Terms
What is Inflation
increase in the average price of goods and services in terms of money
Gross domestic product
What is Debt
the amount of money or value that one individual owes to another person, and is obligated to repay, generally with interest.
the purchasing and entry of foreign-made products into the domestic market
What is Profit
The money a business has left over after all its costs (like materials and wages) have been paid.
What is an opportunity cost
The value of the best alternative when a choice is made. It represents the potential loss of gains from other options when one is chosen.
What are Interest Rates
The cost of borrowing money or the return on savings (how much added money you have to give back when giving back borrowed money)
What is scarcity
human wants and needs are unlimited, but the resources available to satisfy them are limited.
What is the defference between Micro and Macro economics
Microeconomics: the economic behavior individuals, households, and firms
Macroeconomics: the economy as a whole, analyzing broad issues like economic growth, inflation, employment, and government policies at national or global levels
What is a Tariff
A tax imposed by a government on imported goods
What is the law of demand
as the price of a good increases, the quantity demanded will decrease, and vice versa.
What are Transfer Payments
What is a price floor
A government imposed regulation that sets a minimum price for a good, service, or resource.
What is a price cellieng
A government-imposed limit on how high a price can be charged for a good or service.
What is a market failure
a situation in which the free market, on its own, does not efficiently allocate resources.
What are Substitutes
Goods that can be used in place of one another
What is Elasticity
how much the supply or demand for a product changes in response to a change in price
What is Recession
decline in economic activity spread across the economy, lasting more than a few months (
What is Unemployment Rate
percentage of the labor force that is jobless and actively seeking employment.
What is Market Equilibrium
The point where the quantity of a good supplied is equal to the quantity demanded.
What is a Monopoly market
A market where there is only one seller. With no competition, a monopoly can often control prices.
What is Absolute advantage
The ability of an individual, company, or country to produce a good or service using fewer resources (like labor, time, or raw materials) than another producer
What are the 4 stages of the business cycle
Expansion, Peak, Contraction (or recession), and Trough
Whats is Marginal Utility
The additional satisfaction or benefit that a consumer gets from consuming one more unit of a good or service.
What is Asymmetric Information
A situation where one party in a transaction has more or better information than the other party.