UNIT 1
Market Size, Expectations, Regulations Taxes, Input Costs, Technology
Peak, Trough, Expansionary, Contractionary
What are the parts of the business cycle?
What is the national debt?
Textile Industry
Trade off
What is it called when you lose the quality or value of one thing for another
All things equal
What is ceteris paribus?
The rate of increase in prices over a given period of time
What is inflation?
Stimulate economic growth and promote the well being of citizens
What is the purpose of government spending?
The ability of a specific country to produce a good at a lower cost per unit.
What is an absolute advantage?
Opportunity Cost
Steak, designer, clothes, new car
What are normal goods?
The stock market, house prices, retail sales, interest rates.
A good that can be used by everyone and cannot run out.
Benefits of Globalization
What is increased communication, increased trade, and higher paying jobs?
Trade Secret
The value given up by not taking advantage of the next best advantage.
What is opportunity cost?
Short term interest rates that banks charge when they lend funds to other banks.
What is Interest on Reserves rate?
COLA
What is an increase in SS benefits to counteract inflation?
What is outsourcing?
Absolute Advantage
What is it called when a country has the ability to produce goods at a lower cost per unit. But trading is not mutually beneficial
A large number of small companies compete against each other. Homogeneous products, lack price of influence over commodities.
What is perfect competition?
The fed lowers rates. Loans are cheaper, so people and businesses borrow more money.
What is expansionary policy?
A trade agreement between Canada, US, and Mexico for more balanced North American trade.
What is UMSCA?
Monetary Policy
What addresses interest rates and money circulation that is managed by the Feds