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