Macro Fundamentals
Opportunity Cost
The point at which the supply and demand curves meet
Equilibrium Point
A market structure where products are similar across the board and prices are low
Perfect Competition
The average level of price increases across the economy
Inflation Rate
The type of investment with the lowest risk and reward
The act of making a decision between one good or service over another
Trade-off
The type of intervention that occurs when a government gives an industry money to increase supply
Subsidies
This is the model in which businesses and households interact with the resource and product markets
Circular Flow (Model)
The dollar is this type of money, which has value because a government gives it value
Fiat Money
Mutual Funds and Bonds carry this amount of risk and reward
Medium Risk/Reward
The measure of how reactive the demand of a good or service is to a change in price
Elasticity
Negative Relationship
Out of the 4 resources available on the resource market, this is the one that business owners provide to a business
Entrepreneurship
This is the result when a government devalues their money by printing too much of it
Hyperinflation
Cryptocurrencies and Collectables are in this very high risk/reward section of the risk/reward pyramid
Speculation
This is why we need to make decisions in an economy/why there are limited resources in an economy
Scarcity
A government intervention where maximum price is set under the Equilibrium point
Price Ceiling
The overall valuation of a country's total economic health
Gross Domestic Product (GDP)
Money has three main functions; this one tells us how much money is actually worth
Store of Value
This type of investment exists outside of the risk/reward pyramid, and is made up of precious metals like gold or silver
Commodities
The choice in a trade-off scenario where you will gain the most overall benefit
Rational Decision
The amount of money lost when the government intervenes in the economy
Deadweight Loss
In an oligopoly, this is when firms meet to raise prices across the board to illegally increase profits
Collusion
The Federal Reserve/"The Fed"
These stock market investors are optimistic about the future of the market
Bullish Investors/Bull Market