Intro Economics
Supply and Demand
1 Foot (12 inch) Economy
Fiscal and Monetary Policy
Foreign Exchange
100
An economy using it's resources in the most efficient way to produce goods is represented by this
What is PPF (production Possibility Frontier)
100
A lowering of price will cause this kind of shift in the demand curve
What is rightward
100
Y=C+I+G+NX. This variable represents both GDP and National income
What is Y
100
The government budget is in a deficit when this spending is higher than this.
what is government spending and revenues
100
When foreign investments begin flowing to the US. the value of the dollar will do this
What is Increase
200
In Economy that uses specialization makes this many products with it's limited resources
What is 1 exceptionally good Product
200
Y=C+I+G+NX. this variable represents the difference spent on domestic goods by foreigners and spending on foreign goods by domestic residents
What is NX
200
Monetary policy involves smoothing out of business cycles through the control of these 2factors
What are money supply and interest rates
200
Currency that is not easy to exchange for other currency
What is Soft currency
300
A country able to produce better goods with the same inputs is said to have this
What is Absolute Advantage
300
This type of good is represented as always being bought with another type of good
What is a complimentary good
300
Y=C+I+G+NX. G is used to represent the governments spending on these 2 things
what are goods and services
300
A _______ in money supply will cause a ______ in interest rates
What is decrease and increase
300
These factors affect the interest rates of traded currency
what are Demand, risk, and inflation
400
When people choose one item of another for the opportunity cost it is because they believe the one item contains this
What is greater value
400
If the price of an item increases consumers are more likely to buy one of these instead
what is a supplementary good
400
Y=C+I+G+NX. I shows the money spent on capital equipment, inventories and structures. or more specifically this
What are investments
400
Fiscal policy is limited by lags and the fact that most government spending is this
What is mandatory
400
How powerful a countries currency is, is based on _______
What is Balance of payments
500
Opportunity is decided by this factor (only need 1)
What is Wants, desires, time, or resources
500
If suppliers make more product than what is bought it results in one of these
What is a surplus
500
Y=C+I+G+NX. C stands for consumer spending which is money spent on on these 2 types of goods
What are durable and non durable
500
When the government is worried about the rate of unemployment, the proper fiscal policy reaction is to ____ spending or _____ taxes
What is raise and decrease
500
If a country is going through a recession a wise thing to do with your currency is this
What is trade for another currency
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