Chapter 13
Chapter 14 & 15
Chapter 15 &16
Chapter 16
Chapter 16
& 17
100
The more money that is in circulation, the greater the inflation.
What is the relationship between money supply and inflation?
100
To have a stable and healthy economy and to avoid a lot of inflation and major recession.
What are the responsibilities of the Federal Reserve?
100
Used to defend supply-side economics because of shows connection between taxation rates and government revenue-- it is evidence that tax cuts do not lead to higher tax revenues.
What is a Laffer Curve?
100
Tariffs, quotas, and nontariff barriers
What are barriers to international trade?
100
The ability to solely control and carry out an economic activity efficiently or he ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.
What are absolute and comparative advantages.
200
Banks do this by selling loans.
What is how banks are able to “create” money in the economy
200
The Fed's tools of monetary policy
What are open markets, changing reserve requirements, and setting the discount rate?
200
One is usually carried out by the Federal Reserve and gives attention to the handling of interest rates as well as the general quantity of money in circulation. While the other is determined by the legislative and executive branches where it deals with the general taxing and spending actions by the government.
What is the difference between monetary and fiscal policy?
200
Pros: Tariffs protect foreign competitors from getting ahead in a growing industry Creates jobs for domestic workers Cons: Weakens industry without competition Job outsourcing = less U.S. competitiveness Slow economic growth
What are the pros and cons of free trade and protectionism?
200
If countries A and B allocate resources evenly to both goods combined output is: Cars = 15 + 15 = 30; Trucks = 12 + 3 = 15, therefore world output is 45 m units. It is being able to produce goods by using fewer resources, at a lower opportunity cost, that gives countries a comparative advantage.
What is how to calculate each and determine who has a comparative advantage in a scenario?
300
People that are at least 16 and made an effort in the last month to find a job.
What is the definition of unemployed?
300
People spend more than the supply can keep up with and inflation occurs or people spend less excess money and economy does not grow.
What is the effect of having too little or too much money in the economy?
300
The only way to increase GDP was through a change in demand instead of the traditional change in supply.
What are the economic theories of John Maynard Keynes?
300
NATO (what is it in general)
What is a free trade agreement?
300
An institution or system for dealing in the currency of other countries. Also, the currency of other countries.
What is foreign exchange?
400
Theories that were anti-government intervention in the economy and a free market.
What are the key economic theories of Milton Friedman?
400
A classical theory where economic growth is theoretically accomplished through investing in capital in order to lower down barriers for goods and services.
What is supply-side economics?
400
It helps to progress us forward as a global economy by using one another’s resources to consume/ use what is outside our environment’s means.
What are the reasons why trade between countries occurs?
400
Trade, or commerce, involves the transfer of goods or services from one person or entity to another, often in exchange for money. A network that allows trade is called a market.
What are needs to be in place for successful trade to occur?
400
Whenever the value of its exports exceeds the value of its imports or whenever the value of the of the products exceeds the value of the products it imports.
What is a trade surplus or trade deficit?
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