Supply & Demand
he amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.
What is Supply and Demand ?
the central bank of the United States
What is Federal Reserve ?
what economy do most countries have ?
What is Mixed Economy ?
what is trade
the exchange of goods between people
What does GDP stand for?
Gross Domestic Product
What is the Law of Demand?
What is the quantity of a good demanded falls as the prices rises, and vice versa.
What is the role of the Federal Reserve ?
The responsibilities of the Federal Reserve include influencing the supply of money and credit
In a command economy, decisions are based on......
the government
what is the difference between absolute advantage and comparative advantage?
In absolute advantage, one country can produce more than the other USING FEWER RESOURCES while in comparative advantage , one country can produce a good or service at a LOWER OPPORTUNITY COST THAT OTHERS CAN
What are the three basic economic questions?
1) What should be produced
2)How should it be produced
3)For whom should it be produced
What are the shifters in Demand?
Changes in
-Income, # of consumers, consumer taste and preference, consumer expectation, price in complementary and substitute goods
What is the discount rate
interest that the bank charges for loans
What is barter?
Exchanging of goods and services without money
What are the 5 trade barriers?
Tariff, Quotas, Embargos, Standards, and Subsidies
what are incentives
Something that makes you do something
When do you have equilibrium price?
The quantity of goods supplied is equal to the quantity of goods demanded.
FOMC??
Federal Open Market Committee
What are three out of the seven allocation strategies?
Price, Authority, Force, Lottery, First come first served, Majority rule, Personal characteristics.
The value of one currency for the purpose of conversion to another
An exchange rate
What are the three main business types
Sole proprietorship
Partnership
Corporation
Marginal Utility is.......
the additional satisfaction a consumer gains from consuming one more unit of a good or service.
Who makes up the FOMC?
members of the board of governors and the presidents of the twelve reserve banks
What are the four market structures in a mixed-market economy?
Pure/Perfect Competition
Monopolistic Competition
Oligopoly
Monopoly
What is the difference between trade surplus and trade deficit?
Trade surplus- exports exceed imports
Trade deficit-imports exceed exports
What is the formula for GDP?
C+G+I+(X-M)