People have unlimited wants but resources are limited
What is scarcity
100
the rule that, holding everything else constant, when the price of a product falls, the quantity demanded of the product will increase, and when the price of a product rises, the quantity demand of the product will increase
What is Law of Demand
100
directly related to swings in the business cycles
What is cylical yunemployment
100
Medium of exchange, store of value, unit of account
What is the three functions of money
100
the money supply to influence interest rates.
What is Monetary Policy
200
the next best alternative use for a resource when one choice is made rather than another
What is opportunity cost
200
the rule that, holding everything else constant, increases in price cause increases in the quantity supplied, and decreases in price cause decreases in the quantity supplied
What is Law of Supply
200
caused by a fundamental change in the economy that reduces the demand for some workers
What is structural unemployment
200
Something that represents money; exchanged for commodity.
What is representative money
200
policy dealing with spending and taxation.
What is Fiscal Policy
300
Ideal market structure in which buyers and sellers each compete directly and fully under the laws of supply and demand
What is pure competition
300
A regulation which requires a bank to keep a certain percentage of each dollar deposited in the bank in its reserve account at the Fed or in its vault (as vault cash)
What is Reserve Requirement
300
two consecutive quarters of negative GDP growth. Leads to unemployment rate over 5% and a rate of inflation less then 2%
What is recession
300
changes in the supply of money affects the general level of prices