Fundamentals 1
The study of how people make decisions when resources are scarce.
What is economics?
Two agents in the circular flow model?
The market value of all final goods and services produced within a country during a certain period of time
What is GDP?
The two approaches to measuring GDP
What is expenditure approach (who bought what) and income approach (who earned what)?
Three types of unemployment
What is structural, frictional, and cyclical?
The big picture, everything related to a country as a whole or a government. Ex. unemployment rate
What is macroeconomics?
The three steps to compute opportunity cost?
What is write down gain,loss, and then compute loss/gain?
This is calculated using current prices
What is nominal GDP?
The types of consumption
What is consumer durables, consumer nondurables, and services?
We get new technologies, some industries dies, and some are born.
What is structural unemployment?
Any item, whether a gift of nature, the result of production, or the result of human effort, that is used to produce goods and services.
What is resources?
Important for trade; the ability to produce a good or service at a lower opportunity cost than another producer?
What is comparative advantage?
This is GDP expenditures
What is C + I + G + NX?
Name one thing that is not included in GDP?
What is the sale of used goods/services or goods/services produced in previous years or financial instruments(bonds/stocks) or items produced in a foreign country?
If we are in a recession this is positive
What is cyclical unemployment?
The four types of resources
What is land, labor, capital, and entrepreneurial ability?
Results in a more efficient use of resources.
What is specialization?
Tires used in a Honda automobile is an example of
What is an intermediate good?
Imports are greater than exports
What is trade deficit?
This type of worker is jobless and has not actively sought work for five weeks.
What is unemployed and not in the labor force?
No matter what you do, you have to give up something?
What is opportunity cost?
A model that concisely describes how goods, services, resources, and money flow back and forth in an economy.
What is the circular flow model?
The output in each year multiplied by the prices in the base year.
What is real GDP?
Mary, a Nigerian citizen, works in the United States, her production is added to
What is US GDP?
Samantha quit her job at the landscaping company and has been trying to get hired at Home Depot, but has not received a reply to her application
What is frictional unemployment?