Economic Principles and Labor Market Dynamics Quiz

Supply in economics refers to the quantity of goods and services that producers are willing to sell at a given price.

GDP stands for Gross Domestic Product, which is the total value of all goods and services produced in a country.

Perfect competition is characterized by identical products being sold by many small firms, with no single seller having a significant influence on the market price.

The primary function of a labor union is to negotiate on behalf of its members for better wages, working conditions, and benefits.

Elasticity of demand measures how the quantity demanded of a good or service changes in response to changes in its price.

The Phillips Curve is a graphical representation showing the inverse relationship between inflation and unemployment.

The 'invisible hand' concept in economics refers to the self-regulating nature of the market, where individuals pursuing their own interests unintentionally contribute to the overall economic well-being.

Opportunity cost in economics refers to the value of the next best alternative that must be forgone when a decision is made to allocate resources.

Structural unemployment occurs when a worker loses their job due to changes in the structure of the economy, such as technological advancements.

The Laffer Curve illustrates the relationship between tax rates and tax revenue, showing that there is an optimal tax rate that maximizes government revenue.

The 'crowding out' effect in macroeconomics occurs when an increase in government spending leads to a decrease in private investment.

The 'broken window fallacy' is the mistaken belief that the destruction of property creates economic stimulus, neglecting the opportunity cost of the resources used for repair.