Review day 1
this is what you would call a point ABOVE the PPC curve
unattainable/ impossible
this is the gap between unlimited desires and limited resources
scarcity
this is the measurement of a person's ability to repay
credit score
this is the market characterized by a few large firms
oligopoly
this economy is a system that relies on customs, history, and time-honored beliefs.
traditional economy
this is the general increase in prices
inflation
this is the relationship between demand and price
opposite (price increases, demand decreases/ visa versa)
this is the goal of fiscal policy
to keep the economy on track
this is an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.
market economy
this is the expression of the amount of goods and services that one unit of money can buy
purchasing power
this is the term that means consumer demands do not change when price does
inelastic
this is what the government should do to decrease unemployment
increase spending and cut taxes
this is a characteristic of a traditional economy
roles are known to everyone
close communities
usually involved agriculture or fishing/hunting
lower income
these are the six factors that create a change in demand
Consumer Income Consumer Tastes
Substitutes Complements
Expectations Number of consumers
This is the meaning of "make your money work for you"
Instead of keeping money in a bank invest it
this is the economic phase indicated by increasing unemployment and decreasing inflation
recession
the law that states for every additional unit of production of one good, you lose >1 unit of another good.
increasing opportunity cost
this is how you determine real interest rates
account for (take out) inflation
Flood (if in a high flood area)
auto (if you own a car)
health (no longer in 2019)
Insurances required by the government
this is the trade agreement created with the US and its neighbors that was ended by President Trump
NAFTA