BADM 7200 -Econ Study Guide
What are the takeaways from I, Pencil? - Answer Not a single person on the face of the earth
knows how to make a pencil.
What two documents were published in 1776? - Answer Wealth of Nations (Adam Smith),
Declaration of Independence
What economics are we focusing on in class? - Answer Neoclassical economics
What does Friedman argue is the relationship between economic and political freedom? -
Answer economic freedom is an essential requisite for political freedom
Did Adam Smith and Thomas Jefferson believe that concentrated government power would
allow policy makers to maximize utility for citizens? - Answer No
What is GDP? - Answer the final value of all goods and services produced in a given period of
time
What federal agency compiles GDP in the US? - Answer the Bureau of Economic Analysis
(BEA)
What are the components of GDP? - Answer Consumption (C), Investment (I), Government
purchases (G), Net exports (NX)
What is taken into account for GDP? - Answer Final goods,
How does Paul Krugman describe the magnitude of the Great Recession? - Answer a human
disaster, corrosive for the present and the future, will do enormous damage to our nation
What does Krugman argue is the impact of recession on young people? - Answer this will
scar young people's careers for their entire lives
Does Krugman believe the stimulus programs implemented in the US and Europe were
adequate? - Answer No, both the US and Europe have implemented austerity (reverse of
stimulus)
What does Robert Barro argue is the origin of the 2008 recession? - Answer housing market
What are the takeaways from I, Pencil? - Answer Not a single person on the face of the earth
knows how to make a pencil.
What two documents were published in 1776? - Answer Wealth of Nations (Adam Smith),
Declaration of Independence
What economics are we focusing on in class? - Answer Neoclassical economics
What does Friedman argue is the relationship between economic and political freedom? -
Answer economic freedom is an essential requisite for political freedom
Did Adam Smith and Thomas Jefferson believe that concentrated government power would
allow policy makers to maximize utility for citizens? - Answer No
What is GDP? - Answer the final value of all goods and services produced in a given period of
time
What federal agency compiles GDP in the US? - Answer the Bureau of Economic Analysis
(BEA)
What are the components of GDP? - Answer Consumption (C), Investment (I), Government
purchases (G), Net exports (NX)
What is taken into account for GDP? - Answer Final goods,
How does Paul Krugman describe the magnitude of the Great Recession? - Answer a human
disaster, corrosive for the present and the future, will do enormous damage to our nation
What does Krugman argue is the impact of recession on young people? - Answer this will
scar young people's careers for their entire lives
Does Krugman believe the stimulus programs implemented in the US and Europe were
adequate? - Answer No, both the US and Europe have implemented austerity (reverse of
stimulus)
What does Robert Barro argue is the origin of the 2008 recession? - Answer housing market
