Introduction to Econ
Supply and Demand
Measuring the Economy
Fiscal+Monetary Policy
Foreign Exchange Rates
100
An economic term to describe the inputs that are used in the production of goods or services in the attempt to make an economic profit.
What are the factors of production
100
1. Number of Buyers: increase or decrease in people wanting to but things in the market. 2. Tastes: what is in fashion at the time, fads, or stores stop selling things because of the change in season 3. Income: A rise or fall in income that causes consumers to buy either normal goods or inferior goods. Normal goods are any name brand good and inferior goods are any off-brand goods. 4. Expectations of Buyers: what consumers think will happen to goods because of outside services 5. Price of Related Goods: Prices of substitutes and compliments cause changes in demand. A substitute is a similar good to the product that is being produced. It competes for more consumers with the product. A compliment is something you buy along with the product.
What are the five demand shifters?
100
This adjustment transforms the money-value measure, nominal GDP, into an index for quantity of total output.
What is Real GDP?
100
A committee that meets regularly to set monetary policy, including the interest rates that are charged to banks?
What is the Federal Open Market Committee?
200
In short supply; shortage.
What is Scarcity
200
A state in which opposing forces or influences are balanced.
What is Equilibrium
200
The market value of all the products and services produced in one year by labor and property supplied by the citizens of a country.
What is GNP?
200
A general increase in prices and fall in the purchasing value of money.
What is a Deficit?
200
types of inflation?
What is demand-pull and cost-pull?
300
An original economic system in which traditions, customs, and beliefs shape the goods and the services the economy produces.
What is Traditional Economy
300
term to describe when the demand exceeds the supply.
What is Shortage?
300
These are not included in GDP
What are Sales of goods that were produced outside our domestic borders, Sales of used goods, Illegal sales of goods and services,Transfer payments made by the government, Intermediate goods that are used to produce other final goods
300
something, typically money, that is owed or due.
What is a debt?
300
An increase in the marginal propensity to expend
What is raises output by raising induced expenditures?
400
These ten ______ help define economics as a whole
What are the principles of economics
400
A term where the supply exceeds the demand?
What is a Surplus?
400
GNP includes...
What are the income earned by citizens, the price to manufacturing of tangible goods, provision of services?
400
The minimum interest rate set by the Federal Reserve for lending to other banks.
What is the Discount Rate?
400
A group of people who argue economic growth can happen when production barriers are lowered for suppliers.
What is Supply-Side Economics?
500
(1) resources are used to produce one or both of only two goods, (2) the quantities of the resources do not change, (3) technology and production techniques do not change, and (4) resources are used in a technically efficient way.
What are the four basic assumptions?
500
The price goes up, consumers’ buying habits stay about the same, and when the price goes down, consumers’ buying habits also remain unchanged.
What is Demand In-elasticity?
500
A general increase in prices and fall in the purchasing value of money.
What is Inflation?
500
The percentage of deposits which commercial banks are required to keep as cash
What is the Required Reserve Ratio?
500
Something that is bound to change from consumer to consumer.
What are The Consumer's Tastes and Preferences?
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