FSOT JOB KNOWLEDGE
1. Microeconomics - ✔️ ✔t️ he study of how individuals and firms make
decisions in a world of scarcity
2. opportunity cost - ✔️
✔E️very action or inaction has a cost; something
must be passed up to do something else
3. supply and demand - ✔️ ✔️ an economic concept that states that the
price of a good rises and falls depending on how many people want it
(demand) and depending on how much of the good is available
(supply)
4. market equilibrium - ✔️✔️ the point of intersection of demand and
supply curves of a given commodity
5. market failure - ✔️✔a️situation in which a market left on its own fails
to allocate resources efficiently.
Imperfect competition
inadequate information
Negative Externalities
Problems with equity/ failure to provide public goods
6. Capitalism - ✔️✔a️ n economic and political system in which a country's
trade and industry are controlled by private owners for profit, rather
than by the state. Lack of regulation leads to inequality and fraud
7. command economy - ✔️ ✔️An economic system in which the
government makes all economic decisions, setting allocation and
production. Prone to corruption and inefficiency
,8. Invisible hand - ✔️✔️ Consumers and firms serving their own self-
interest do the best for society. Proposed by Adam Smith.
9. Macroeconomics - ✔️ ✔️The study of economic trends on the national
level.
10. Macroeconomic variables - ✔️
✔️Output, consumption,
investment, government spending, net exports
11. GDP - ✔️ ✔️ Gross Domestic Product- the measure of a given
nation's output in a limited amount of time.
12. Consumer Behavior - ✔️ ✔️Marginal propensity to consume (as
income increases, consumers spend more).
13. Macroeconomic sectors - ✔️
✔️
a. Consumers
b. Businesses
c.Government
d. Foreign sector
14. Buisness cycle - ✔️
✔B️oom - GDP is high, consumption increases,
prices rise (inflation)
15. Types of unemployment - ✔️ ✔️
1. frictional - Unemployed are
waiting for work/ are between jobs
16. 2. structural - unemployment caused by shifts/ changes
(including technological ones) that reduce need for worker
17. government intervention - monetary policy - ✔️
✔️amount of
funds available for banks to make loans
18. government intervention - contractionary - ✔️✔c️ounteract
inflation by increasing taxes and decreasing spending to slow the
economy
, 19. government intervention - expansionary - ✔️
✔️lower taxes and
increased spending to promote growth and counteract unemployment
20. Federal Reserve System - ✔️ ✔️ The FED buys bonds and injects
money to facilitate contraction or sells bonds and withdrawals money
to facilitate expansion.
21. international trade - ✔️
✔️The exchange of goods and services
among nations, allowing a given nation to take advantage of broader
markets and specialize. Requires disposable income to purchase native
and imported products.
22. Mercantilism - ✔️ ✔A️colonial economic philosophy that holds
that there is a finite number of resources and nations are in
competition. Government policy should regulate trade so that a nation
exports as much as possible while importing as little as possible.
23. Colonialism (economic history) - ✔️ ✔️Enrich the metropole.
Colonies sell natural resources to the home country and buy processed
goods.
24. Navigation Acts - ✔️ ✔️Laws passed by the British to regulate,
monopolize and control American trade. Include the Molasses Act, and
the Stamp, Sugar and Townsend Acts. Customs officials were sent to
the colonies to collect and enforce the Acts.
25. Articles of Confederation (economic history) - ✔️
✔W️eak federal
government could neither prevent interstate trade disputes nor create
a tariff.
26. US Constitution (economic history) - ✔️✔C ️ongress can regulate
trade, international commerce and interstate commerce, and could
levy taxes. Commerce clauses would be interpreted more broadly in
the 20th century to support the administrative/ regulatory state.
27. Bank of the United States - ✔️
✔E️stablished by Congress,
supported by Hamilton and opposed by Jefferson. Provided a place for
1. Microeconomics - ✔️ ✔t️ he study of how individuals and firms make
decisions in a world of scarcity
2. opportunity cost - ✔️
✔E️very action or inaction has a cost; something
must be passed up to do something else
3. supply and demand - ✔️ ✔️ an economic concept that states that the
price of a good rises and falls depending on how many people want it
(demand) and depending on how much of the good is available
(supply)
4. market equilibrium - ✔️✔️ the point of intersection of demand and
supply curves of a given commodity
5. market failure - ✔️✔a️situation in which a market left on its own fails
to allocate resources efficiently.
Imperfect competition
inadequate information
Negative Externalities
Problems with equity/ failure to provide public goods
6. Capitalism - ✔️✔a️ n economic and political system in which a country's
trade and industry are controlled by private owners for profit, rather
than by the state. Lack of regulation leads to inequality and fraud
7. command economy - ✔️ ✔️An economic system in which the
government makes all economic decisions, setting allocation and
production. Prone to corruption and inefficiency
,8. Invisible hand - ✔️✔️ Consumers and firms serving their own self-
interest do the best for society. Proposed by Adam Smith.
9. Macroeconomics - ✔️ ✔️The study of economic trends on the national
level.
10. Macroeconomic variables - ✔️
✔️Output, consumption,
investment, government spending, net exports
11. GDP - ✔️ ✔️ Gross Domestic Product- the measure of a given
nation's output in a limited amount of time.
12. Consumer Behavior - ✔️ ✔️Marginal propensity to consume (as
income increases, consumers spend more).
13. Macroeconomic sectors - ✔️
✔️
a. Consumers
b. Businesses
c.Government
d. Foreign sector
14. Buisness cycle - ✔️
✔B️oom - GDP is high, consumption increases,
prices rise (inflation)
15. Types of unemployment - ✔️ ✔️
1. frictional - Unemployed are
waiting for work/ are between jobs
16. 2. structural - unemployment caused by shifts/ changes
(including technological ones) that reduce need for worker
17. government intervention - monetary policy - ✔️
✔️amount of
funds available for banks to make loans
18. government intervention - contractionary - ✔️✔c️ounteract
inflation by increasing taxes and decreasing spending to slow the
economy
, 19. government intervention - expansionary - ✔️
✔️lower taxes and
increased spending to promote growth and counteract unemployment
20. Federal Reserve System - ✔️ ✔️ The FED buys bonds and injects
money to facilitate contraction or sells bonds and withdrawals money
to facilitate expansion.
21. international trade - ✔️
✔️The exchange of goods and services
among nations, allowing a given nation to take advantage of broader
markets and specialize. Requires disposable income to purchase native
and imported products.
22. Mercantilism - ✔️ ✔A️colonial economic philosophy that holds
that there is a finite number of resources and nations are in
competition. Government policy should regulate trade so that a nation
exports as much as possible while importing as little as possible.
23. Colonialism (economic history) - ✔️ ✔️Enrich the metropole.
Colonies sell natural resources to the home country and buy processed
goods.
24. Navigation Acts - ✔️ ✔️Laws passed by the British to regulate,
monopolize and control American trade. Include the Molasses Act, and
the Stamp, Sugar and Townsend Acts. Customs officials were sent to
the colonies to collect and enforce the Acts.
25. Articles of Confederation (economic history) - ✔️
✔W️eak federal
government could neither prevent interstate trade disputes nor create
a tariff.
26. US Constitution (economic history) - ✔️✔C ️ongress can regulate
trade, international commerce and interstate commerce, and could
levy taxes. Commerce clauses would be interpreted more broadly in
the 20th century to support the administrative/ regulatory state.
27. Bank of the United States - ✔️
✔E️stablished by Congress,
supported by Hamilton and opposed by Jefferson. Provided a place for
