Microeconomics
What is utility?
The economic term for the satisfaction or benefit derived from consuming a good or service.
What is Gross Domestic Product (GDP)?
The total value of all goods and services produced within a country in a year.
What is a free market economy?
An economic system where supply and demand determine prices with little government intervention.
What is opportunity cost? With an example
The cost of the next best alternative foregone when making a decision
What is inflation?
The economic term for sustained increases in the general price level over time.
Who is David Ricardo?
The economist known for the theory of comparative advantage in international trade
What is the law of diminishing marginal utility?
The law stating that as more of a good is consumed, the additional satisfaction decreases.
What is the Phillips Curve?
The curve that shows the inverse relationship between inflation and unemployment rates.
What is the World Trade Organization (WTO)?
The international organization that administers the TRIPS agreement on intellectual property rights.
What is an oligopoly?
A market structure with only a few large firms dominating the industry
What is structural unemployment?
The type of unemployment caused by technological changes or mismatches in skills.
What is globalization?
This term describes the increasing economic interdependence among nations through trade, investment, and technology transfer
What is unit elasticity?
The type of elasticity where a percentage change in price leads to an equivalent percentage change in quantity demanded.
What is crowding out?
The phenomenon where government borrowing leads to reduced private investment.
What is comparative advantage?
The economic concept where countries specialize in producing goods for which they have a lower opportunity cost than others.