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Challenge 1: Whatever Happened to Penny Candy?
Economics terms for Whatever Happened to Penny Candy?
Terms in this set (47)
A non-precious metal like copper or nickle.
The boom/bust cycle. Prosperity followed by recession followed by recession, and so forth.
A sandwich coin. A coin made of layers of different metals.
A disk of base metal which can be used as a substitution for a coin.
On what schools of economic theory is the book PC based off of?
Austrian and Monetarist
What are the origins of the terms for these schools of economic theory?
Austrian, because the founder is thought to be from Austria. Monetarist, because these economists place importance on the quantity of money circulating in the economy.
Name individuals who represent the schools of economic theory.
Austrian, Alan Greenspan, Friedrick A Hayek (stands for freemarkets), James A Buchan.
Monetarist, Milton Friedman
Silver that is 90% pure
Are coins dated 1965 to present really coins? Why?
No, because they don't contain precious metal
when each year prices raise 10% or more
practice of giving things to poor people
welfare for rich people
Law of economics
fact of life
there ain't no such thing as free lunch
making fake money
shaving the edges of coins off
notches in a coin
melting and reminting coins adding base metal to the mixture in each time
that bad money drives good money out of circulation
Law of supply and demand
when the supply if something goes up, the cost of that thing per-unit goes down
increase in amount of money
Which statement is true. A. Inflation causes rising prices. B. Inflation is rising prices
1 ounce of silver
Where did the dollar originate
in Bohemia in the Czech Republic
How did the dollar get its name
Joachimthaler to Thaler to Daler to dollar
The most easily traded item
a disc of gold or silver
The name of the mint on a coin
Legal tender law
A law saying that if you are offered paper money it must be traded or the debt is canceled. Originally started by Kubli Khan
legal tender money
What gives Federal Reserve notes their value
The legal tender law
What are Silver certificates
an IOU from the bank
What is the reason for inflating in a dictatorship
they need money but I can't raise taxes for fear of being overthrown
What is the reason for inflating in a democracy?
politicians promising things in an election but they do not have money for
Besides using money to inflate how else do modern politicians inflate
banks and Federal Reserve
What is the big lie
that we can give you what you want and somebody else will pay for it
Is the wage/price spiral a cause of inflation or a result of inflation?
A correction period following an inflation
The beginning of a depression that never went all the way
A decrease in the amount of money
True or false if the demand for money falls money changes hands faster
What are three stages of inflation -
Stage One: People save their money causing prices to fall. Newly printed money is saved and does not enter the market.
Stage Two: People decide to spend the newly created money before prices or products increase more than they already have. People speed up their buying. Demand for dollars fall and velocity increases. Money changes hands faster in Stage Two of inflation. Stage Three: Money is losing it's value. People trust products more than money.
The speed at which money changes hands
Demand for money
The desire to hold money rather than trade it away
True or false if the demand for money falls the money changes hands faster
What is the business cycle and what causes it
The business cycle is the up, down, up, down, activity of the government to inflate, stop inflating, inflate, stop inflating. The business cycle is caused by the amount of money being shifted up and down by the government.
Example of the boom/bust cycle
Tulipmania in Holland
THIS SET IS OFTEN IN FOLDERS WITH...
Exploring Creation with Physical Science: Module 2
Exploring Creation with Physical Science: Module 3
Whatever Happened to Penny Candy?
Exploring Creation with Physical Science: Module 4
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