Terms and Concepts
The study of how society employs resources to produce goods and services.
Economics
In capitalist societies, land and businesses are typically owned by ________ and not governments.
Individuals
Soviet Union
What does GDP stand for?
Gross Domestic Product
How many phases are there in the business cycle?
Four
This individual is known as the Father of Economics.
Adam Smith
Term for when the state, rather than private owners run some businesses.
State Capitalism
The quantities of products consumers are willing to buy at different prices.
Demand
The general rise in prices of goods and services over time is known as ________.
Inflation
The amount of money that the federal government spends beyond what is gathers in taxes.
National Deficit
Thomas Malthus led to the creation of this theory which believed that resources would run out if the rich held most of the wealth and the poor had most of the population.
The Dismal Science Theory
How many basic rights exist in a capitalist society?
Four
In socialist countries, some of the best and brightest individuals move to capitalist countries for greater economic incentives. This is also known as ________.
Brain Drain
This index is the government's measurement of the cost of goods and services on a month-to-month basis.
Consumer Price Index (CPI)
A recession is defined as ____ or more consecutive quarters of decline in the GDP.
The idea that people improving their own lives leads to economic prosperity for society at large is known as the ________ Theory.
The Invisible Hand Theory
When the marketplace decides what and how much of a product are produced is known as ______.
Free Market
Perfect Competition, Oligopoly, Monopoly and _________ are the four degrees of economic competition.
Monopolistic Competition
When the economy is slowing, but prices are also rising, is known as __________.
Stagflation
Term for a period in the business cycle when the economy is growing.
Economic Boom
The federal government's efforts to keep the economy stable by increasing or decreasing government spending/taxes.
Fiscal Policy
This US President proposed four additional basic rights in a capitalist society?
Franklin D. Roosevelt
The market price is also known as _________ which is determined by supply and demand.
Equilibrium Point
What are the four types of unemployment?
Frictional, Structural, Cyclical, and Seasonal
This organization controls monetary policy decisions in the United States.
The Federal Reserve Bank (The Fed)