GDP
GDP stands for what:
Gross Domestic Product
Give an example of a physical good that could be used as currency that is not a paper bill or metal coin
Answers may vary
What is Globalization?
The process by which people their ideas and their activities in different parts of the world become interconnected
What type of economy is the United States?
A mixed economy
Apple hires 300 new employees. Are they in the product or resource market?
Resource Market
What is the GDP that measures for inflation?
Real GDP
Name the missing characteristic of money
Durable, Uniform, ___, Portable, Limited, Accepted
Double Jeopardy
Divisible
if Japan produces 500 cars and 300 socks per day and Italy can produce 600 cars and 400 socks per day who has the absolute advantage in car production
Italy has the Absolute Advantage
What are the 4 factors of production?
Land, Labor, Capital, and Entrepreneurship
When the federal gov't. can influence the economy by its spending, taxing, and borrowing of local, state, and federal gov't. is a description of what type of policy?
Double Jeopardy
Fiscal Policy
You just bought a brand new shed! What would be included in its GDP? A. The price of wood, nails, etc. that are used to make the shed B. Just the price of the completed shed
B. Just the price of the completed shed
This term measures the change over time in the prices paid by consumers for a representative basket of goods and services. (The tool that measures inflation)
Consumer Price Index (CPI)
The nuclear bomb being created by many countries after WW2 is an example of what type of globalization?
Military globalization
This type of economic system bases its decisions on customs and tradition
Traditional Economy
Monetary Policy is controlled by which body
The Federal Reserve
If the Real GDP is $100 and the number of people in a country is 20, then the Real GDP per capita of that country is:
Real GDP per capita is 5
When there is not enough resources to satisfy the desires of all people, that is called:
Double Jeopardy
Scarcity
What are the 5 aspects of globalization?
Economic, Technological, Cultural, Political, Military
The factors of production are owned by who in a command economy
The government
Adam Smith is considered the father of this economic philosophy that advocates for supply and demand to be the main determinants of the economy?
Neoclassical Economics
What is the formula for calculating GDP (expenditure model)
C = consumer spending +
I = investment spending +
G = government purchases +
X = exports -
M = imports
What economic model best represents the resource and product markets?
The Circular Flow model
When a good can be created at a lower relative opportunity cost to another good
Comparative Advantage
What is an example of a disadvantage that is associated with a free market economy?
Does not provide basic needs for all citizens
Lots of risk & uncertainty
Struggles to provide services that aren't profitable (Roads, military, water, etc...)
Can easily fail if certain conditions aren't met
Also called Demand Side economics, this economic philosophy supports increased deficit spending to "kick start" economic activity
Keynesian economics