Unit 1
Name 2 of the 4 factors of production
Land, Labor, Capital, and entrepreneurship
The positive relationship between price and quantity supplied is known as
Law of supply
What does WTO stand for?
World Trade Organization
Monopolistic competition has _____ firms
Many
A period of increasing GDP is known as a ______ period
Expansionary
A diagram representing the combination of goods/services an economy can produce at full capacity.
Production possibilities curve
The inverse relationship between price and quantity demanded is known as
Law of demand
What term do we use to describe an economic system that functions across the entire Earth?
Globalization
A government-regulation monopoly providing essential services is a what?
Natural Monopoly
Recession
What are the 3 basic types of economic systems?
Traditional, Command, Market
An increase in supply or demand shift the line which direction?
To the right
What is the IMF?
International Monetary Fund
Corporate profits are subject to ____ taxation
Double
Peak
According to the circular flow model, businesses purchase labor in the ______
Factor Market
A new technology is introduced making production less expensive, what happens to the supply curve?
Shifts to the right
What is free trade?
When trade occurs without any barriers
Which part of the business cycle might require government intervention?
The trough
According to the Circular Flow Model, households purchase goods/services in the _____
Product Market
What do we call the point where the supply and demand curves meet?
The equilibrium point
Meant to promote domestic production, this is the name for a tax that is placed on imported goods
The Sherman Antitrust Act made it illegal to do what?
Enter into a contract that restricts trade.
Recovery period