GDP
GDP stands for what:
Gross Domestic Product
What was our original trading system?
The Barter System
What is Globalization?
The process by which people their ideas and their activities in different parts of the world become interconnected
What type of economy is the United States?
A mixed economy
A economic belief that government intervention was necessary for a productive economy
Keynesian economics
What is the GDP that measures for inflation?
Real GDP
When there is not enough resources to satisfy the desires of all people, that is called:
Scarcity
The term for when a country's currency increases in value relative to another country's currency
Appreciation
What are the 4 factors of production?
Land, Labor, Capital, and Entrepreneurship
A theory that advocates for supply and demand to be the main determinants of the economy?
Neoclassical Economics
You just bought a brand new shed! What would be included in its GDP? A. The price of wood, nails, etc. that are used to make the shed B. Just the price of the completed shed
B. Just the price of the completed shed
This term measures the change over time in the prices paid by consumers for a representative basket of goods and services. (The tool that measures inflation)
Consumer Price Index (CPI)
The nuclear bomb being created by many countries after WW2 is an example of what type of globalization?
Military globalization
This type of economic system bases its decisions on customs and tradition
Traditional Economy
What economic model best represents the resource and product markets?
The Circular Flow model
What are the components of the expenditure model?
C = consumer spending
I = investment spending
G = government purchases
X = exports
M = imports
if Japan and Italy can both produce automobiles, but Italy can produce sports cars of a higher quality and at a faster rate with greater profit then who has the absolute advantage?
Italy has the Absolute Advantage
What are the 5 aspects of globalization?
Economic, Technological, Cultural, Political, Military
The factors of production are owned by who in a command economy
The government
When the federal gov't. can influence the economy by its spending, taxing, and borrowing of local, state, and federal gov't. is a description of what type of policy?
Fiscal Policy
If the Real GDP is $100 and the number of people in a country is 20, then the Real GDP per capita of that country is:
Real GDP per capita is 5
A health care worker who loses their job because of layoffs during a recession is an example of what type of unemployment?
Vincent has $60,000 CAD (Canadian dollars) that he wants to convert into USD (United States dollars). How much money in USD will he receive? (1 USD = 1.31 CAD)
45,801 Euros
What is an example of a disadvantage that is associated with a free market economy?
Does not provide basic needs for all citizens
Lots of risk & uncertainty
Struggles to provide services that aren't profitable (Roads, military, water, etc...)
Can easily fail if certain conditions aren't met
Apple hires 300 new employees. Are they in the product or resource market?
The Resource Market