Inflation and Recession
What is inflation?
Rise in prices over time.
What does HDI stand for?
Human Development Index
What four factors do we look at to measure if there is a recession?
Employment, production, income, and sales
Someone who believes in free trade believes that _______________________
Trade benefits everyone as it allows for specialization and therefore trade barriers and restrictions like tariffs and quotas should be eliminated.
Which type of tax is a tax on the items you buy at a store?
Sales
How does demand play into inflation?
When demand goes up for a particular good or service that increases the price.
What is the purpose of a primary job?
Extracting raw materials from the Earth.
What is a multinational corporation?
One that operates in 2 or more countries.
The U.S has had a trade agreement with what 2 other countries since 2019/1994?
Canada and Mexico
Why do governments tax?
To raise money to fund government services.
How does supply play into inflation?
When there is a shortage of a good, the price goes up.
Which type of society is the most advanced in terms of technology?
Post-industrial
What type of recession is deeper and more prolonged?
Depression
What is Brexit?
UK leaving the European Union in 2020.
What is debt?
When a person or entity is spending more money than they are bringing in.
What measures inflation?
Consumer Price Index
What types of jobs are service-based?
Tertiary
How does becoming a multinational company bring down the cost of a good?
Shipping costs go down.
What is an import?
Something that a country gets shipped from somewhere else overseas.
How much debt is the U.S Government in?
Trillions of dollars
How has the Covid-19 Pandemic played a role in inflation?
Consumer demand for products have gone up, but lockdown policies in countries have created a shortage as factories have shut down.
Give me an example of a developing country.
At teacher's discretion
What is outsourcing?
Jobs are shifted overseas causing many people to lose their jobs.
Why does trade benefit everyone?
Countries can produce more of what they're good at and can get other goods shipped that they still need or want.
Which type of tax is a tax on the money one makes from selling assets like a home or stocks?
Capital Gains