Introduction to Economics
What are the two branches of Economics?
Microeconomics & Macroeconomics
This economy is also known as the 'Private Enterprise" economy.
Market Economy
Quantity of goods or services that consumers are willing and able to buy at a particular price.
Demand
A developed economy is characterized by what metric...
Gross Domestic Product
This economic indicator predicts where the economy is heading...
Leading
What is the measurement concept that is used by individuals to make decisions?
Utility
In this economy, the government controls all elements of the economy and establishes how income is distributed.
Centrally Planned Economy
Quantity of good or service a business is willing to provide within a range of prices.
Supply
This economic indicator does not adjust until after the economy has experienced change...
Lagging
These guidelines detail how money is collected and spent at all levels of government
Fiscal Policy
The potential benefits that an individual, investor, or business misses out on.
Opportunity Costs
In this economy, market forces and self-interest determine whar goods are created and sold.
Market Economy
This intersection is when supply and demand are equal.
Equilibrium
This individual first discussed Absolute Advantage in his book "The Wealth of Nations" published in 1776.
Adam Smith
Decisions with this impact the amount of money in circulation...
Monetary Policy
What are the two main areas of Macroeconomic Research?
Long-Term Economic Growth
Short-Term Business Cycles
This country comes the closest to being the definition of a "Market Economy".
The United States
The maximum price a customer is willling to pay for a product or service.
Willingness to Pay
When countries produce high-quality items and import from other countries items that they too also produce at a high standard... German Cars and France's Wine...
Comparative Advantage
This measures the change in prices in an economy and is the most popular measurement of inflation and deflation...
Consumer Price Index (CPI)
The income provided by businesses and then spent by individuals on goods and services is known as what?
Circular Flow of Transactions
In this economy, citizens own small household items and furniture.
Centrally Planned Economy
Two types of differences that affect WTP...
Extrinsic & Intrinsic
What are some problems an economy in transition might experience...
Inflation, Increased Unemployment, and widening income gaps...
This economic indicator for Leading involves a # of these... hint: Think Hammer and Nail...
Housing Starts