Question 1: What is the relationship between inflation and unemployment (in numerical, percentage value, the natural rate of unemployment) and the danger we face if the unemployment rate drops below that natural rate. What percentage is the Natural Rate of Unemployment?
Question 2: What is the definition of Gross Domestic Product (GDP) and its components. What was the approximate size of the US GDP last year?
Question 3: What are opportunity costs and how do they help a firm decide how to maximize profits?
Question 4: What is the definition of inflation and why is it harmful?
Question 5: How do the laws of supply and demand determine that a basketball player can earn $2.2 million, but a teacher earns only $52,000.00? Is this fair?
Question 6: What are the opportunity costs of President Obama's proposed health care plan?
Question 7: What are the conditions of perfect competition and why would a firm want to violate them? What are examples of violations of each condition?
Question 8: If the US were to enter a serious recession (a condition we now find ourselves in,) what would the economist Keynes advise the US government to do--borrow money and spend it or cut spending to reduce the deficit?
Question 9: As a result of a hurricanes Katrina and Rita, thousands of Cajun evacuees immigrate to Little Rock. What will happen to the price of the average dinner at a Cajun restaurant ceteris paribus? Has the change caused the Demand or Supply curve to shift left or right causing movement along the supply or demand curve to a higher or lower equilibrium point?
Question 10: The Florida experiences great economic growth as well as growth in the population. Chart what will happen as a result of the bad tomato harvest and the growth on the same chart ceteris paribus. Has the change caused the Demand or Supply curve to shift left or right causing movement along the supply or demand curve to a higher or lower equilibrium point?