Macroeconomics
Consumption+Business Investments+Government Expenditures+Net Exports
What is the method for calculating Gross Domestic Product (GDP)?
A rise in the level of prices of goods and services
What is inflation?
Setting the limit on the amount of a good that can be imported in, placing a tax on imports, government funding for certain domestic industry to help them compete with foreign markets, banning trade with a certain nation are all examples
What is trade barriers?
Taxes on imports
What is tariffs?
People tend to respond to these in rational and predictable ways. They motivate people into a certain behavior. Ex. Points for playing Jeopardy today
What are incentives?
This is a type of unemployment that occurs primarily when are in a recession (also known as contraction).
What is cyclical unemployment?
Used to measure economic growth
What is Gross Domestic Product (GDP)?
When a country can produce a good at a lower opportunity cost than another country
What is comparative advantage?
A sum of money given by the government to a business or industry so that the price of a commodity or service can remain low or competitive.
What is a subsidy?
This type of investment has the highest risk but offers the greatest potential for high returns on money.
What are stocks?
This is when the Federal Reserve raises the discount rate, increases the reserve requirement or sells government bonds in an open market
What is tools to help slow down the economy?
What is the Federal Reserve?
A country that exports more than it imports is said to have this
What is a favorable balance of trade?
Trade agreement between the U.S., Canada and Mexico
What is NAFTA?
Income tax is the best example of this, a tax that gets higher as your income gets higher
What is progressive tax?
Two ways that the government can expand the economy
What is decrease taxes or increase government spending?
What is the business cycle?
The EU, NAFTA and ASEAN are examples
What are trade blocs?
If the U.S. dollar depreciates, this group will benefit
Who are foreign investors, foreigners traveling to the U.S., U.S. exporters (sort of)?
People that choose a lower monthly premium on their insurance policies have to pay this
What is higher deductibles?
Betty works as a seamstress. She is currently unemployed due to new machinery in the clothing industry.
What is structural unemployment?
The famous economist who believed that the economy works best with little government intervention.
Who is Adam Smith?
This is a group that likely benefits from the appreciation of the U.S. dollar
What are U.S. citizens traveling abroad/U.S. citizens importing foreign products?
Name all five trade barriers.
Amount of debt or bill payment history would be factors that would effect your....
What is credit worthiness?