of the Federal Reserve System. He suggested taxing foreign exchange transactions to reduce speculation in international markets. Who won the 1981 Nobel Prize in Economics for the Tobit model?
JAMES TOBIN
His Nobel Prize was awarded for, quote, "his analysis of financial markets and their relations to expenditure decisions, employment, production and prices." As an advisor to the 1972 George McGovern campaign, he pointed out that a high minimum wage can affect job prospects of inner city youth. What U.S. economist, who received the Nobel Prize in 1981, argued that monetary policy is only effective in capital investment?
JAMES TOBIN
In 1950, he was appointed a professor of economics at Yale University, a position he held for nearly 40 years. As a proponent of Keynesian economics, he extensively studied financial markets' influence on consumer spending. Which American economist won the Nobel Prize in Economics in 1981 for his work on investment strategy?
JAMES TOBIN
This Yale Sterling Professor of Economics argued that monetary policy was only effective in capital investment. In 1972, he served as an advisor to presidential nominee George McGovern. Who was this leading Keynesian economist, whose work on inflation and employment earned him a Nobel Prize?
JAMES TOBIN
This proponent of capital investment proposed a specific tax to discourage currency speculation. This economic theorist created a formula that compares investment costs to the market value of the investment target. What 1981 Nobel laureate is the namesake of the "q" variable in economics?
JAMES TOBIN
Works by this economist include National Economic Policy and The New Economics One Decade Older. Considered the most important Keynesian [KANES-ee-un] in the U.S., he argued that monetary policy was effective only in capital investment. Identify this economist known for linking the ratio of an asset's market value to its replacement cost — his namesake q.
JAMES TOBIN
A World War Two veteran, he became a professor at Yale, as well as director of the Cowles Foundation for Research in Economics. A Keynesian [KANES-ee-un], he argued that capital investment was the only area in which monetary policy was effective. Name this U.S. economist who was awarded the Nobel Prize for Economics in 1981.
JAMES TOBIN [TOE-bin]
An example of this man's so-called "solution" occurs when a small business willingly accepting a small share of profits when competing with a large corporation. A group of businesses that cannot make individual changes in their business strategies without suffering negative effects exist in his namesake "equilibrium." Name this Nobel Laureate in Economics known for his work in game theory, whose struggle with schizophrenia was chronicled in A Beautiful Mind.
JOHN FORBES NASH JR.
His work has been applied to many fields that involve chance, including market economics, evolutionary biology, and artificial intelligence. He was a research mathematician at Princeton, and shared the 1994 Nobel Prize for Economics with two other men for his work on game theory. What Nobel laureate's battle with paranoid schizophrenia was made famous in the movie A Beautiful Mind?
JOHN FORBES NASH JR.
Born in Canada, he was named the United States ambassador to India by John F. Kennedy. An economist, he was awarded the Medal of Freedom in 1946 and the Presidential Medal of Freedom in 2000. What economist is known for such works as American Capitalism, The Affluent Society, and The New Industrial State?
JOHN KENNETH GALBRAITH
4. This member of the Bloomsbury Group challenged neoclassical economic thought with his idea that aggregrate demand, rather than aggregate supply, determined economic activity. Milton Friedmen claimed "we are all" his type of economists "now," a phrase Richard Nixon uttered in 1971 after taking the U.S. off the gold standard. Which economist, whose policies resurged during 2007's Great Recession, wrote The General Theory of Employment, Interest and Money?
JOHN MAYNARD KEYNES
He argued that aggregate demand determined overall economic activity, and that inadequate demand would cause long periods of high unemployment. He was part of the Bloomsbury Group, and a director of the Bank of England. What economist is known for his support for government-funded measures to counteract economic recessions and depressions?
JOHN MAYNARD KEYNES
This member of the Bloomsbury Group challenged neoclassical economic thought with his idea that aggregrate demand, rather than aggregate supply, determined economic activity. Milton Friedmen claimed "we are all" his type of economists "now," a phrase Richard Nixon uttered in 1971 after taking the U.S. off the gold standard. Which economist, whose policies resurged during 2007's Great Recession, wrote The General Theory of Employment, Interest and Money?
JOHN MAYNARD KEYNES
The theories of this economist were a core part of economics textbooks until the 1980s. In his most influential work, he argued that the market would not be able to solve the problem of unemployment during the Depression. What British economist published, in 1935, a seminal work which called for government-sponsored full employment?
JOHN MAYNARD KEYNES [CANES]
102. He originally concentrated on math and the classics at Cambridge, then switched to politics and economics. His first major work, Indian Currency and Finance, was published in 1913, and he attended the Versailles [ver-SIGH] Peace Conference in 1919. What economist gave up a career in government service because he disagreed with the conditions imposed on Germany?
JOHN MAYNARD KEYNES [KANES]
He attended Cambridge, socialized with members of the Bloomsbury group, and married a Russian ballerina. He took a seat in the House of Lords and helped found the organization that would later become the World Bank. Name this British economist and civil servant, author of The General Theory of Employment, Interest, and Money, who has given his name to a popular theory of economics.
JOHN MAYNARD KEYNES [KANES]
He condemned the Versailles [ver-SIGH] Peace in a 1919 work titled The Economic Consequences of the Peace, arguing it was unlikely that Germany would meet reparations. In the 1920s, he rarely defected from the generally accepted laissez faire [les-ay FAIR] theories of economics. What British economist broke with the laissez faire tradition to advocate government jobs programs in his The General Theory of Employment, Interest and Money?
