Question

1.    What is the science of Economics? Explain the definition.

2.    What kinds of resources do you know? Examples

3.    Examples of the capital resources (name as much as you know)

4.    What are the sources of income for households?

5.    What are the disadvantages of Partnerships?

6.    What are the roles of government?

7.    The 'law of supply' suggests that …

8.    The ‘law of demand’ suggest that …

9.    What is GDP? Explain.

10.    What is the definition of recession and the signs? Explain.

11.    Provide the examples of limitations to the GDP.

12.    What is the labor force?

13.    What sources of unemployment do you know? Explain briefly their meaning with examples.

14.    What is inflation?

15.    What are the three main causes of inflation?

16.    Name the factors that determine economic growth.

17.    What is the multiplier effect? Examples of such a situation.

18.    Provide the example of Assets.

19.    Provide the example of liabilities

20.    What is barter?

21.   What are the functions of money?

22.    What are the properties of the ideal money?

23.    What is check?

24.    Explain the structure of the Federal Reserve System

25.    What is fiat money?

26.    What is the job of the Federal Deposit Insurance Corporation (FDIC)?

27.    What are the Fed Goals?

28.    What is a subprime mortgage?

29.    Name all the elements of M1.

30.    Name all the elements of M2

31.    What is dollarization?

32.    What is currency union?

33.    What is asymmetric information?

34.    What was the name of the first bankers?

35.    Government Stabilizes the Economy through two different tools. What are they?

36.    Monetary policy –actions by the Federal Reserve System, and Fiscal policy- Actions by ….

37.    What is the discretionary fiscal policy?

38.    What is the automatic fiscal policy?

39.    What is a budget deficit?

40.    National Debt. Who do we owe most of the money? How long can the country run a debt?

41.    What is national debt? What do you know about national debt?

42.    One of the problem with Fiscal policies is so-called Leg problem. Explain.

43.    What are the problems with the federal budget?

44.    What did you learn from your term paper?

Answer 1

1. Economics is a social science that uses scientific theories to build models that explains common behavioural and economic phenomenon.
2. There are broadly three types of resources – a) Human resource which includes labour Capital resource which includes capital goods c) Technological resources – Having modern technologies.
3. Example of capital goods include tools, equipments, buildings, machinery and other produced means of production.
4. Household income sources include wages, salaries, investment returns, retirment accounts and welfare payment.
5. A) Difficult to withdraw funds b) lack of harmony c) Lack of confidence,
6. To maintain law and oder, to increase welfare in society,
7. As price increases, sellers supply more.
8. As price increases, consumers buy less. Demand negatively sloped.
9. GDP is the market value of final goods and services produced by a country within geographical locations of the counrh
10. Recession occurs when growth rate of GDP is lower for a long time. Output significantly decreases during this period.