Economic Basics
This type of resource includes factories and tools used to make goods.
What is a capital resource?
This happens when demand decreases but supply remains the same.
What is a decrease in equilibrium price?
The Federal Reserve helps manage the U.S. economy by adjusting this.
What is the supply of money or monetary policy?
The formula for GDP includes consumption, investment, government spending, and these two trade-related factors.
What are exports and imports?
This is NOT considered a financial resource: stocks, gold, bonds, or fiat money?
What is gold?
This economic concept explains why people must make choices about what to buy.
What is scarcity?
When a country’s economy is running smoothly, the market for coffee is in this state.
What is equilibrium?
In this type of economic system, private businesses operate with little government control.
What is capitalism or a free market economy?
If more people buy goods and services, GDP will do this.
What is increase?
This type of money is not backed by a physical commodity like gold but is given value by government decree.
What is fiat money?
This is the total value of all goods and services produced within a country’s borders.
What is Gross Domestic Product or GDP?
In a market economy, prices are set based on these two factors.
What are supply and demand?
When the Federal Reserve buys bonds, it injects more money into the economy and does this to interest rates.
What is lowers them?
This is an example of an ‘injection’ into the circular flow of the economy.
What is income from exports?
When the government prints too much fiat money, this economic problem occurs, causing prices to rise.
What is inflation?
A paycheck from work is an example of this.
What is income?
If both supply and demand increase at the same time, this will definitely increase.
What is the equilibrium quantity?
This economist described market forces as an ‘invisible hand’ that guides the economy.
Who is Adam Smith?
Higher household savings would have this effect on economic activity.
What is a decrease?
This financial plan helps individuals track income and expenses for better decision-making.
What is a budget?
If a person decides to buy a video game instead of saving for a new bike, the bike represents this economic concept.
What is opportunity cost?
A rightward shift in the supply curve means this happens to supply and price.
What is supply increases and price decreases?
This economic philosopher criticized capitalism in his book Das Kapital.
Who is Karl Marx?
The GDP of a country is calculated as consumption + investment + government spending + exports minus this.
What are imports?
Stocks and bonds are examples of this type of resource used for investment and financial growth.
What are financial resources?