JOHN MAYNARD KEYNES [KANES]
He originally concentrated on math and the classics at Cambridge, then switched to politics and economics. His first major work, Indian Currency and Finance, was published in 1913, and he attended the Versailles [ver-SIGH] Peace Conference in 1919. What economist gave up a career in government service because he disagreed with the conditions imposed on Germany?
JOHN MAYNARD KEYNES [KANES]
In the early stages of World War Two, he wrote three articles collected as How to Pay for the War. He was also an influential figure at the Bretton Woods Conference in 1944, although most ideas adopted were put forth by the U.S. Treasury Department. What British economist's model, the standard one in American economics decades, fell out of favor in the 1980s?
JOHN MAYNARD KEYNES [KANES]
This economist was a member of the Bloomsbury Group, and published his first major work, Indian Currency and Finance, in 1913. He thought that his solution to widespread unemployment would work best in a totalitarian state. Name the British economist who proposed that, during times of high unemployment, the government should sponsor programs to employ displaced workers.
JOHN MAYNARD KEYNES [KANES]
This economist's theories attempted to explain long-term unemployment and government policies to correct it. He was also a proponent of deficit spending in the time of a recession. What economist wrote The General Theory of Employment, Interest and Money and has his own school of economics based on his economic theories?
JOHN MAYNARD KEYNES [KANEZ]
This anti-neoclassicist and opponent of the gold standard correctly predicted Germany's economic turmoil in the wake of World War One. His remedy for a recession involved government involvement to reduce unemployment to a zero level. Name this British macroeconomist, who lends his name to a school of economic thought.
JOHN MAYNARD KEYNES [KAYNZ] Accept: KEYNES IAN ECONOMICS
During World War One, he worked in the Treasury, seeking ways to conserve his nation's scarce reserves of foreign currencies. After the war he attended the peace conference, but resigned his post on the grounds that the policies would bring about the "devastation of Europe." What economist wrote The General Theory of Employment, Interest and Money?
JOHN MAYNARD KEYNES [kanes]
With Reinhard Selten and John Harsanyi, this economist won the 1994 Nobel Prize in Economics. He is the namesake of an equilibrium in which no player has any incentive to deviate unilaterally. Who is this economist whose life and struggle with schizophrenia is portrayed in the movie A Beautiful Mind?
JOHN NASH
As a member of Parliament, this economist was the first man to support female suffrage. His best known work discusses legitimate exercises of power by society over the individual. Name this author of On Liberty, known for his support of Utilitarianism.
JOHN STUART MILL
In The Theory of Economic Development, he writes that the entrepreneur is the prime cause for economic development. His best-known work in English is Capitalism, Socialism, and Democracy. Name this Austrian-born economist who popularized the term "creative destruction."
JOSEPH SCHUMPETER [SHUM-pay-tur]
This academic economist was chairman of President Clinton's Council of Economic Advisors from 1995-1997. He has made important contributions in microeconomics, specifically in research on unemployment and screening. What former chief economist at the World Bank won the Nobel Prize in Economics in 2001?
JOSEPH STIGLITZ
This type of demand-side economics consists of ideas set forth in a 1935-36 book and subsequent works, meant to provide a basis for full-employment policies. One basic idea is that employers will not hire workers to make goods that cannot be sold. Identify this type of economics named for the economist who wrote General Theory of Employment, Interest and Money.
KEYNESIAN [KANES-ee-un] ECONOMICS Accept: KEYNESIANISM [KANES-ee-un-iz-um]
3. 1818-1883 German economist, historian, and social philosopher. His principal contribution to economic thought was extending the labor theory of value to its logical conclusion, his theory of surplus value. This theory, along with his defense of economic materialism, appeared in Das Kapital 1867 .
Karl Marx
attacked the exploitative nature of free market capitalism; associated with command economies
Karl Marx
Who is the father of communism? Where was he from?
Karl Marx, Germany
Member of Bloomsbury Group
Keynes
Wrote "The General Theory of Employment, Interest, and Money"
Keynes
we are all his type of economist "now"
Keynes
Its name was apparently coined by Jude Wanniski, an associate editor of The Wall Street Journal. It graphically represents the relationship between the percentage tax rate and the tax revenue. What economic graph is used to explain supply-side economics, and has been used by Kansas Governor Sam Brownback?
LAFFER CURVE
Jude Wanniski coined this term in a report on its origins. This economic concept purports to measure the elasticity of taxable income based on the relationship between tax rate and real revenue. Name this curve that influenced American economic policy in the 1980s, famously sketched on a cocktail napkin.
LAFFER CURVE
The name for this economic curve was coined by Jude Wanniski. The curve's shape first increases to a maximum and decreases thereafter and shows the idea of taxable income elasticity. What is this curve in economics that relates rates of taxation to government revenue from that taxation rate?
LAFFER CURVE
This economics curve has tax rate and tax revenue on its axes, with a concave-down parabola illustrating that tax rates can be cut to increase government revenues. What economics curve did future President George H. W. Bush ridicule as "voodoo economics"?
LAFFER CURVE
This graphic representation links average tax rates to total tax revenue. It is named for an economist who allegedly drew it for Dick Cheney on a napkin at a bar in Washington, D.C. What curve illustrates the theory that lower taxes may lead to higher revenues?
LAFFER CURVE
This theoretical economics term was named in honor of the American economist who first postulated it. It is the plot of the relationship between the tax rate and the total tax receipts of the government. What graph suggest that total tax revenues can be increased by lowering a high tax rate?
LAFFER CURVE
John Stuart Mill popularized this economic philosophy in his 1848 work, Principles of Political Economy. It reached its peak about 1870, but industrial growth and mass production caused it to fall out of favor. What system takes its name from the French for "allow to do" ?
