No Slide Title

Jeopardy

ThisIS1Command & Traditional EconomiesMarket & MixedEconomiesFiscal PolicyCircular FlowModelTypes of Fiscal Policy$100$200$300$400$500$100$200$300$400$500$100$200$300$400$500$100$300$400$500$100$200$300$400$500$2008Command & TraditionalEconomies3Market & MixedEconomies4Fiscal Policy5Circular FlowModel6Types of Fiscal Policy7The economic decisions of central planners often are wrong because they have little understanding of13Consumers "vote" by choosinga. a product over competing productsb. a resource over other resourcesc. to become entrepreneursd. to keep away from fad products

14The most common economic system is a:a. traditional economyb. command economyc. market economyd. mixed economy

15A society that has public schools and ownership of private property has elements of which two economic systems?16Elements of traditional, command, and market economies are combined in what type of economic system?17Freedom of economic choice is one of the chief advantages of what economic system?18What is free contract?19Which would be considered an automatic stabilizer? a. highway spending b. income tax c. military spending d. sales tax20Who funds public goods?21A public transfer payment happens when the government transfers income froma. donors to recipients who do not provide anything in returnb. donors to recipients who provide something in returnc. taxpayers to recipients who do not provide anything in returnd. taxpayers to recipient who provide something in return

22Define:Privatization&Nationalization23A circular flow model shows what?24What is the product market?26DailyDouble!!

34Producers decide allocation of goods based on27Someone hiring a cashier is participating in what market?28How did the Great Depression affect the thinking of John Maynard Keynes and other economists?a. It caused them to adopt more laissez-faire policies.b. It caused them to advocate reductions in government spending.c. It caused them to advocate higher income tax rates.d. It caused them to favor government intervention in the economy.

29Whose economic theory did Keynesian economics work to counteract?a. Alexander Hamiltonb. Karl Marxc. Joan Robinsond. Adam Smith30What did Keynes consider the most influential part of his GDP equation; why?a. consumer goods because low consumer confidence worsened the Great Depressionb. government goods because government spending is large part of the economyc. investment because it fluctuated and was linked to the spending multiplier effectd. net exports because they were related to a favorable balance of trade31What does the Laffer Curve do?32According to Milton Friedman, the Market should be allowed to operate freely33FinalJeopardy

Explain both Demand-Side Economics and Supply-Side Economics36In a factor market

a. businesses are customers and individuals are producers

b. individuals are customers and businesses are producers

c. businesses sell productive resources

d. individuals buy goods and services25ADVANTAGES:The three economic questions are clearly answered by customThere is little disagreement over economic goalsDISADVANTAGES:They resist changeThey are less productive because of thisEverything is based on custom so people arent always using their strengthsThey have a lower standard of livingWhat type of market is represented by the chart above?35Demand-sideSupply-sideFocus on increasing aggregate demandDecrease corporate taxes; cut the costs of productionTough to fix stagflation because fixing inflation and fixing unemployment require opposite policiesTough to evaluate the full impact of this because some supply-side policies also stimulate demand

Increase spendingTrickle down theoryDecrease taxesDecrease taxesDemocrats (however, they often look to increase taxes)Cut spending37