The US government is participating in this when it buys airplanes from an American company.
What is product market?
100
The immediate result when the federal government spends more money than it collects in taxes.
What is a federal budget deficit?
100
A nation has this when the value of its exports is greater than the value of its imports.
What is a trade surplus?
100
This is the cost you pay for insurance coverage.
What is a premium?
200
Jenna decides to spend $10 to buy a book instead of buying a $10 pair of sandals. The satisfaction she misses by not owning new sandals is referred to as this.
What is opportunity cost?
200
This states that the higher the price, the more producers will supply.
What is the law of supply?
200
The consumer price index is a measure of this.
What is inflation?
200
This is known as the ability of one nation to make something at a lower opportunity cost than another nation can make it.
What is comparative advantage?
200
This is usually regarded as a regressive tax because it has a more serious impact on the poor than on the rich.
What is sales tax?
300
In this economic system, the government controls all economic resources and answers all economic questions.
What is command economy?
300
Minimum wage is an example of this.
What is price floor?
300
The effect on the economy when the Federal Reserve sells government securities, or bonds, on the open market.
What is decreases the money supply?
300
This is known as a tax on imported goods.
What is a tariff?
300
When this occurs, workers who have a cost of living adjustment in their contract benefit.
What is inflation?
400
The way most public goods and services are paid for in the United States.
What is the government collects taxes from individuals and businesses?
400
When supply and demand are equal that point is referred to as this.
What is equilibrium or market clearing price?
400
The fiscal policy the government would most likely use if GDP is decreasing and the unemployment rate is rising.
What is decrease taxes?
400
This was established to reduce trade barriers between the U.S., Canada, and Mexico.
What is NAFTA?
400
The US personal income tax is considered this type of tax because the rich pay a higher percentage of their income in taxes than the poor do.
What is a progressive tax?
500
A supply curve will shift in this direction if a cheaper, synthetic pine becomes available on the market.
What is to the right?
500
This type of business organization has the advantage of specialization, but the disadvantage of unlimited liability.
What is a partnership?
500
The difference between monetary policy and fiscal policy.
What is monetary policy involves the money supply, while fiscal policy involves government taxing and spending decisions.
500
These are five types of trade barriers used by nations to limit imports.
What are tariffs, quotas, standards, subsidies, and embargoes?
500
Buying stocks, purchasing bonds, using profits to buy better machinary, and using part of one's income to take a training course are all forms of this.