LAISSEZ FAIRE [les-ay FAIR, leh-say FER]
In French, this phrase literally means "allow to act." In general, it refers to "the practice of noninterference in the affairs of others." What kind of political system believes in little government interference in economic affairs?
LAISSEZ-FAIRE [LAY-zay FAIR]
In French, this term means "allow to act" or "let it be." Which term refers to the theory that the government should intervene as little as possible in economic matters?
LAISSEZ-FAIRE [LAY-zay FAIR]
One treatment of this concept in environmental philosophy is purely economic and states that an area should be used in a manner that maximizes monetary gain with no consideration of its ecological impact. What is this phrase, which was redefined in an ecological sense by Aldo Leopold in his work, A Sand County Almanac?
LAND ETHIC
In The Isolated State by Heinrich von Thune [HINE-rick fawn TOO-nuh], a theory of land value was set forth based on this concept, visualized by using concentric rings. This concept was key to David Ricardo's understanding of rent, and is similar to a version that applies to utility. What is this economic concept, which states that the yields of production decrease as production increases?
LAW OF DIMINISHING MARGINAL RETURNS
This economic concept is illustrated when more cooks are placed in a kitchen. At some point, the cooks will begin to get in one another's way, resulting in less productivity than if each were working alone. What law of economics states that continual adding of a single factor of production will at some point yield a decrease in efficiency?
LAW OF DIMINISHING MARGINAL RETURNS
While discussing this economic law, Malthus and Ricardo explained it by stating that the input added was of lower quality. A common example of this law is increasing the number of worker's in a limited space, which will eventually result in lower marginal returns. What is this law that states that there is a decrease in marginal output as a single factor of input is increased?
LAW OF DIMINISHING MARGINAL RETURNS
This law represents an inverse relationship between returns of inputs and the cost of the production of the good. Early economists believed that it would eventually lead to a level of misery, at which population would not increase. What law is defined as a reduction of the increase of production when a single factor of production is increased?
LAW OF DIMINISHING RETURNS Accept: PRINCIPLE OF DIMINISHING MARGINAL PRODUCTIVITY
The free market controls the economy
Market economy
25. A French term that describes a system or point of view that opposes regulation or interference by the government in economic affairs beyond the minimum necessary to allow the free enterprise system to operate according to its own laws.
Laissez-faire
10. An obligation or debt.
Liability
30. A claim or right given to a creditor to secure payment of a debt, usually by sale of the debtor's property.
Lien
14. The kind of asset in the form of money, or one that can be converted quickly into money
Liquid Asset
This economist described what he found in economics as "pleasures and joys like those that religion provides to the faithful." Along with Stanley Jevons [JEV-unz] and Carl Menger, this 19th century French economist independently developed the concept of marginal utility. Who revolutionized economics with his rigorous mathematical formulation of the mechanics of the price system?
LÉON WALRAS [vahl-RAHSS]
Economists use this term as a measure of the total money supply in the U.S. economy. It does not include currency and checking deposits owned by the U.S. government or money in savings accounts or time deposits. What term is defined as the value of all currency and traveler's checks in circulation, plus the value of all checking deposits?
M1
This school of classical economists developed along with the formation of the Anti-Corn Law League in 1838 and was in favor of free trade. What was this school of economics centered around a large manufacturing city in England?
MANCHESTER SCHOOL
In a market with perfect competition, companies will continue to increase production until this value reaches the selling price of an item. It decreases with economies of scale, but begins to increase when production becomes large enough. What is the term for the production of one additional unit of a good?
MARGINAL COST
Followers of this school of economics believed that people received equal returns based upon their contributions to production. What school introduced basic analyses of supply and demand into macroeconomics after the era of classical economics?
MARGINALIST S SCHOOL Accept: MARGINALISM
The monopsony [muh-NOP-suh-nee] form of this economics concept has a single buyer and multiple sellers. In one kind, the producer sells his good for whatever someone will pay. In another, the producer sets a price and sells as much as buyers will take. What economics term refers to any mechanism through which buyers and sellers exchange goods and services?
MARKET
This effort was administered by Paul G. Hoffman through the Economic Cooperation Administration. Nearly all European countries were eligible, but the Soviet Union and those nations under its control did not participate. What plan for the economic recovery of Western Europe was proposed by, and named for, President Truman's secretary of state?
MARSHALL PLAN Accept: EUROPEAN RECOVERY PROGRAM
This political -ism includes philosophical anthropology, economics, politics, and historical theory. It was formulated in the mid-19th century, mostly by the man for whom it is named. What political theory is also based on the writings of Friedrich Engels?
MARXISM -LENINISM Accept other forms of the word
42. Adam Smith was among the first economists to use this term, although he credits the French economist Mirabeau [meer-ah-BOH]. This is the economic policy that was predominant during the Renaissance period in Europe. What is this policy, which turned many European trading nations into domineering dictators?
MERCANTILISM
Adam Smith was among the first economists to use this term, although he credits the French economist Mirabeau [meer-ah-BOH]. This is the economic policy that was predominant during the Renaissance period in Europe. What is this policy, which turned many European trading nations into domineering dictators?
MERCANTILISM
Not only did this system require colonies to use gold and silver as currency, but it also promoted domestic industry and provided protection against foreign competition. Governments favoring this system usually had strong navies with which to control the seas. Identify this economic policy promoted in France by Jean-Baptiste Colbert [zhahn bah-TEEST kohl-BARE], whose focus was to maintain a favorable balance of trade.
MERCANTILISM
This level of economic analysis tries to analyze the mechanisms that set relative prices among goods and services, and that allocate resources among alternative uses. At this level, one might examine the workers at a single company. What level of economic analysis deals with specific economic units rather than the entire economy?
