This represents various combinations of goods that an economy can produce when all resources are fully employed
PPF curve
100
The point where supply meets demand, so no shortage or surplus exists
equilibrium
100
the gift tax is used to prevent people from avoiding the
estate tax
100
Slow economic growth coupled with inflation
stagflation
100
a country's ability to produce more of a given product than another country
comparative advantage
200
A feature of capitalism that allows people to own and control their own possessions
private property rights
200
A price ceiling ___________ the supply of a good
decreases
200
earlier and larger depreciation charges tat allowed firms to reduce federal income tax payments
accelerated depreciation
200
a decrease in general prices
deflation
200
Goods one country buys from another
imports
300
An economy in which consumers and privately owned businesses make the majority of the WHAT, HOW, FOR WHOM decisions
free enterprise
300
situation where demand is greater than supply
shortage
300
much like a sales tax, but added at each state of production
VAT TAX
300
When the costs of production go up so firms raise their prices
cost push
300
THIS set import tariffs so high that prices rose nearly 70% and world trade nearly ceased
Smoot Tariff
400
The cost of the next best alternative when a choice is made
opportunity cost
400
when the gov't (instead of prices) decides who gets what,
rationing
400
This tax can result in companies hiring fewer workers or investing less in expanding their firms. It also causes companies to move oversees to avoid THIS tax
corporate income tax
400
milton friedman believed THIS was the main cause of inflation
excessive monetary growth
400
The most frequent argument used to support trade barriers is that they protect _______ jobs
domestic
500
manufactured good that is used to produce other goods
capital good
500
minimum wage laws are an example of a price_-____
floor
500
Medicare and social security are
FICA
500
THIS institution controls how much money is in the economy by raising and lowering interest rates
The Federal Reserve Bank
500
These tariffs raise money for the gov't while not prohibiting imports