National Economics Challenge

This page contains preparatory material for the David Ricardo division of the National Economics Challenge (rules). I competed in 2012 and 2013, and knowing what problems to expect was very helpful.

U.S. Economic Indicators

GDP: $18.5 Trillion (2016)

Debt: $20.5 Trillion (111% of GDP)

Deficit: 600 Billion (3% of GDP)

Unemployment Rate: 4.1%
Inflation Rate: 2%
CPI: 247 (base year 1982)

U.S. Economic Positions

Chair of the Federal Reserve: Janet Yellen
Secretary of the Treasury: Steven Mnuchin
Council of Economic Advisers Chair: Kevin Hassett
National Economic Council Director: Gary Cohn

Major Laws

Budget Control Act of 2011: $900B (potentially $2.4T) increase in the debt ceiling; $917B in cuts over ten years
Dodd-Frank Act: Massive economic regulation
Sarbanes–Oxley Act: Accounting Reform and Investor Protection
American Jobs Act: removes regulation

Important Works

The Wealth of Nations (Locke) - capitalism
The Communist Manifesto (Marx) - communism
Human Action (Ludwig von Mises) - Austrian school

Miscellaneous Info

Currency.pdf

Laffer curve

Four types of market failure: public goods, market power, externalities, information asymmetry

Income effect

FOMC, FDIC, FTC

Paradox of thrift

Choke price, Required rate of returm (RRR), IPO

Stock market indices: Dow 30, S&P 500 (large-cap stocks), NASDAQ Composite (3000+ common stocks)

BRIC

Euro debt crisis

The payroll tax funds social security

Fiscal year: President proposes budget on February, Congress passes budget by October, the beginning of the fiscal year

Recession: two sucessive quarters of negative growth of GDP

Practice Tests

Past regional and national exams are available, but in my experience they are much more difficult than the current regional or state exams. I would recommend working through the following practice questions first.

Microeconomics

Macroeconomics

International and current events

Quiz bowl