MICRO ECONOMICS
78. In his doctoral dissertation, this man argued that because state licensing procedures limited the number of doctors, the doctors could charge more money. He won the Nobel Prize in Economics for his contributions to "consumption analysis, monetary history and theory, and...the complexity of stabilization policy." Who was this advisor to both Margaret Thatcher and Ronald Reagan, the author of Capitalism and Freedom?
MILTON FRIEDMAN
In an early work, this economist found that the American Medical Association's barriers to admitting physicians to practice helped explain physicians' higher incomes. He set forth the permanent income hypothesis in a 1957 work, A Theory of the Consumption Function, and praised free markets in Free to Choose, which he co-wrote with his wife, Rose. Name this University of Chicago economist who won the 1976 Nobel Prize in Economics, and who championed monetarism.
MILTON FRIEDMAN
In his doctoral dissertation, this man argued that because state licensing procedures limited the number of doctors, the doctors could charge more money. He won the Nobel Prize in Economics for his contributions to "consumption analysis, monetary history and theory, and...the complexity of stabilization policy." Who was this advisor to both Margaret Thatcher and Ronald Reagan, the author of Capitalism and Freedom?
MILTON FRIEDMAN
In his introduction to Studies in the Quantity of Money, this economist opposed the Keynesian [KANES-ee-un] dictum that "money does not matter." He also argued that the trade-off between inflation and unemployment shown by the Phillips Curve is only temporary. Name this U.S. economist who was awarded the Nobel Prize in 1976.
MILTON FRIEDMAN
This economist, who was influenced by Alfred Marshall's theories, said that economics should explain the real world, not just be a game of math. One of his early studies showed how the American Medical Association increased doctors' income by setting up barriers to entry. What U.S. economist was awarded the Nobel Prize in 1976?
MILTON FRIEDMAN
This man first proposed the idea that familial spending patterns are unchanged when there is no perceived change in average income over time. His work in economic stabilization led to his receipt of the 1976 Nobel Prize in Economics. Name this economic policy advisor to Ronald Reagan, a conservative American monetarist.
MILTON FRIEDMAN
This man theorized that there was a natural rate of unemployment, and going below that rate would accelerate inflation. He developed the macroeconomic theory of monetarism, and was an economic advisor to Ronald Reagan. What economist won the 1976 Nobel Prize for Economics, and retired from the University of Chicago?
MILTON FRIEDMAN
policy pronouncements called for school vouchers, decriminalizing drugs, and a balanced budget amendment. Name the economist awarded the Nobel Prize in 1976 for his work on consumption analysis and monetary history.
MILTON FRIEDMAN
This long-time professor at the University of Chicago claimed that the Great Depression would have been a normal downturn if the Federal Reserve had not made critical mistakes. He maintained that there is a close relationship between price inflation and the money supply. What advisor to Presidents Nixon and Reagan was awarded the Nobel Prize in Economics in 1976?
MILTON FRIEDMAN [FREED-mun]
Microeconomic theory holds that when this value is set above the equilibrium wage in the labor market, it reduces the quantity of labor demanded. However, it can actually increase both the equilibrium wage and the quantity of labor demanded. Identify this value, which the federal government currently defines to be $7.25 per hour.
MINIMUM WAGE
Nations with this type of economy include Iceland, France, and Hong Kong. The government controls part of the economy, while other aspects are left in private hands. What do we call this combination of market and command economies?
MIXED ECONOMY Accept: DUAL ECONOMY
This economic theory is based on the equation MV equals PQ, with the causation moving from the left to the right of the equation. Proponents contend that economic stability results from increasing the money supply at a constant annual rate tied to the potential growth of the GDP. Identify this theory, associated with Milton Friedman.
MONETARISM Accept other forms of the word
This economic philosophy, in contrast with the Keynesian [KAYNZ-ee-un] idea, views inflation as the paramount issue that governments must confront. Identify this economic view, formulated by Milton Friedman, which basically holds that the supply of money is the most critical element in managing the economy.
MONETARISM [MAH-nuh-tuh-riz-um]
This alternative to Keynesianism [KANES-ee-un-iz-um] has historically been held by a minority of U.S. economists. It assumes that people hold money for different reasons than they save, with an excess supply of money spent on goods, not on bonds. What theory holds that incomes, not interest rates, mainly determine how much money people want to hold?
MONETARISM [MAH-nuh-tuh-riz-um] Accept: MONETARIST [MAH-nuh-tuh-rist
An example of this economic phenomenon would be a single-payer health care system, where one consumer dictates terms and prices to many producers. Another would be in labor markets when one firm dominates all hiring. Identify this economic phenomenon, defined to be a market in which only one consumer purchases goods and services.
MONOPSONY [muh-NOP-suh-nee]
This economist and social activist won the 2006 Nobel Peace Prize for his efforts to help the poor through his idea of microfinancing. Give the name of this Bangladeshi and founder of the Grameen Bank.
MUHAMMAD YUNUS [YOO-nus]
the study of the economy as a a whole and focuses on the aggregate behaviors of producers and consumers
Macroeconomics
An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity.
Marginal analysis
One implication of this economic law is that an increase in the productivity of labor or an increase in the size of the labor force can result in a higher net output without the unemployment rate falling. First proposed in 1962, one version of this law states the relationship between unemployment and real GDP on the quarterly level. What is this law that also states that for every 1 percent increase in unemployment rate, a country's GDP will be 2 percent lower than its potential GDP?
