Supply and Demand
On a supply and demand graph, what does equilibrium mean?
quantity supplied is equal to quantity demanded
Which country has the highest GDP in the world?
United States
Which market structure has many sellers each selling identical products with easy entry and exit to the industry?
Perfect competition
An increase in the general level of prices of goods and services is called:
Inflation
What is it called when a country spends more money on imports in one year than it earns in exports
trade deficit
What is the name of a federal program that provides income to those over a certain age or based on another requirement such as disability?
Social Security
A measure of stock market performance based on 30 representative stocks is called the:
Dow Jones Industrial Average
What occurs when the demand curve shifts to the right?
price increases and quantity increases
What are countries with relatively low levels of material well-being
Less developed countries
How much competition exists between firms in a monopoly?
None because it is the only firm
What type of unemployment is caused due to a downturn in the business cycle?
cyclical unemployment
Which group has a goal of protecting domestic producers from foreign competition with the use of tariffs, quotas, and other trade barriers
protectionists
What is the name of a share of ownership of a corporation?
Stock
Which decade did a depression last occur in the United States?
1930s
What occurs when the supply curve shifts to the left?
price increases and quantity decreases
Areas of the world with many of the lowest GDP per capita include:
Much of Africa, Latin America, and Southeast Asia
What is an industry where there are a few leading firms in competition with each other?
Oligopoly
What type of unemployment is caused by people who are simply between jobs?
frictional unemployment
Which group has a goal of fewer or no trade restrictions
free traders
A federal healthcare program for senior citizens regardless of income is called:
Medicare
What is the name for a harm or inconvenience on those who don’t pay for an item?
negative externalities
On a supply and demand graph, where would a shortage occur?
a price set that is too low and quantity demanded is greater than quantity supplied
What is the name of a group of nations with mostly a common currency, the Euro, that has no barriers for flow of workers, financial capital, or goods and services?
European Union
If the industry for pants has a lot of sellers each with similar products (not identical) with sellers who each have some control over prices, then the pants industry is considered a(n)
Monopolistic competition
What is the percentage of people not working, but are at least 16 years old and are actively looking for work?
unemployment rate
What is a tax placed on an imported product
a tariff
Consumer
Business/investment
Government
3 of the 4 components of GDP
What is the name of a country being able to produce an item at a lower opportunity cost than of another country?
comparative advantage
On a supply and demand graph, where would a surplus occur?
a price set that is too high and quantity supplied is greater than quantity demanded
Name the international organization that administers trade agreements, settles trade disputes, and organizes trade negotiations
World Trade Organization
A fall in real GDP for at least two consecutive quarters (three months each) with an increase in unemployment is a(n):
recession
What must be true for someone who is at least 16 years old who either have a job or are actively looking for a job if they don’t have one?
The person is in the labor force
What is a system that relies on supply and demand to determine the value of one currency vs. another?
flexible exchange rate
Which type of business structures has the U.S. government sought to regulate or break up since the passage of the Clayton Act and Sherman Act?
monopoly
The definition of a quota is a:
a limit on the amount of an imported good allowed into the country
What is a price floor and what does it cause?
a minimum price charged for a product, which usually creates a surplus.
What is the difference between the International Monetary Fund and the World Bank?
The International Monetary Fund assists with exchange rates and oversees international payments to help economic growth, while the World Bank offers loans and provides assistance to less developed countries
What is a period of economic growth measured by a rise in real GDP?
expansion
What is the name of the most used price index in the United States, which shows prices of a representative sample of frequently used consumer items?
Consumer Price Index
What renegotiated trade deal between the United States, Mexico, and Canada was ratified in 2020?
USMCA
Generally, what is the relationship between real GDP per capita and the standard of living?
the higher the real GDP per capita, the higher the standard of living
What is it called when a country earns more money on exports in one year than it spends on imports
A trade surplus