Basics + Supply/Demand
This term describes the limited resources available to satisfy unlimited wants.
What is scarcity?
This is the central banking system of the United States.
What is the FED?
A business structure where owners have limited liability and shares can be sold to the public is called this.
What is a corporation?
This is the total value of all final goods and services produced in a country in one year.
What is Gross Domestic Product?
This is the most well-known cryptocurrency.
What is bitcoin?
If the price of a good increases, producers will generally offer more of it for sale according to this law.
What is the law of supply?
One of the Fed’s main goals is to promote this economic condition of stable prices.
What is stable inflation?
These are costs that do not change with the level of output in the short run, such as rent or machinery leases.
What are fixed costs?
This type of unemployment occurs when workers are between jobs or entering the workforce.
What is frictional unemployment?
Cryptocurrencies are typically recorded and verified using this decentralized digital ledger technology.
What is blockchain?
This occurs when the quantity supplied equals the quantity demanded at a specific price.
What is market equilibrium?
The Fed primarily uses this tool to influence short-term interest rates and the money supply.
What is the federal funds rate or open market operations?
This is money left after taxes and deductions that you can spend or save.
What is disposable or take home income?
When the overall price level in the economy is rising, this economic condition is occurring.
What is inflation?
This type of advantage exists when one country can produce more of a good using the same amount of resources than another country.
What is absolute advantage?
An increase in consumer income for a normal good would cause this shift in the demand curve.
What is a rightward shift?
During a recession, the Fed would most likely do this to monetary policy to stimulate the economy.
What is lower interest rates? (Increase money supply)
Paying more than the minimum on credit cards primarily helps avoid this long-term cost.
What is compound interest?
This phase of the business cycle is marked by rising GDP, falling unemployment, and increasing consumer spending.
What is expansion?
This type of advantage is based on having the lower opportunity cost in producing a good.
What is comparative advantage?
If a government sets a price floor above equilibrium (like a minimum wage), this market imbalance typically results.
What is a surplus?
If there is too much money in the economy how might the Fed react?
What reduce money supply and increase saving rates?
This investment strategy spreads risk by owning a mix of stocks, bonds, and other assets.
What is diversification?
Cost-push inflation is often caused by a sudden increase in these.
What are production costs?
This term describes the process of verifying crypto transactions and adding them to the blockchain, often rewarded with new coins.
What is mining?