Branch of knowledge concerned with the production, consumption and transfer of wealth
What is economics?
100
Economic theory, as the price of a service or good increases so does the quantity of supplies or goods
What is the law of supply?
100
Consumption, investment, government spending, net exports
What are the 4 components of GDP?
100
Active government involvement in solving economic problems that always works
What is keynesian economics?
100
The value of one country's currency in terms of another currency
What is foreign exchange rate?
200
The economic problem in which there is an unlimited amount of human wants in a world of limited resources
What is scarcity?
200
The total amount of a good or service that can be provided
What is supply?
200
A final estimated value of the total worth of a countrys production within its boundary by its nationals and foreigners calculated over the course of one year
What is Gross Domestic Product (GDP)?
200
Market will function its best without government interference
What is classical economics?
200
Bringing goods or services into a country
What is imports?
300
A Scottish 18th-century philosopher and free-market economist. He is famous for his ideas about the efficiency of the division of labor and the societal benefits of individuals' pursuit of their own self-interest. Wrote the wealth of nations.
Who is Adam Smith?
300
Number of sellers, technology, resource prices, taxes and subsidies, expectations of producers, prices of other goods
What are the supply shifters?
300
An estimated value of the total worth of production and services by citizens of a country on its land or on foreign land calculated over the course of one year
What is Gross National Product (GNP)?
300
The interest rate that is charged when banks borrow money from other banks
What is the federal funds rate?
300
Sending goods or services to another country for sale
What is exports?
400
Includes land, labor, capital, and entrepreneurship
What are the factors of production?
400
A consumers willingness to pay a price for a good or service
What is demand?
400
GDP figure that has been adjusted for inflation v. GDP figure that has been adjusted for inflation
What is Real GDP v Nominal GDP?
400
Federal Reserve holds about 12% of money to make sure the bank stays stable
What is required reserve?
400
Inflation, tastes and preferences, interest rates, and income (GDP) levels of an economy
What are the shifters of the foreign exchange graph?
500
Producing a good at a lower relative opportunity cost than a competitor
What is comparative advantage?
500
Economic theory, states as the price of a good or service increases, then the demand for the good or service will decrease
What is the law of demand?
500
A rise in the price of goods because of an increase in the volume of money (loss of value of currency)
What is inflation?
500
Interest rate that is charged when borrowing money from Federal Reserve
What is the discount rate?
500
Made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail foreign exchange brokers and investors