Econ Final Review

Which form of investment tends to have the highest rate of return over time?

According to the Invisible Hand theory:

In a market economy, what guides prices to equilibrium?

Which of the following is the most demand elastic?

What are the primary functions (2) of the Federal Reserve?

When a university raises tuition to increase revenue, they are assuming demand for their service is inelastic

The reduce inflation the Feederal Reserve could

What is a trade-off?

Why should you begin to invest as early as possible?

The Rule of 72 helps you calculate what?

Which is an appropriate Fiscal Policy solution to create economic growth?

When input costs rise, what happens to prices?

If your interest rate is 5%, and inflation is at 2%, what is your REAL interest rate?

Define Cyclical unemployment

If the cost of cereal goes up, what happens to the milk market?

Purchasing cars for a mobile cleaning service would be considered:

Which is NOT included in GDP?

What is the best way to diversify your investment portfolio?

What is the formula for GDP?

Why do all countries face the problem of scarcity?