Unit 1
A decrease in consumer income would impact...?
Demand Curve
The global meltdown known as The Great Recession with the housing market crash was caused by...
Over extension of debit/credit by lenders
If the rights of a property are unassigned it is...
Open access
what are two protectionist policies
tariffs and quotas
What book did Adam Smith write ?
Wealth of the Nations
Land, labor, capital (physical and human), and entrepreneurs are the...?
factors of production
Based on teh economic conditions described in the Biege book report, the FOMC should...
Raise the federal funds rate to decrease consumer spending and slow inflation
What type of property gives the most incentive for conservation of resources and investment
Private
outsourcing is a practice of...?
hiring someone else to do a job that is usually done within a country
Why does using a ration of taxes-GDP give a better idea of a country's tax system than just measuring how much tax revenue they collect?
Knowing how much tax revenue is collected does not tell us enough about the overall economy without knowing how big it is
abstention by governments from interfering in the workings of free market is what?
Laissez faire
If GDP is declining and the economy is entering a recession, which part of the business cycle is indicated and what would likely be the policy of the federal reserve
Contraction/Expansionary policy (loose money policy)
What are examples of state property
Parks, libraries
what would cause the wealthy and middle class to see very little growth?
automation and outsourcing
Using taxing and spending bills to control the economy
Fiscal policy
The efforts applied to the production of goods and services is known as...? (ie. job skills training and education)
Human Capital
Which monetary policy implementation tool is the primary tool the fed uses to steer the federal funds rate into the FOMCs target range..
Interest on reserves
A trade secret is?
Rights on confidential information that the owner keeps secret
what is a benefit of globalization?
increased standard of living
As a consumer looking to purchase a home, a loan from the bank would be the MOST cost effective for the consumer (because the interest rates would be lower) when the fed...?
Lowered the IOR to drive the Target Range for the FFR down
who is known as the father of modern economics?
Adam Smith
How many federal reserve banks are there?
12
Uses the money supply to control the economy
Monetary policy
What impact didi NAFTA have on manufacturing in the US
Manufacturing decreased
What is not a factor of globalization
Self-sufficiency