Economic Decision Making
If you chose between a hotdog and pasta at lunch time, the one you do not choose is called THIS.
What is the opportunity cost?
The three basic economic questions are what to produce, how to produce it, and.....
What is "for whom"?
Economies without money use THIS inefficient form of exchange, which requires consumers to trade their goods for someone else's goods.
What is barter?
When the money supply increases too quickly, THIS may result.
What is inflation?
A debit card uses money from your own bank account while a credit card is THIS
What is a loan?
Every decision involves trade-offs because of this economic concept.
What is scarcity?
THIS economic system is characterized by custom, agriculture, and resistance to change.
What is a traditional economy?
Paper bills and coins are a convenient form of money because they are divisible, interchangeable, durable, and THIS, which means easy to carry around.
What is portable?
This economic indicator measures the final sale price of all goods/services produced within a country.
What is Gross Domestic Product?
Unlike a savings account, investing money involves THIS
What is risk?
Figuring out what you will give up and gain by getting an extra hour of sleep is an example of THIS.
What is "thinking at the margin"?
In THIS economic system, the laws of supply and demand determine what is produced. Prices are also determined by the laws of supply and demand in this economic system.
What is a market economy?
Banks can increase the money supply or "create" money by doing THIS:
What is lend out money?
If price level decreases in an economy THIS will increase.
What is aggregate demand?
A factory building, the desks in a school, and an oven in a pizza shop are all examples of THIS type of resource...
What is physical capital?
Efficiency is the benefit of THIS economic concept, which means "pursuing a particular line or work".
What is specialization?
In a recession or period of slow growth, the Federal Reserve can encourage banks to lend out money and consumers to borrow money by doing THIS?
What is lower interest rates?
When the federal government wants to grow the economy and create jobs, it may lower taxes and increase government spending, also know as THIS type of fiscal policy.
What is expansionary fiscal policy?
A circular flow chart of the economy demonstrates THIS economic concept.
What is interdependence?
Goods/services that are shared by everyone but provided for by the government are called THIS.
What are public goods/services?
The purpose of THIS institution is to give consumers confidence in the banking system and make sure they don't lose their money if banks fail.
What is the FDIC?
When there is no cyclical unemployment, the economy is said to have reached THIS. (Hint: unemployment rate will be between 4-6%, NOT zero)
What is FULL employment?