The

Supply &
Federal
Demand
Reserve

Micro

Macro

Wild

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10

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40

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Question 1 - 10
The goal of a firm...

Answer 1 10
Profit Maximization

Question 1 - 20
The goal of a household is

Answer 1 20
Utility Maximization

Question 1 - 30
At what point will a perfectly
competitive firm choose to produce at?

Answer 1 30
Where marginal cost equals marginal
revenue.
MC=MR

Question 1 - 40
An indifference curve shows a various
combinations of that provide the same
___.

Answer 1 40
Utility

Question 1 - 50
Total cost equals fixed cost plus ___.
TC=FC+__

Answer 1 50
Variable cost
TC=FC+VC

Question 2 - 10
Gross domestic product is the ___.

Answer 2 10
Total value of final goods and services
produced in a nation.

Question 2 - 20
The equation for GDP is___.

Answer 2 20
C+I+G+NX
Consumption+Investment+Governme
nt Spending+Net Exports (ExportsImports)

Question 2 - 30
The CPI measures ___.

Answer 2 30
Inflation

Question 2 - 40
What is the difference between
nominal GDP and real GDP?

Answer 2 40
Nominal GDP is measured in current
year dollars.
Real GDP is measured using the price
level of a base year. This way, it can
adjust for inflation.

Question 2 - 50
An increase in aggregate demand (AD)
creates a(n) (1.)_____ gap. A decrease
in AD creates a(n) (2.)_____ gap.

Answer 2 50
1. Inflationary
2. Recessionary

Question 3 - 10
The current Chairman of the Federal
Reserve is ______.

Answer 3 10
Janet Yeller

Question 3 - 20
The Federal Reserve was created in
what year?

Answer 3 20
1913

Question 3 - 30
If the Federal Reserve to a recession
by __.

Answer 3 30
Lowering interest rates

Question 3 - 40
What does it mean if people refer to the
Fed as a
1. Hawk Fed
2. Dove Fed

Answer 3 40
1. Their primary goal is keeping
inflation low and steady
2. Their primary goal is keeping
employment high.

Question 3 - 50
What Federal Reserve District is Idaho
in?
And what city is our districts Federal
Bank located in?

Answer 3 50
12th
San Fran Cisco

Question 4 - 10
Ceterus Paribus, an increase demand
will ___ the price.

Answer 4 10
Raise

Question 4 - 20
Peanut butter and jelly are
compliments.
If the price of peanut butter goes up,
demand for jelly will ___.

Answer 4 20
Decrease

Question 4 - 30
Ramen noodles are an inferior good. A
decrease in income will ___ demand for
Ramen.

Answer 4 30
Increase

Question 4 - 40
What is the difference between an
increase in demand, and an increase in
quantity demanded?

Answer 4 40
An increase in demand is a shift of the
curve, and increase in quantity
demanded is a movement along the
curve.

Question 4 - 50
A price ceiling (such as rent controls)
set below equilibrium price will create
a ___ in the market.

Answer 4 50
Shortage

Question 5 - 10
The U.S. has an absolute in advantage
in the production of both guns and
butter, and a comparative advantage
in the production of guns.
Mexico has no absolute advantages,
and a comparative advantage in the
production of butter.
What results from this scenario?

Answer 5 10
The U.S. specializes in the production
of guns.
Mexico Specializes in the production of
butter.
U.S. guns are traded for Mexican
butter.
Both countries are able to consume
more of both goods than they would
without trade.

Question 5 - 20
The difference between the short run
and the long run is ___.

Answer 5 20
Prices are sticky in the short run, but
not in the long run.

Question 5 - 30
Using the IS/LM model, an increase in
the government spending results in a
shift of the (1)____ curve to the
(2)____.

Answer 5 30
1. IS
2. Right

Question 5 - 40
NAFTA creates a ___ between Canada,
the U.S., and Mexico.

Answer 5 40
Free trade area.

Question 5 - 50
In the long run, a perfectly competitive
firm earns ___ economic profit.

Answer 5 50
Zero
(Remember, economic profit is not the
same as accounting profit.)