The ability of a party(an individual, or firm, or country) to produce more of a good product or service than competitors,using the same amount of resources.
What is absolute advantage?
100
Make (something necedad or wanted) a available to someone; provide.
What is supply?
100
The total value of goods produced and services provided in a country during one year.
What is gross domestic product?
100
All the goods and services (real GDP) that consumers are willing and able to purchase at different price levels.
What is aggregate demand?
100
Is not reflected by the nominal exchange rate.
What is real exchange rate?
200
The cost of an alternative that must be forgone in order to pursue a certain action.
What is opportunity cost?
200
A state in which opposing forces or influences are balanced
What is equilibrium?
200
A measure of the value of economic output adjusted for price changes.
What is Real GDP?
200
1) Quantity of resources
2) Quality of resources
3) Technology
What is shifters of Long-Run Aggregate Supply?
200
International currencies are traded here. It is an OTC
What is foreign exchange markets?
300
A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.
What is Scarcity?
300
Number of sellers,technology, resource prices, taxes and subsidies, expectations of producers, prices of other goods
What is Supply shifters?
300
A general increase in prices and fall in the purchasing value of money.
What is inflation?
300
1) changes in consumer spending 2) changes in investments 3) changes in government spending 4) changes in net-exports
What is AD shifters?
300
Increase in the value of a country's currency compared to the currencies of other countries.
What is appreciation?
400
An economic theory about the potential gains from trade for individuals,firms, or nations that arise from differences in their factor endowments or technological progress.
What is Comparative Advantage?
400
A fundamental principle of economic theory which states that, all else equal, an increase in price results in an increase in quantity supplied.
What is law of supply?
400
Structural,frictional, and cyclical.
What is types of unemployment?
400
Wages and resources prices will NOT increase as price levels increase.
What is short-run aggregate supply?
400
if two countries produce an identical good, profit opportunities should ensure that its price is the same in both countries no matter which country produces the good.
What is law of one price?
500
Prices for goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy.
What is Market Econmy and Capitalism?
500
Sometimes the market is not equilibrium that is quantity supplied doesn't equal quantity demanded.
What is shortages and surpluses?
500
A combination of frictional and structural unemployment that persists in an efficient, expanding economy when labor and resource markets are in equilibrium.
What is natural rate of unemployment?
500
-As price level increases (inflation), real GDP demand falls.
-As price level decreases (deflation), real GDP demanded increases.
-Price level does NOT shift AD curve. Only slides point on the curve.
What is law of Aggregate demand?
500
Currencies or bank deposits are exchanged immediately (subject to a 2 day settlement period)