Adam Smith used this term in his book "Wealth of Nations" to describe an economic system in which the markets are unregulated and the people are able to do what ever they want economically without government intervention.
What is Laissez-faire?
100
An economic concept that expresses the amount of a specific good or service that is available to consumers.
What is Supply?
100
The monetary values of all the finished goods & services within a country's borders in a specific time period.
What is GDP (Gross Domestic Product)?
100
This economic theory relies on spending and aggregate demand to define the economic marketplace.
What is Keynesian economics?
100
The trading of currencies and banks deposits is what makes this up.
What is the foreign exchange market?
200
The benefits you could have received from choosing another alternative.
What is Opportunity Cost?
200
Quantities respond in the same direction as price changes.
What is the law of supply?
200
All of private and public consumption, investment and government spending, and the value of exports, minus the value of imports.
What is included in GDP?
200
Exchange Rates
Distribution of Income
Expectations
Foreign Income
Monetary & Fiscal Policies
What are aggregate demand shifters?
200
A decrease in a countries currency.
What is depreciation?
300
A person has this while producing something if he can produce it at the cheapest cost.
Comparative Advantage.
300
1. Amount of other sellers.
2. Technology.
3.Resource Prices.
4.Taxes & Subsidies.
5.Expectations of producers.
6.Prices of other goods the company could produce.
What are supply shifters?
300
Real values are adjusted for inflation, while nominal values are not.
What is the difference between real GDP and nominal GDP?
300
Aggregate demand is to the left of its normal position.
What is an AS/AD graph with an economy in a recession?
400
An economy that's decisions regarding investments, distributions, and production are based on supply and demand & price of services and goods are decided in a free price system.
What is a Market Economy
400
An economic theory that the perceived value of a good to a consumer declines after each addition unit consumed.
What is Diminishing Marginal Utility?
400
C+I+G+(X-M) or private consumption + gross investment+government spending+(exports-imports)
What is the calculation used for GDP?
400
Increasing government spending and reducing taxes.
What is expansionary fiscal policy?
400
A foreign exchange graph with the supply curve to the right.
Depreciation
500
The economic problem that arises when people have unlimited wants but resources are limited.
What is scarcity?
500
The existence of these in supply will result in a lack of balance between supply & demand.
What is Shortages & Surpluses.
500
Takes into account the average GDP per person in the economy.
What is Real GDP per capita?
500
If the money supply grows too fast, the rate of inflation will increase. If the growth of the money supply is slowed too much then economic growth may slow as well. Often targeting an inflation rate or interest rate to ensure price stability and trust in currency.
What is monetary policy?
500
A foreign exchange graph with the demand curve to the right.