Micro & Macro
Name 3 Concepts associated with Microeconomics
Supply & demand, price, competition, consumer behavior, etc
Define Fiscal Policy
Fiscal policy is the use of government spending and taxation to influence a country’s overall economic activity.
Define Revenue
The total money a business or government brings in from sales or activities, before subtracting costs & expenses.
Name 3 Concepts associated with Macroeconomics
National income, GDP, inflation, unemployment, exchange rates, economic growth, etc
Define Monetary Policy
Monetary policy is the way a country’s central bank (like the Federal Reserve in the U.S.) manages the supply of money and interest rates to influence the economy.
Define Factor Payments
Payments for the use of expenses of production like land, labor, and capital.
What are the 2 most important measures of Macroeconomics?
GDP & CPI
Give an example of Fiscal Policy then Monetary Policy
Gov. Spending - Military, schools, libraires
Printing money, changing interest rates
Business organizations that produces goods or services in order to sell them for profit are called _______
Firms
What causes inflation?
Too much money in circulation
Using Fiscal Policy, the government can enter two periods of spending or saving. What is that called?
Expansionary or Contractionary policy
Entrepreneur vs Franchisee
Starting and running a business by taking risks and using ideas to meet market needs.
Buys the right to use a larger company’s brand, products, and business model to operate their own business.
What do GDP & CPI stand for? What do they track?
Gross Domestic Product & Consumer Price index
Name 3 ways subsidies can be received
Direct payments, tax breaks, lower interest rates
Subsidies are typically only given if one of two conditions is met:
Essential Economic Value or Social Goals
What is the difference between a Recession & Depression?
A recession = a short-term, economic downturn.
A depression = a long-term, very severe economic downturn.
Name 3 examples of prominent subsidies given by the government
Airline bailout, Agriculture payments, GM bailout, Electric Car mandates, Education (scholarships, grants)
Keynesian Economics
Keynesian Economics is an economic theory developed by John Maynard Keynes during the Great Depression (1930s). It emphasizes the role of government in managing the economy.