OKUN'S LAW
Chapters 8 through 17 of this book deal with various taxes, such as those on raw produce, gold, profits, and wages. Chapter 25 discusses colonial trade, while Chapter 28 looks at the comparative value of gold, corn, and labor. What 1817 book about political economics was written by David Ricardo?
ON THE PRINCIPLES OF POLITICAL ECONOMY AND TAXATION
The term for this economic principle was coined in 1914 by the Austrian Friedrich von Wieser. A common example of this principle is the money lost from working a job by going to college in hopes that a degree will result in a better outcome. What is this basic economic principle that is defined as the loss of a potential gain from the next best alternative, when a choice has already been made?
OPPORTUNITY COST
This economic principle has been described as "the basic relationship between scarcity and choice," and was first conceived by John Stuart Mill. What two-word phrase is used by economists to describe the value of the next-highest-valued alternative use of a resource?
OPPORTUNITY COST
This two-word concept is illustrated when a child goes to a friend's party instead of playing in the park. Going to the party means the child will not be able to go to the park, the loss of a benefit. What economics phrase refers to the benefits that are lost when resources are allocated to a mutually exclusive alternative?
OPPORTUNITY COST
Changes in this economic measurement often result in unemployment fluctuations, as businesses adjust to over- and underproduction of goods and services. When the economy is at full employment, real GDP equals potential GDP, so this value is zero. Identify this two-word phrase, defined as "the difference between an economy's potential GDP and its real GDP".
OUTPUT GAP
11. The name given to the situation in which a written check exceeds the funds on deposit to cover it.
Overdraft
This theory is sometimes called the law of the trivial many and the critical few, or the 80-20 law. It argues, for example, that 20 percent of the customers would account for 80 percent of the sales in dollars. Identify this law, named after the Italian-Swiss economist who proposed it.
PARETO 'S [pah-REH-tohz] LAW
This economic law was first suggested in a humorous essay in The Economist published in 1955. It equates to a mathematical equation which shows the rate at which bureaucracies expand over time. Name this economic law which states, "work expands to fill the time available for its completion."
PARKINSON'S LAW
He integrated economies of scale into economic models of general equilibrium, leading to a better understanding of globalization. He is known for examining the effects of consumer preferences for diverse goods on international trade. What Princeton economist was awarded the 2008 Nobel Prize in Economics?
PAUL KRUGMAN
In 1991, he was awarded the John Bates Clark Medal, given to an economist under age 40. His 2003 book, The Great Unraveling: Losing Our Way in the New Century, contains essays criticizing the George W. Bush administration. Name this New York Times op-ed columnist who was awarded the Nobel Prize for Economics in 2008.
PAUL KRUGMAN
This economist is known for his works on liquidity traps, international economics, and currency crises. He has written more than 750 columns for The New York Times, and writes a blog called The Conscience of a Liberal. Who won the Nobel Prize in Economics in 2008 for his contributions to new trade theory and new economic geography?
PAUL KRUGMAN
This economist strongly advocated increasing the amount of the federal stimulus package. A frequent op-ed contributor to the New York Times, name this professor of economics at Princeton, author of The Conscience of a Liberal, and winner of the 2008 Nobel Prize in economics.
PAUL KRUGMAN
This man's work on international trade patterns led the Asia Times to call him "the Mick Jagger of political/economic punditry." A professor at Princeton, his most recent publications include The Return of Depression Economics and the Crisis of 2008 and End This Depression Now! Who is this current New York Times op-ed columnist?
PAUL KRUGMAN
This scholar's 2003 work, The Great Unraveling: Losing Our Way in the New Century, criticized the George W. Bush administration. In addition to writing textbooks on microeconomics and macroeconomics, he wrote a nonacademic bestseller, The Conscience of a Liberal. Identify the winner of the 2008 Nobel Prize in Economics.
PAUL KRUGMAN
From 1982 to 1983, this scholar was the chief staffer on the Council of Economic Advisers under President Reagan. He has specialized in economic geography and international trade patterns. Name this Princeton professor who was awarded the Nobel Prize for Economics in 2008.
PAUL KRUGMAN [KROOG-mun]
He has written 20 books, 200 scholarly articles, and more than 750 articles for The New York Times. One of his better known books is The Great Unraveling: Losing Our Way in the New Century, which was published in 2003. Who won the Nobel Prize for Economics in 2008 for his work on explaining the patterns of international trade and the geographic concentration of wealth?
PAUL KRUGMAN [KROOG-mun]
In 1979, he was a researcher at the National Bureau of Economic Research, then spent a year on Reagan's Council of Economic Advisers. He combined economies of scale and general equilibrium models, expanding that analysis to what he called the "new economic geography." Who was awarded the Nobel Prize for Economics in 2008?
PAUL KRUGMAN [KROOG-mun]
It is an economic model of price determination in a market. A unit price for a good will vary until it settles at a point where the quantity demanded at current price will equal the quality supplied. Four basic laws.
Supply & Demand
In this type of economic competition, all suppliers sell at the same price which is equivalent to the perfectly elastic demand curve and marginal revenue curves. Consumers are aware of the prices charged by each firm and are well aware of features of the product. What is this competition type in which no individual participants have market power and thus is the opposite of a monopoly?
PERFECT COMPETITION Accept: PURE COMPETITION
Edmund Phelps won the 2006 Nobel Prize in Economics for his work in modifying this economic concept to include speculation about the variable used for one of its axes [ACK-seez]. It first appeared in a 1958 article that examined its applicability to the economic situation of Britain. Identify this economic curve, which demonstrates that when the unemployment rate goes down, the inflation rate goes up.
