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An Intro to Economics Flashcards | StudBud
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An Intro to Economics
An Intro to Economics
15 terms
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StudBud Administration
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#TANSTAAFL
Flashcards
15 cards
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Practice quiz
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Questions
15
Answers
1
Inflation causes
The wage/ price spiral
War
More valuable money
Taxes
2
Gresham's Law says
Prices will never stop rising
Bad money drives good money out of circulation
Good money drives bad money out of circulation
Good money circulates rapidly
3
What is the last stage of inflation?
Money changes hands very quickly, it loses its value
People decide to spend their money, it changes hands slowly.
Money changes hands quickly, value in keeping the money.
Money changes hands slowly, people wait for prices to fall.
4
Inflation is
Rising prices
An increase in the amount of money
Increasing taxes
Rising wages and prices
5
An example of the law of supply and demand is
Rising wages cause rising taxes
The amount of money goes up and the value goes down
The amount of taxes goes up and the value of money goes down
Rising prices cause rising wages
6
A Law of Economics is
A fact of life which no one can change
A ruling passed by Congress
Impossible for you to understand
A guideline which can be changed
7
What does legal tender mean?
It's money because the government says it has value.
Legally you are tender hearted
Coins should be reeded and traded
Buying a car is now legal
8
During severe inflations, wage/ price controls have
Usually worked
Always worked
Worked 92% of the time
Never worked
9
A recession is
An incomplete depression
Worse than a depression
Caused by high emloyment
A long depression
10
What is velocity in economics terms?
Speed at which money changes hands
Speed at which I make a deposit in the bank
Speed at which my car drives
Speed at which I clean my room
11
What is the business cycle?
Period of inflation that continues indefinitely
Wages and prices increasing
Boom- Bust Cycle: Inflation, recession, inflation, recession
Workers losing jobs, prices rising
12
Why are some coins reeded?
Show that it hasn't been clipped
To increase its value
Offer better handling
Designed for rolling smoother
13
What does TANSTAAFL mean?
To all: never stand tall around alligators for lunch
The alligators never stand tall almost always for lunch
To all nations stand tall and ask for lunch
There ain't no such thing as a free lunch
14
Money is
Always legal tender
The cause of inflation
The most worthless thing a person can have
The most easily traded thing people can have
15
A depression is
A devaluation
A correction period following an inflation
Caused by high unemployment
No longer possible
