Economic Basics
Limited resources and unlimited wants create this.
What is scarcity?
How much people want to buy.
What is demand?
Money collected by the government.
What are taxes?
Cost of borrowing money.
What is interest?
Buying and selling between countries.
What is international trade?
The next best choice you give up.
What is opportunity cost?
How much producers want to sell.
What is supply?
Tax taken from most paychecks.
What is income tax?
The central bank of the United States.
What is the Federal Reserve?
Tax on imported goods.
What is a tariff?
Land, labor, capital, and entrepreneurship are called this.
What are factors of production?
Where supply and demand meet.
What is equilibrium?
Spending more than the government earns.
What is a budget deficit?
Lower interest rates usually do what to borrowing?
What is increase borrowing?
Value of one currency compared to another.
What is an exchange rate?
A graph showing production choices.
What is a Production Possibilities Curve (PPC)?
Demand goes up, supply stays the same. What happens to price?
What is price increases?
Government spending and taxes are part of this policy.
What is fiscal policy?
Rising prices over time.
What is inflation?
Producing something at a lower opportunity cost.
What is comparative advantage?
What causes a PPC to shift outward?
What is economic growth?
Gasoline is usually what type of demand?
What is stable demand?
Economist known for government spending during recessions.
Who is John Maynard Keynes?
What can the Fed do to fight inflation?
What is raise interest rates?
Why do countries trade?
What is to get goods more efficiently?