PHILLIPS CURVE
Paul Samuelson and Robert Solow made one link in this economic curve explicit in 1960. Its origins come from a 1958 paper that states wages tended to rise faster when the unemployment rate was low. What is this curve that shows the inverse relationship between unemployment and inflation?
PHILLIPS CURVE
This economic concept implies that the goals of low inflation and low unemployment may be incompatible. However, high unemployment and high wage increases in the 1970s, and low unemployment and low inflation in the early twenty-first century cast doubt on its validity. What curve is named for the New Zealander who proposed it in 1958?
PHILLIPS CURVE
This economic graph couldn't account for 1970s stagflation, a period of high unemployment and large wage increases. Similarly, the low unemployment and low inflation of the early twenty-first century was inconsistent with the graph's predictions. Identify the economic curve that shows wages rising quickly when unemployment is low.
PHILLIPS CURVE
This economic principle was named for a New Zealander, who theorized that in times of low unemployment, workers receive higher pay, which causes inflation. But because low unemployment and low wages have been observed occurring together, what principle is now considered too simplistic?
PHILLIPS CURVE
This group of economists advocated a laissez-faire policy in reaction to the mercantilists' call for trade regulations. They also believed that agriculture was the sole source of wealth in an economy. Name this group of 18th-century French economists, whose name comes from the Greek for "rule by nature."
PHYSIOCRATS
A larger number of this economic value means the quantity supplied or demanded is more sensitive to price changes, while a smaller one indicates the quantity is less sensitive to price changes. What economic concept explains why firms have sales on certain products and why raising taxes can decrease government revenue?
PRICE ELASTICITY
The simple demand variety of this economic concept is found by dividing the percentage change in quantity demanded by the percentage change in price. The cross demand variety involves the percentage change in price of a substitute for the good. What concept relates how supply of or demand for a good changes in response to changes in price?
PRICE ELASTICITY
For this two-word economic action to be effective, it must be set above the natural market equilibrium value. Perhaps the most common example occurs when a government sets a minimum wage. What two-word phrase refers to what the government sets to prevent prices from being too low?
PRICE FLOOR
The most common example of this economic policy is the minimum wage. It is the result of a government imposed price that sets the market price above the equilibrium price, thus the market does not operate in equilibrium. What is this economic policy that sets the minimum price for a good or service and causes more demand than it is willing to supply?
PRICE FLOOR
States that a person cannot improve his status without harming that of another
Pareto Optimality
This economic theory espouses the idea that lower taxes on corporations will stimulate investment in industry, thus increasing production. Name this theory that takes the opposite route of stimulating demand by granting subsidies to the public.
SUPPLY-SIDE ECONOMICS or THEORY Accept: REAGONOMICS
64. principle that states that every employee tends to rise to his level of incompetence
Peter Principle
Wages rise quickly when unemployment is low
Phillips Curve
41. The original amount of money lent, not including profits and interest.
Principal
15. A term often applied to industrial workers, particularly by followers of Karl Marx.
Proletariat
Three-word answer required. For fixed-income securities, this economic concept equals the dividend rate divided by the purchase price. With common stock, it refers to the annual dividend divided by the purchase price. What three-word term, in corporate finance, can be considered return on equity or invested capital, and is abbreviated ROR?
RATE OF RETURN
One objection to this hypothesis is that workers may not be able to adjust fully to new information if they are locked into long-term contracts. Another is that recessions cost too much and last too long to be rational. What hypothesis holds that firms and households take actions in their own self-interest, rendering economic policies ineffective?
RATIONAL EXPECTATIONS HYPOTHESIS
This economic program led to a severe recession, large budget deficits, low inflation, and economic growth. It stressed higher defense spending, less spending on social services, and lower taxes. Identify the economic program associated with, and named for, the fortieth president.
REAGANOMICS
Most economists say this phenomenon occurs when an economy undergoes two consecutive quarters of negative economic growth. The United States entered a short one in 2001, with another beginning in December 2007. Identify this period of economic downturn, less serious than a depression.
RECESSION
This economic phenomenon occurred in the United States in 1982, 1990, and 2001. It is a decline in economic activity lasting for several months, resulting in increased unemployment and decreased retail sales. What term for a business cycle contraction is usually identified by two consecutive quarters of decreasing gross domestic product?
RECESSION
Most economists reject the idea that this economic principle holds true in every case in the market for loanable funds. It assumes that households adjust their levels of saving and spending in anticipation of shifting future tax burdens. What economic principle claims that when a government runs a deficit, households will increase their level of savings?
RICARDO-BARRO EFFECT Accept: RICARDIAN EQUIVALENCE
47. Informally, a worker who stays on the job while others go on strike. Also, a worker brought in to keep a plant operating when its work force is on strike
Scab
72. a person or group made to bear the blame of others
Scapegoat
27. A term describing businesses that sell goods directly to individuals
Retail
44. This term refers to the income of local, state, or national governments.
Revenue
This economic law became popular during the start of the Industrial Revolution and represents the Classical Economic School of thought. It was accepted until the 20th century when Keynesian [kane KNEE see an] Economics disputed the principle. What is this law that its namesake describes products are paid for with products and that a rational entrepreneur will never hoard money as the value of money is perishable?
SAY'S LAW
This economic law is named after the 18th-century French economist who is given credit for discovering it. Some economists vehemently disagree with this law, claiming instead that aggregate demand determines the quantity supplied of a good. Which economic law, a principle of supply-side economics, basically states that supply creates its own demand?
SAY'S LAW
This economic idea makes the idea of competition a necessity, because it determines how the good or service is divided up among interested parties. It is almost nonexistent for goods such as air and water, but is much higher for goods such as gold or diamonds. Name this economic idea that has to do with a lack of resources to fulfill all human wants and needs.
SCARCITY
This economic principle deals with the allocation of hard-to-find goods. Human wants are unlimited but natural resources and capital are not. What is this economic term that deals with the insufficient supply of goods?
SCARCITY
This form of economy is considered more leftist than capitalism, but further right than communism. Name this economic system in which most necessary goods and services are provided or controlled by the government.
SOCIALISM
In an article published in 1949, Albert Einstein stated the real purpose of this type of government is "to overcome and advance beyond the predatory phase of human development." According to Marxist theory, it is the transitional stage between capitalism and communism. In what type of government and economic system are private property and income distribution subject to social and community control?
SOCIALISM Accept: SOCIALIST
This Jackson administration measure, along with European economic downturns, helped start the Panic of 1837. Identify this executive order, issued in 1836, which required all purchases of government land to be paid in gold or silver.
SPECIE CIRCULAR
This term was apparently coined by Iain Macleod to describe the economic situation in England in 1965. The term was also applied to the U.S. economy of the late 1960s and early 1970s, when prices were increasing but the overall economy was not improving. What term is a blend of words meaning "sluggish economic growth" and "rapidly increasing prices"?
STAGFLATION
Strictly speaking, these economic indicators differ from simple averages because they are averages expressed in relation to a base market value. Many are broad-based, but some include a smaller number of stocks from a particular industry or market sector. What indicators include the S&P 500, the Dow Jones Industrial Average, and the NASDAQ Composite?
STOCK MARKET INDEX INDICES
Championed by Margaret Thatcher and Ronald Reagan, this economic policy favors deregulation, liberalization, and privatization. It is opposed to Keynesian [KANES-ee-un] economic theory, which favors regulation and government intervention. What type of economics is often confused with trickle-down economics?
SUPPLY-SIDE ECONOMICS
Supporters of this theory claim that it was proven by the events of the early Reagan years, when marginal tax rates were cut just before a long-lasting economic recovery. Keynesian [KANES-ee-un] economists disagree, claiming the recovery resulted from increasing consumer demand as disposable income rose. What theory holds that a drastic reduction in tax rates will stimulate investment in production?
SUPPLY-SIDE ECONOMICS
This economic theory says that economic growth is best achieved by facilitating production and supply, typically manifested in lower tax rates and less regulation. Name this school of economic thought, called "voodoo economics" by George H. W. Bush and popularized and utilized by Ronald Reagan.
SUPPLY-SIDE ECONOMICS Accept: REAGANOMICS
The term for this economic school of thought was coined by Herbert Stein, a former economic adviser to President Nixon, in 1976. Based on the tenet that economic growth will accelerate when the barriers to production are minimized, it is often associated with the presidency of Ronald Reagan. Name this school of economics which concentrates on the opposite of "demand."
SUPPLY-SIDE ECONOMICS Accept: TRICKLE-DOWN ECONOMICS or REAGANOMICS
Regulates trade in stock and bond
Securities and Exchange Commission SEC
55. an economic system run by the government which tries to distribute wealth to everyone
Socialism
45. A share in the ownership of a corporation.
Stock
34. A concerted refusal to work by employees in a particular business or industry. Its goal is usually to force employers to meet demands respecting wages and other working conditions
Strike
46. Farming that provides enough food for the farmer and his family but not enough for sale.
Subsistence Farming
31. In classical economic theory, the relation between these two factors determines the price of a commodity. This relationship is thought to be the driving force in a free market
Supply & Demand
64. An illustration of this concept claims that although a rich man may want to keep an entire harvest for himself, nature guides him to distribute it because he could not consume it all. It describes the unintended societal benefits of an individual's action, and supports its author's laissez-faire economic policy. Give this idea found in The Theory of Moral Sentiments and The Wealth of Nations, both written by Adam Smith.
THE INVISIBLE HAND
An illustration of this concept claims that although a rich man may want to keep an entire harvest for himself, nature guides him to distribute it because he could not consume it all. It describes the unintended societal benefits of an individual's action, and supports its author's laissez-faire economic policy. Give this idea found in The Theory of Moral Sentiments and The Wealth of Nations, both written by Adam Smith.
THE INVISIBLE HAND
51. Ferdinand Lasalle first wrote on this economic principle in his Subsistance Theory of Wages, and Thomas Malthus developed a similar law about population. David Ricardo alternately theorized that pay could be temporarily driven higher because of capitalist society's variables. Name the theory stating that, in the long run, an employee's payment always tends toward the lowest possible amount needed to sustain life.
THE IRON LAW OF WAGES
Ferdinand Lasalle first wrote on this economic principle in his Subsistance Theory of Wages, and Thomas Malthus developed a similar law about population. David Ricardo alternately theorized that pay could be temporarily driven higher because of capitalist society's variables. Name the theory stating that, in the long run, an employee's payment always tends toward the lowest possible amount needed to sustain life.
THE IRON LAW OF WAGES
This economic hypothesis is explained in two interacting effects on taxation: the arithmetic effect and the economic effect. Name this economic hypothesis, which states that, at a certain point, tax rates can increase so much that people will decide not to work, thus decreasing government revenues rather than increasing them.
THE LAFFER CURVE
Only three Republicans voted for this legislation, although one of them, Arlen Specter, later became a Democrat. Some economists argue that the final bill is too small to have any real impact. Identify this legislation, which the White House credits with saving or creating up to 3.5 million jobs, at a final cost of $862 billion.
THE STIMULUS PACKAGE Accept: AMERICAN RECOVERY AND REINVESTMENT ACT , Not: BAILOUT PACKAGE
The first chapter of this book states that its subject is best found in higher barbarian cultures, such as feudal Europe and feudal Japan. Subtitled An Economic Study of Institutions, it claims that business leaders want to make money and display their wealth. Identify this 1899 economic classic written by Thorstein Veblen.
THE THEORY OF THE LEISURE CLASS
This economic work states that in less developed cultures, the predatory powers of a man or tribe were held in high esteem, giving honorific status to their holders. It also coins many popular economic terms and concepts, including pecuniary [puh-KYOO-nee-air-ee] emulation, conspicuous waste, and conspicuous consumption. Identify this groundbreaking 1899 economic work by Thorstein Veblen [THOR-styne VEB-lun].
THE THEORY OF THE LEISURE CLASS
In this 1899 work, the author tried to apply Darwin's evolution theory to economics. It proclaimed that the outlook of those who ruled the business world were relics of mankind's predatory, barbarian roots. What is the title of this book that was often read as satire by the contemporaries of its author, Thorstein Veblen [THAWR-stine VEB-lun]?
THE THEORY OF THE LEISURE CLASS: AN ECONOMIC STUDY OF INSTITUTIONS
Alexander Hamilton wrote Report on Manufactures as a response to a book in which he opposed many of the policies. It is usually considered the paramount of classical economics, and discusses the division of labor and free markets during the time of the Industrial Revolution. What book, which includes the idea of the Invisible Hand, was published in 1776 by Adam Smith?
THE WEALTH OF NATIONS
This writer published an essay on the philosophy and symbolism of clothes, which he entitled "Sartor Resartus." He nicknamed economics "the dismal science," and wrote of leadership in his work On Heroes, Hero-Worship, and the Heroic in History. Name this Scottish philosopher, who chronicled the Reign of Terror in The French Revolution: A History.
THOMAS CARLYLE
He was the only contemporary economist who supported the Corn Laws, which taxed wheat being imported to Great Britain. His writings influenced the thinking of Charles Darwin and Alfred Russell Wallace. Name this Anglican clergyman, who described his theory of population growth in An Essay on the Principle of Population.
THOMAS MALTHUS
This clergyman postulated that the "natural inequality of the two powers", namely food production and population growth, "appears insurmountable in the way to perfectibility of society." Who is this British economist of the late 18th and early 19th century, who specialized in the effects of overpopulation?
THOMAS MALTHUS
This economist pessimistically viewed poverty as inescapable, and advocated for the Poor Laws' repeal. He predicted that means of subsistence would grow in an arithmetic [air-ith-MET-ik] pattern, while unchecked, the world population would grow geometrically. Who published his findings in Principles of Political Economy?
THOMAS MALTHUS
The father of this economist was a friend of philosopher David Hume, and was deeply influenced by Jean-Jacques Rousseau [zhahn zhahk roo-SOH]. He was a pessimistic economist, seeing poverty as the inescapable lot of most individuals. Name this English economist who propounded the pessimistic theory that population growth would outpace the food supply.
THOMAS MALTHUS [MAL-thuhs]
In 1805, this scholar became the first person to teach in a field called political economy. Earlier, he had supported the Poor Laws, whose intent actually ran counter to his most famous theory. What British economist theorized that human population tends to increase faster than the food supply?
THOMAS ROBERT MALTHUS
His best-known work describes how individuals spend to impress others. A type of good named for him defies the law of demand, and is based on conspicuous consumption. Identify the social scientist and economist who wrote The Theory of the Leisure Class.
THORSTEIN BUNDE VEBLEN
written by Adam Smith, promoted laissez-faire government and a market economy
The Wealth of Nations
9. 1857-1929 American economist of Norwegian heritage . He is primarily remembered for his The Theory of the Leisure Class 1899 that introduced phrases like "conspicuous consumption." He is remembered for likening the ostentation of the rich to the Darwinian proofs-of-virility found in the animal kingdom.
Thorstein Veblen
Advised presidential nominee George McGovern
Tobin
Keynesian economist, work on inflation and employment earned a Nobel Prize
Tobin
48. The condition that exists when the value of what a country imports exceeds the value of what it exports; also called an unfavorable balance of trade.
Trade Deficit
This conservative thinker became increasingly uncomfortable with the Conservative Christian movement of the Republican party. In God and Man at Yale, he pilloried his alma mater for what he perceived to be its liberal leanings. What economic conservative was the founder and editor of the National Review?
WILLIAM F. BUCKLEY
This institution has three main branches, the International Bank for Reconstruction and Development, the International Development Association, and the International Finance Cooperation. This institution was created at the Bretton Woods Conference in July 1944. What is the name of this institution that uses the International Monetary Fund to promote economic development in the world's poorer countries?
WORLD BANK
What was Smith's book called?
Wealth of Nations
63. colorful name is given to office workers
White Collar Workers
28. The sale of merchandise to retailers rather than directly to the public.
Wholesale
36. An unexpected profit from a business or other source. The term connotes gaining huge profits without working for them.
Windfall
49. The tax deducted directly from one's paycheck.
Withholding Tax
Established in 1995 during the Uruguay Round of GATT negotiations to institutionalize GATT and arbitraded trade disputes
World Trade Organization WTO
Three-word answer, please. Proponents of this theory in economics include Kenneth Boulding and Robert Heilbroner [hile-BRAH-ner], who support methods for limiting population increase in places like Asia, Latin America, and Africa. Give the name of this concept that is abbreviated ZPG.
ZERO POPULATION GROWTH
idea that government should play as small a role as possible "hands off" in economic affairs
laissez-faire
market-based economic system with limited government involvement
mixed economy
lack of enough resources to satisfy all desired uses of those resources
scarcity
